About tax documents
Here are some updates to this year’s tax season:
Tax day is April 18, 2023 for the 2022 tax year, and the following 2022 tax forms will be will be available by the corresponding due dates. Keep in mind, you won’t get one or more of these tax forms if your account activity doesn’t need to be reported per IRS rules.
|2022 tax forms||Due dates in 2023|
|Form 1099-R||January 31|
|Consolidated 1099 from Robinhood Markets, Inc.||February 15|
|Form 480.6 series||March 1|
|Form 1042-S||March 15|
|Form 5498||May 31|
Form 1099-R is required by the IRS for reportable distributions from one or more individual retirement accounts (IRAs), such as with Robinhood. This includes early distributions, even when it involves removing contributions from a Roth IRA.
Form 5498 is required by the IRS for reportable contributions and reporting of the IRA Year End Fair Market Value. You’ll also receive a Form 5498 if you completed a Roth conversion, Rollover contributions, or recharacterized contributions during the tax year. If no contributions take place during the tax year, Robinhood will use the YE statement value for the IRA 5498 filing.
A Form 1042-S is used to report US-sourced income (like dividends and interest) paid out to non-US persons. If you’re certified as a non-US person for tax purposes and receive US sourced income, you’ll get a 1042-S.
You’ll get a series of Form 480.6 if you receive dividends, interest, gross proceeds, or other reportable payments from a company domiciled in Puerto Rico in 2022, or you were a resident of Puerto Rico for 2022 tax purposes.
Form 2439 is a notice to shareholders of undistributed long-term capital gains. You might get a Form 2439 if you owned shares in a specific Mutual Fund or Real Estate Investment Trust (REIT).
You can find your tax documents with these steps:
For large documents, our website may be the best way to read and download your tax documents.
You may get multiple tax documents based on your taxable events during the tax year.
If all of the following are true, you won’t receive a tax document:
Unlike the January 31 deadline for simple Form 1099s, the IRS deadline for Consolidated 1099s like from Robinhood is February 15.
The IRS changed the deadline for Consolidated 1099s after the cost basis rules changed back in 2014. This change gives brokers like us more time to accurately report transactions like the following, which must be tracked and reported in the preceding year.
We may deliver customer forms in multiple groups based on several factors, including the list in this section and others not listed but are likely to require correction. This could result in you receiving one or more forms before others.
We may issue you a new corrected Form 1099 for a number of reasons, including:
The 1099 doesn’t show the amount of money that you deposited or withdrew, it shows the gross proceeds for any positions that were closed during the tax year.
Let's say you deposited $100, and then during the tax year you:
In this case, your gross proceeds would be $110 + $60 = $170, which would be reported on your 1099, even though you only deposited $100.
Robinhood will receive positions from other broker dealers through the ACAT process. Through this process, Robinhood is dependent on receiving cost basis information from the previous broker dealer. If the previous broker-dealer does not send the cost basis to Robinhood, the sell transactions will show on the 1099-B as non-covered positions.
Any transaction that results in taxes owed to the government and generates a tax form are reportable, such as:
To help you file your tax returns, we’ll provide the cost basis information (if available).
Availability depends on where you purchased the crypto.
In instances where we don’t have the cost basis, it’s your responsibility to calculate and report the proper cost basis on your tax return. Note that only the gross proceeds shown on the Robinhood Crypto 1099-B is reported to the IRS.
Robinhood does not provide tax advice and you should consult a tax professional regarding any specific questions you have regarding taxes owed in connection with crypto transactions.
Generally, per IRS guidelines, virtual currency is treated as property and general tax principles applicable to property transactions apply to transactions using virtual currency. When you sell virtual currency, you must recognize any capital gain or loss on the sale, subject to any limitations on the deductibility of capital losses. If you sold crypto or received rewards of $600 or more in the tax year, you will receive a combined Form 1099 from Robinhood Crypto, LLC this tax season.
A hard-fork event happened after the Ethereum Merge and created a new crypto called ETHW. However, Robinhood didn’t support the ETHW, and no hard fork event occurred for our customers. Therefore, there are no tax implications for your Robinhood Crypto account for this tax year. For more information regarding hard forks, check out crypto transactions in the IRS FAQ about crypto transactions.
The year-end cutoff for crypto trades with Robinhood Crypto, LLC is 11:59 PM UTC time on December 31, 2023.
You’ll get a backup withholding warning (B-Notice) if the name and/or taxpayer identification number (Social Security number) on your Robinhood account doesn't match the name and number combination that the Internal Revenue Service (IRS) or Social Security Administration has on record for you.
If you receive an email from us letting you know we received a first warning for your account, you'll need to complete a W-9 form to satisfy the IRS requirements. We'll send you the form by email from firstname.lastname@example.org or email@example.com with the subject line "Action required: Complete the IRS W-9 form." You can complete this process without a DocuSign account.
If we receive a second B-Notice from the IRS regarding your account, we'll email you with a different set of steps to resolve the warning—you'll need to upload a photo of your Social Security card instead. You'll receive a prompt to complete this step in the app if applicable.
If the required documentation is not submitted by the deadline provided in the warning and...
The warning only applies to your Robinhood Securities account: We'll begin 24% backup tax withholding until the warning is resolved. That means that all cash proceeds, including future sell orders, dividends, interest, and certain other payments that we make to your account will be subject to 24% withholding. Additionally, we'll restrict your account to position-closing orders. You'll be able to hold and sell your positions, but you'll be restricted from buying and depositing funds.
The warning applies to your Robinhood Securities and Robinhood Crypto accounts: We'll restrict both accounts to position-closing orders until the warning is resolved. You'll be able to hold and sell your positions, but you'll be restricted from buying and depositing funds. We'll also begin 24% backup tax withholding on your Robinhood Securities account. That means that all cash proceeds, including future sell orders, dividends, interest, and certain other payments that we make to your account will be subject to 24% withholding.
We cannot reverse or return backup withholdings: Because withheld taxes go to the IRS, we can’t return them. Backup withholding is reported as federal tax withheld. This year’s withholdings will be reported on your 2023 Form 1099, which you’ll get next year. You’ll need to consult a tax professional for assistance and work with the IRS on a withholding claim.
For more information about backup withholding requirements, visit IRS.gov.
Income reclassification happens when a company reclassifies payments made throughout the year to a different type of income. This commonly occurs on mutual funds, ETFs, and Real Estate Investment Trusts (REITs). If you hold these types of securities you may also receive a corrected 1099 based on the timing of the reclassification.
If you sell a stock for a loss and purchase substantially identical stock either 30 days before, 30 days after, or on the day of the sale, you've executed a wash sale.
Robinhood is required to report wash sales on a same account same security level. Wash sales not reported by Robinhood due to different accounts and being a similar security are the responsibility of the taxpayer. The IRS prohibits taxpayers from claiming losses on these transactions from wash sales for tax purposes. The loss is added into the cost basis of the shares you replaced your original stock with. And the holding period of the investment you sold is also added to the holding period of the new investment. For details, check out Wash sales.
You can find your total wash sales for the year in Box 1G on your 1099 tax document.
If you’d like to claim a loss for a worthless stock, you can submit a request for a copy of your yearly transaction history. Once we receive your request, we’ll send you a copy of your transaction history in a .csv file. You can use that file to prove a loss on your taxes.
If you received stocks through our referral program of $600 or more, it will be reported as miscellaneous income on your Robinhood Markets Consolidated 1099. If you have referral shares valued at less than $600, it may not have to be reported as miscellaneous income on the Robinhood Markets Consolidated 1099.
If you sell the shares you receive through our referral program, it will be reported just like any other stock sale in your account.
The 1099 doesn’t show the amount of money that you deposited or withdrew, it shows the gross proceeds for any positions that were closed during the tax year. For example, let's use an account that had a $100 deposit:
In this example, the customer’s gross proceeds were $110 + $60 = $170. The customer’s gross proceeds of $170 will be reported in the 1099, even though the customer only deposited $100.
TurboTax is not an affiliate of Robinhood Markets, Inc. (“Robinhood”) or any of its subsidiaries. Robinhood makes no representations as to the accuracy or validity of TurboTax products.
Robinhood does not provide tax advice. For specific questions, you should consult a tax professional.