Tax documents FAQ | Robinhood

Tax documents FAQ

How do I access my tax documents?

You can find your tax documents with these steps:

  1. Select AccountMenu (3 bars) or Settings (gear)
  2. Go to Tax center
  3. Select a form to review its details
Note

For large documents, our web platform may be the best way to read and download your tax documents.

Why do I have multiple tax documents?

You may get multiple tax documents based on your taxable events during the tax year.

  • A combined PDF from Robinhood Markets that includes Form 1099s for Robinhood Securities, Robinhood Crypto, and Robinhood Money.
  • If you have a Robinhood IRA, you’ll get separate tax documents for any reportable events, such as the Form 1099-R and Form 5498.
  • If any necessary corrections are applicable to any of your Robinhood 1099s or other related tax forms, you may get a corrected Form 1099.

Why didn’t I get a tax document?

If all of the following are true, you won’t receive a tax document:

  • Received less than $10 in dividends, substitute dividends or interest
  • Didn’t sell any stocks, crypto, ETFs, or options
  • Received less than $600 in miscellaneous income

Why did I get a corrected 1099?

We may issue you a corrected Form 1099 for a number of reasons, including:

  • You have stock or ETFs that went through income reclassification where the company changes the tax classification of previously reported dividends or interest
  • Cost basis updates were received after year end
  • Your personal information was updated after your initial 1099 was issued

How do I correct errors on my 1099?

Why doesn’t my 1099 match what the app shows?

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.

Example

Let's say you deposited $100, and then during the tax year you:

  • Purchased XYZ shares for $100
  • Sold XYZ shares for a gain of $10 (making your proceeds $110 on that trade)
  • Purchased MEOW shares for $50
  • Sold MEOW shares for a gain of $10 (making your proceeds $60 on that trade)

In this case, your gross proceeds would be $110 + $60 = $170, which would be reported on your 1099, even though you only deposited $100.

What’s a reportable tax event?

Any activity that results in reportable transactions to the government and generates a tax form, such as:

  • Selling stocks, crypto, ETFs, or options
  • Corporate action events, such as mergers or tender offers
  • Receiving interest or dividend payments, or other miscellaneous income

What's a B-Notice?

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 dse@docusign.net or dse_na2@docusign.net 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 before February 15 of the following 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, go to IRS.gov.

What’s income reclassification?

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.

What’s a wash sale?

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. 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.

How do I claim a loss on worthless stock?

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.

Do referral stocks affect my 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.

What’s US-sourced income?

Non-US customers only receive tax reporting on US sourced income. US-sourced income includes payments from US companies, such as dividends, as well as interest and rewards from Robinhood. These payments are reported on Form 1042-S and would also include any NRA withholding taxes paid (where applicable).

What’s NRA withholding?

Non-US customers are subject to US withholding tax on their US-sourced income. This tax is known as NRA (nonresident alien) withholding, and is applied at the time of payment. If you have NRA withholding of $0.50 or more, it’ll be reported on a Form 1042-S. The default tax rate for NRA withholding is 30%, with some exceptions:

  • If you’re a non-US person that’s certified on Form W-8BEN, you’ll be exempt from NRA withholding on US-sourced portfolio interest.
  • If you’re eligible for, and have successfully claimed a treaty rate as part of the W-8BEN certification, you may get a reduced rate of NRA withholding on US-sourced dividend income.

Disclosures

TurboTax isn’t 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 doesn’t provide tax advice. For specific questions, you should consult a tax professional.

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Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker-dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). The Robinhood Money spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Credit card products are offered by Robinhood Credit, Inc. (“RCT“) (NMLS ID: 1781911 and issued by Coastal Community Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC and RHS are not banks. Securities products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. Cryptocurrencies held in RHC accounts are not covered by FDIC or SIPC protections and are not regulated by FINRA. RHY products are not subject to SIPC coverage but funds held in the Robinhood Money spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Robinhood Financial's Fee Schedule to learn more.

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All investing involves risk.

Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker-dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). The Robinhood Money spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Credit card products are offered by Robinhood Credit, Inc. (“RCT“) (NMLS ID: 1781911 and issued by Coastal Community Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC and RHS are not banks. Securities products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. Cryptocurrencies held in RHC accounts are not covered by FDIC or SIPC protections and are not regulated by FINRA. RHY products are not subject to SIPC coverage but funds held in the Robinhood Money spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Robinhood Financial's Fee Schedule to learn more.

© 2024 Robinhood. All rights reserved.