Tax documents FAQ

You can find your tax documents with these steps:

1. Select Account → Menu (3 bars) or Settings
2. Go to Tax center
3. Select a form to review its details

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.

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

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

To make any corrections, send us a request. Check out what we need to correct errors on your 1099s.

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.

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

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 Form 1099, which you’ll get by February 15 of the following year. You may be able to report the backup withholding as federal income tax withheld on your tax return. If you need help with this claim, consult a tax professional.

For more information about backup withholding requirements, go to IRS.gov.

If you are subject to a C-Notice, you would have been directly notified by the Internal Revenue Service (IRS). In this notice, the IRS will inform you that you either failed to report, or underreported dividend or interest income on your tax return, and therefore are subject to backup withholding.

Keep in mind, Robinhood can’t confirm if you’re subject to this type of withholding since the IRS notifies you directly.

When you receive this C-Notice, you are able to report it to Robinhood directly within the online Tax Certification form by unchecking the box at the end of the Certification Agreement. By unchecking this box, you are indicating you have been notified by the IRS that you are subject to backup withholding, and once submitted, Robinhood is then required to apply a 24% backup withholding on any dividends and interest in your investing accounts accordingly. We’re required to withhold this tax by law until the IRS notifies us to stop.

If you received a message from Robinhood letting you know that you indicated you’re subject to C-Notice but this is incorrect, you need to Update your tax status with us. If your tax certification is correct, no further action is needed.

For more information about backup withholding requirements, go to 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. The IRS prohibits taxpayers from claiming losses on these transactions 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.

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).

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.

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