Does Robinhood Report to the IRS?
Traded on Robinhood exchange? The IRS already knows. Find out what Robinhood reports about your transactions to the IRS and how to stay IRS compliant.
Robinhood issues several IRS forms to users depending on their transactions. The IRS receives identical copies.
Forms include 1099-B, 1099-R, 5498, and more, depending on your investments and location.
Users who fail to declare investments from Robinhood may receive a B-Notice or C-Notice.
Does Robinhood report to the IRS?
Yes. Robinhood reports crypto to the IRS. Any time you receive a tax form from Robinhood, the IRS receives an identical copy.
You'll be able to see any 1099 forms Robinhood has issued you in the tax documents section within your account.
Read next: Is Robinhood Safe?
What does Robinhood report to the IRS?
Robinhood issues several IRS forms depending on your investments and location. This includes:
Form 1099 (combined PDF) including 1099s for Robinhood Securities, Robinhood Crypto, Robinhood Derivatives, and Robinhood Money.
Form 1099-R for distributions from Robinhood IRAs.
Form 5498 for IRA contributions and rollovers.
Corrected Form 1099 (if there are updates such as income reclassification or personal information changes).
Form 1042-S for non-U.S. customers receiving U.S.-sourced income.
PR tax form 480.6 for residents of Puerto Rico.
When will I receive my IRS forms from Robinhood?
If you’re going to receive an IRS form from Robinhood, you’ll be able to access it from the tax documents section of your Robinhood account by February of the following financial year at the latest, giving you plenty of time to file ahead of the April tax deadline.
Read next: Crypto 1099 Forms
Why didn’t I receive tax forms from Robinhood?
Any user won’t receive a tax form from Robinhood if:
They received less than $10 in dividends, substitute dividends, or interest.
They didn’t sell any stocks, crypto, ETFs, or options.
They received less than $600 in miscellaneous income.
Why is my Robinhood tax form inaccurate?
Information on your Robinhood tax form may be inaccurate due to:
Income reclassification: A company may later change the tax classification of previously reported dividends or interest (common with mutual funds, ETFs, and REITs).
Cost basis updates: Robinhood may receive updated cost basis information after the end of the tax year. As well as this, for crypto specifically, if you’ve transferred crypto on or off the Robinhood platform, your cost basis is likely to be inaccurate, meaning your gains or losses from disposals will be inflated.
Personal information changes: If your personal details (e.g., name, SSN) were updated after the initial 1099 was issued.
These issues can lead to Robinhood issuing a corrected Form 1099. You can request this by getting in touch with the Robinhood support team.
Read next: Robinhood alternatives for options trading
What do I need to do if I receive an IRS form from Robinhood?
If you receive any IRS forms from Robinhood, you should:
Review your personal details. Check that your form lists your correct personal information. If this is inaccurate, you may receive a B-Notice. This is a backup withholding warning that states the name and/or taxpayer information on your Robinhood account doesn’t match the number or number combination that the IRS has on record for you.
Calculate your Robinhood taxes. You may owe both Capital Gains Tax and Income Tax, depending on your investments.
Report your profits. You’ll need to report any capital gains or losses in Form 8949 and Schedule D, as well as any income on Schedule 1 and potentially other forms depending on your investments.
Keep records. It's important to maintain thorough documentation of your investments in case the IRS requests verification or initiates an audit.
What does the IRS do with the information Robinhood provides?
The IRS uses information provided by Robinhood to ensure Robinhood customers are reporting their taxes accurately. Failure to do this will likely result in a C-Notice being issued.
A C-Notice is a notice sent directly by the IRS to inform you that:
You failed to report or underreported dividend or interest income on your tax return.
As a result, you are now subject to backup withholding.
What is backup withholding?
It's a mandatory tax withholding (typically 24%) applied to certain payments like dividends and interest in your account.
Why would you receive a C-Notice?
You’d receive a C-Notice if the IRS finds that:
You left out some dividend or interest income on your previous tax filings.
You reported less than what was reported to them by financial institutions like Robinhood.
What happens after receiving one?
You must indicate this status in Robinhood’s Tax Certification form by unchecking a specific box.
Once Robinhood is notified, they are legally required to begin backup withholding on any dividends and interest in your investing account until the IRS instructs them to stop.
In other instances, the IRS may also use information provided by exchanges like Robinhood to identify taxpayers to audit.
Read next: How to prepare for a crypto tax audit
What information does Robinhood send to the IRS?
Information Robinhood sends to the IRS includes:
Gross proceeds from sales: Every sale of stocks, crypto, ETFs, or options is a reportable event. Robinhood reports the total gross proceeds from these sales, even if you reinvested or kept the funds in your account. Remember, this figure may be inflated if your cost basis is incorrect.
Interest and dividend income: Payments of interest or dividends are reported if they meet reporting thresholds (e.g., $10 or more).
Miscellaneous income: This includes items like referral bonuses. If total miscellaneous income is $600 or more, it must be reported.
Wash sales data: If you incur wash sales by selling and rebuying substantially identical securities within 30 days, those are tracked and reported, specifically aggregated in Box 1G.
Personal data: Robinhood also provides your personal data, including your name, address, and social security number.
Read next: Robinhood vs. Coinbase
How do I report my Robinhood taxes to the IRS?
You need to report any gains or losses from Robinhood to the IRS using Form 8949 and Schedule D. Additionally, any income earned through Robinhood will be reported on Schedule 1 (or Schedule C, depending on your filing status), and you may need several additional forms depending on the type of income you have from the platform.
Report your Robinhood crypto taxes with Koinly
For your Robinhood crypto investments, Koinly makes it simple. Koinly connects to more than 900 exchanges and wallets to help you get all the data you need for your crypto taxes. Just connect Robinhood to Koinly via API or upload a CSV file, and Koinly will calculate your Robinhood crypto taxes for you.
FAQs
Do I have to pay tax on my Robinhood transactions?
Yes. If you have capital gains, additional income, or investment income from Robinhood, you’ll need to pay any tax due to the IRS. Learn more in our crypto taxes guide.
Do you get a 1099 from Robinhood?
Yes. Robinhood issues a consolidated 1099-B.
Do I need an FBAR for Robinhood?
The FBAR (Foreign Bank and Financial Accounts) filing requirement applies to foreign accounts exceeding $10,000. As Robinhood is based in California, it’s a US-based exchange, so the FBAR should not apply. However, if you hold funds on other foreign exchanges and the value exceeds $10,000, an FBAR filing may be required.
