How to do your Robinhood crypto taxes
Robinhood has set up its very own crypto exchange platform. Here we shed some light into how Robinhood crypto taxes work, what cryptocurrencies you can trade and how to sort your Robinhood crypto taxes.
How does Robinhood crypto work?
Robinhood has added crypto wallets to its platform so that users can spend and trade their coins, whether it be Bitcoin or altcoins like Ethereum. One of the advantages Robinhood holds over other centralized exchanges like Binance and Gemini, is that it does not charge fees.
This is likely because Robinhood is not a traditional crypto company - it made its name trading stocks. Up until 2022, you couldn't move your crypto on or off the Robinhood crypto exchange - however, Robinhood is now rolling out this option for users.
How to prepare Robinhood crypto taxes
Tax deadline looming and need to prepare your Robinhood crypto taxes? Wherever you live - your local tax authority wants to know about your Robinhood crypto transactions, including any capital gains and losses, income and expenses. To get started with your Robinhood crypto tax return, you'll need your complete Robinhood crypto transaction history or your 1099-B form. There's a couple of ways this works, so let's dive in.
How to download & export Robinhood crypto trading & transaction history
There's two ways to get your Robinhood crypto taxes done - let's look at both options.
- Add your Robinhood crypto transaction history via a CSV file. Create a CSV file of your Robinhood crypto transaction history and upload it to a crypto tax calculator like Koinly. See our guide on creating a custom Robinhood CSV file.
- Robinhood provide a Consolidated Form 1099 for users. You can use this to declare your Robinhood crypto taxes separately from the rest of your crypto taxes. However, you should check this form for accuracy - if you've transferred off the platform, your 1099 form may be incorrect.
Does Robinhood provide a crypto statement?
Yes. Robinhood Crypto provides users who sold crypto with a Consolidated Form 1099-B. This tax report includes all your disposals of crypto within the Robinhood platform.
You can find this under Tax Documents within your Robinhood account.
Robinhood Crypto 1099
Normally, 1099-B forms (or any 1099 forms for that matter) aren't very helpful to crypto investors. This is because they only track the disposals and trades on that specific platform or exchange and normally crypto investors are using multiple exchanges for their trades.
However - as Robinhood used to lock crypto into the platform (so you couldn't transfer any in or out) their Consolidated Form 1099 used to be correct. As they're now rolling out the option to transfer crypto from their exchange to other wallets, you should check your Consolidated 1099 form for accuracy and ensure your transfers haven't been recorded as disposals (like a sale, trade or spend).
If your Robinhood Crypto 1099 Form is correct - you can upload this form directly to tax apps like TurboTax to report your Robinhood crypto taxes.
But your Robinhood crypto 1099-B won't include all your crypto trades from other exchanges or platforms. So while you can file your Consolidated 1099-B from Robinhood Crypto separately - many users prefer to use crypto tax software to calculate all their crypto taxes across exchanges and platforms together to save hours of spreadsheets and forms!
Remember, whenever you get a 1099 form - the IRS gets a copy too. So always report your Robinhood crypto taxes (and your other crypto taxes!) accurately.
When does Robinhood send 1099?
If you're going to receive a 1099 form from Robinhood, these will be issued in mid-February for the preceding tax year. You can find them in the tax documents section of your Robinhood account.
Does Robinhood supply a financial statement?
Yes. You can download financial statements from your Robinhood account.
Just log in to your account and select the account icon in the bottom right corner, then statements and history, then account statements. You can then generate monthly financial statements.
Alternatively, head to the tax documents page to download an annual tax form. 1099 forms are generally available from January to February.
How to generate a Robinhood crypto tax statement
You can generate your 1099-B in your Robinhood account. Just head to the tax documents page once you're logged in and find the Consolidated Form 1099-B from Robinhood Crypto.
However, if you'd rather calculate all your crypto taxes together, you can create a CSV file of your Robinhood crypto transaction history to upload to a crypto tax calculator like Koinly. We only recommend this option if you have a minimal amount of trades on the Robinhood crypto exchange, otherwise it's generally better to report your Robinhood crypto taxes separately from the rest of your crypto taxes using the Robinhood crypto 1099 form.
Robinhood crypto CSV exports
Robinhood don't make it that easy to get your Robinhood crypto transaction history within your account.
Fortunately, you can email Robinhood support and request a CSV file at any point and they will be able to provide you with one.
When you're contacting them, make sure you ask for your complete crypto transaction history on Robinhood, for however long you've been using the account. This ensures your crypto tax calculator can accurately identify your cost basis and calculate your short and long-term gains.
Once you've got the file, simply upload it to your crypto tax app.
Robinhood tax API
Robinhood doesn't have a tax API just yet - but watch this space.
If you'd like to use a crypto tax app to calculate your Robinhood crypto taxes, you'll need to get a CSV file of your Robinhood transaction history.
Does Robinhood provide an end of year statement?
No. Robinhood doesn't provide an EOFY statement.
However, your consolidated 1099-B from Robinhood crypto or your crypto transaction history CSV file can work as an end of year statement.
Does Robinhood report crypto to the IRS?
Yes. Robinhood reports crypto to the IRS.
Anytime you're issued with a 1099-B (or any 1099 form), the IRS gets a copy too. Any user who sells crypto on the Robinhood platform will be issued a 1099-B form and the IRS will get the same form. This is why it's so important to report your crypto taxes accurately.
Does Robinhood report to the IRS?
You may receive more than one 1099 form from Robinhood if you're investing in properties other than crypto, like Robinhood securities. You'll be able to see any 1099 forms Robinhood has issued you in the tax documents section within your account.
Koinly is a Robinhood crypto tax reporting tool
Though you can file your Robinhood taxes separately using your Consolidated 1099-B, if you're using any other crypto exchanges or wallets, these won't be included in your 1099-B form. So if you're reporting crypto transactions for multiple platforms, Koinly makes it simple.
Not only does our tax software integrate with your transaction history, but it calculates your taxes in a format that makes sense for your country’s tax authority. Essentially, Koinly does all the boring tasks that would cost your hours and hours sitting at a computer.
As a quick breakdown, here’s a short summary of what Koinly does:
- Imports all your trades including purchases, sales, swaps, and rewards.
- Converts your transactions into your country’s currency at fair market value (this in itself is a massive time saver).
- Deciphers which of your transactions are taxable and which are not (you may sometimes need to do some fiddling, but for the most part the software organizes it for you).
- Allows you to submit a clean and accurate report to your tax office.
Sign up free and try our Robinhood crypto tax software today.
