How to do your Robinhood crypto taxes

Robinhood crypto tax doesn't have to be complicated. Connect to Koinly via API or by uploading a CSV file and it'll calculate your Robinhood crypto taxes for you and generate your IRS crypto tax reports. Here's how it works.

How are Robinhood crypto transactions taxed?

You'll pay Capital Gains Tax or Income Tax on your Robinhood transactions, depending on the specific transaction:

• Capital Gains Tax: If you sell or trade cryptocurrency through Robinhood for more than you originally paid, you may owe Capital Gains Tax on the profit, but it depends on how long you've owned your crypto. For crypto you've had less than a year, you'll pay Income Tax on any capital gain. For crypto you've had more than a year, you'll pay a lower long-term Capital Gains Tax rate of up to 20%.

• Income Tax: If you receive cryptocurrency as a reward, such as staking rewards on Robinhood, this might be treated as income and taxed upon receipt. In such cases, the fair market value of the crypto at the time you received it is subject to Income Tax.

Does Robinhood automatically deduct taxes?

No, Robinhood does not automatically withhold taxes on your behalf. You're responsible for keeping track of any taxable activity, such as gains from selling crypto or income from rewards, and reporting it to the IRS when you file your taxes.

Does Robinhood send crypto tax forms?

Yes, Robinhood issues tax forms to help you report your crypto activity. If you're eligible, you'll typically receive a Form 1099, which includes details of any taxable events such as sales or income from crypto. These forms are usually made available through your Robinhood account during tax season.

Why isn't my Robinhood crypto tax form accurate?

Robinhood can only report transactions that occurred on its platform. If you’ve transferred crypto into or out of Robinhood from another exchange or wallet, or if you acquired assets elsewhere, Robinhood may not have full visibility into your cost basis—the original value of your crypto, including fees.

Cost basis is essential for calculating capital gains or losses. Without accurate cost basis data, any gain or loss reported may not reflect your actual tax liability. This is a limitation not unique to Robinhood; most exchanges don't share cost basis information across platforms.

To ensure your tax reporting is complete, especially if you use multiple wallets or exchanges, many investors choose to use a crypto tax calculator that consolidates data from all sources.

How to get your Robinhood crypto tax forms

You can find all your Robinhood tax documents in the tax center in your account. You can find this under your profile icon within account settings. Depending on your investments on Robinhood, you may receive:

- Form 1099-R
- Consolidated 1099-B
- Form 480.6
- Form 1042-S
- Form 5498

Remember, if you've transferred crypto on and off Robinhood, your 1099-B will not be accurate. That's where crypto tax software like Koinly can help, as it can track your cost basis across all the exchanges and wallets you use

How to file Robinhood crypto taxes

You need to report any gains, losses, or income from your Robinhood crypto investments to the IRS as part of your annual tax return, before the April deadline. You'll report crypto gains and losses using Form 8949 & Schedule D, and additional income from crypto in Schedule 1 or Schedule C, depending on your employment status. You may also use your Robinhood 1099-B form to report your crypto to the IRS, provided it is accurate.