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Filing Robinhood Taxes on TurboTax, Explained

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Feb. 16 2022, Published 6:56 a.m. ET

If you use Robinhood to trade stocks and cryptocurrencies, you may receive Form 1099, which you’ll need to file your tax return with the IRS. What information is on the 1099 form? How do you upload a Robinhood tax document to TurboTax software?

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Many young investors prefer Robinhood as an online broker, as it doesn’t charge trading fees but offers a range of stocks and cryptocurrencies, extended-hours trading, and fractional share purchases.

Despite its popularity, Robinhood has had its fair share of customer complaints. In 2021, for instance, it restricted trading for GameStop and other stocks targeted for short squeezes by WallStreetBets, prompting some investors to ditch the platform. The platform's delayed release of Form 1099 that year also irritated some users. The broker usually distributes tax forms to users by mid-February.

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What information is on Robinhood’s Form 1099?

You’ll receive Form 1099 from Robinhood if your activities on the platform generated reportable income. The form details the money you made from selling stocks, ETFs, options, and cryptocurrencies, as well as dividends received and disallowed wash-sale losses. The document is also forwarded to the IRS.

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How to file Robinhood taxes on TurboTax

If you prepare your returns using TurboTax, Robinhood has made it easy to upload your 1099 form to the tax software. Remember you may receive more than one tax document from the broker if you traded both stocks and cryptocurrencies. This is because, for tax purposes, the IRS treats stocks, ETFs, and options as securities, and cryptocurrencies as property. Securities and property may be subject to different rules.

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To upload a Robinhood securities 1099 form to TurboTax, open the software and go to “Wages and Income.” From there, select “Stocks, Mutual Funds, Bonds, and Others.” Click “Yes” if the software asks if you sold the listed securities. When asked to enter your bank name, choose Robinhood Securities. On the next screen, you’ll need to enter your account number and document ID, which are both on the 1099 form. Once you’ve entered the details, the form will be imported into the tax software.

To upload a Robinhood crypto 1099 form to TurboTax, go to the “Wages and Income” screen and select “Cryptocurrency.” Answer “Yes” when asked if you traded cryptocurrency. Select "Robinhood" and continue. For crypto transactions, Robinhood provides a CSV file alongside the 1099 form. Upload that file into TurboTax.

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