Robinhood is a popular free trading app used by millions of mostly young investors. In addition to not having to pay trading fees on stocks and cryptocurrencies, you can access credit through Robinhood margin accounts to boost your bets. But you need to be aware of Robinhood’s margin maintenance requirements to avoid trouble.
How Robinhood taxes are calculated
If you used Robinhood to trade stocks or cryptocurrencies, you may get the 1099 tax form. The document shows the money you made on Robinhood from selling stocks, cryptocurrencies, options, and other securities. The form will also show any dividends you earned and your disallowed wash-sale losses.
If you made a profit from selling a stock, the IRS considers that a capital gain, which is taxed depending on how much you profited and how long you held the investment. Profits from investments held for less than one year can be subject to a capital gain tax of as high as 37 percent, whereas profits from those held for more than a year are taxed 20 percent.
What to do with your Robinhood tax form
The 1099 form you receive from Robinhood is meant to help you prepare your tax returns, particularly the capital gain tax segment. You may end up with two tax documents if you traded both stocks and cryptocurrencies and generated a reportable income.
How to import Robinhood's 1099 form into TurboTax correctly
The process of uploading a Robinhood tax form into TurboTax will depend on whether you’re reporting securities transactions or crypto trades. The IRS treats stocks, options, and ETFs as securities, while it treats cryptos as property.
To import a Robinhood securities 1099 form into TurboTax, go to “Wages and Income” in the tax preparation software. Select “Stocks, Mutual Funds, Bonds, and Others,” and confirm, and then choose “Robinhood Securities” as the bank or broker name. Enter your Robinhood account number and the tax document ID from your 1099 form. TurboTax will automatically import the tax form once you’ve entered the correct details.
To import Robinhood's crypto 1099 form, go to “Wages and Income” and select “Cryptocurrency.” Confirm the selection and choose Robinhood as the broker name. Upload the CSV file that Robinhood provided alongside the 1099 form to the software.
What to do you if can’t import 1099 from Robinhood to TurboTax
If you’re unable to upload a Robinhood tax form into TurboTax, there are several things you could try. If you’re importing crypto tax form, make sure the document’s name ends with “csv”. If the problem persists, check that you entered your account number and document ID correctly. You may also need to allow a few days for your details to update in the tax software.