When Will Robinhood Send Tax Documents?
All Robinhood users who meet certain criteria must submit tax documents related to their reportable income throughout the year.
Since Robinhood is an online registered brokerage in the United States, it’s imperative for those who have performed stocks sales and purchases to report on time.
Otherwise, they might face expensive penalties related to failing to submit tax statements strictly linked to account activity.
Nevertheless, if you don’t know where or how to access Robinhood tax documents on your Robinhood account, it is possible for you to face problems related to a taxable event.
That’s why in today’s guide, we will be providing you with the information you need about the following matters:
- When will Robinhood send tax documents?;
- What to know about Robinhood tax documents;
- What to do if Robinhood detected errors or issues in your statements history.
Understanding Robinhood Tax Documents
When you participate in Robinhood markets, you are accountable for every process you perform inside it.
Trading stocks, mutual funds managing, and even investing in cryptocurrency will affect your income and dividends during the past year.
Since all eligible users must file a tax form, providing personal account details, such as your Social Security Number, it’s imperative before making any investment in the Robinhood app.
That’s why some Robinhood Applications Are Under Review until the platform successfully confirms full eligibility.
1. 1099 Robinhood IRSM Form
1099 forms are a tax form that Robinhood release, which includes the amount of money and capital gain received by a user throughout the year.
Likewise, it also reports capital losses and dividend payments purely for tax purposes.
The do’s and don’ts of 1099 tax forms are complicated and imply special processing requirements in some cases.
As a consequence, we highly recommend you learn more about retirement savings account, interest income, and more, in Robinhood’s Help Center here: how to read your 1099 form.
2. Robinhood Crypto IRS Form
According to Robinhood, cryptocurrencies are considered property by the IRS.
As a consequence, cryptocurrency trades and investments must also pay taxes as miscellaneous income.
As a consequence, all those who sold or received income for $600 and more in a Robinhood Crypto account will be considered as a taxable event.
Therefore, Robinhood tax documents will be provided to those customers who trade cryptocurrency and do meet the miscellaneous income requirements expressed by a tax document or IRS form.
Pro Tip: The Robinhood app has proven to be a great place to manage mutual funds, trade stocks, and more.
But, will customers feel safe while managing crypto there? What’s more, Do You Own Crypto On Robinhood? Learn more about this matter by reading our related post.
3. Other Concepts that Robinhood Customers Must Acknowledge
This informational blog post written by GrowFollowing shouldn’t be taken as investment advice.
On top of that, Robinhood also recommends users get help from a tax professional instead of just reading guides from their Help Center.
Although Robinhood makes it easy for everyone to learn more about Wash Sale, Amended Return, Tax Documents, Tax Refund, and general concepts such as dividends and more, you should always consult a professional first.
When Will Robinhood Send Tax Documents?
So, when does Robinhood release tax documents?
Robinhood tax documents are submitted alongside the IRS deadline, which is normally in mid-February.
IRS’s return filing deadline for tax returns and reports might vary depending on different factors.
If brokers, such as Robinhood, fail to comply with tax season requirements, a deadline extension can be requested.
Robinhood Must Comply with the Internal Revenue Service (IRS) Requirements
Back in 2021, Robinhood failed to meet deadlines, which, according to the platform, was caused due to “unavoidable challenges” and “possible delays with a vendor.”
Consequently, users couldn’t submit the following documents required by the IRS in mid-February.
This caused controversy and uncomfortability among those who have a Robinhood account on the platform.
Luckily, the IRS granted Robinhood customers a 30 days extension for submitting tax documents on time.
How to Access Tax Forms in Robinhood
Firstly, we highly recommend finding each tax document you have from the desktop site and not the mobile app.
If you must download a large file, it is possible that your phone might have a bug when opening the document.
- Go to Robinhood’s home page, and tap on your account icon;
- There, select the option that says “Statements and History;”
- Finally, tap on “Tax Documents,” and you will be good to go.
You can learn more about this matter here: How to Access Your Tax Documents.
How to Correct Errors in a Tax Document
Errors in IRS forms are among the most common tax document issues.
Inaccuracies might happen, and although they are as annoying as they get, you can easily solve them on your account.
There are three main types of corrections that can be applied to IRS forms and 1099 documents:
- Incorrect Social Security Number;
- Misspelled name on your account forms;
- Incorrect trade history.
Depending on the error you have, you need to contact Robinhood support so they can solve it promptly.
In any case, you can get more information about this matter here: correct errors on your 1099.
That’s all you need to know about Robinhood and taxes for now.
Remember that filling out forms is not a game - you should always consult a professional before you do so.
In the meantime, keep in mind that you can receive more useful Robinhood content here, at GrowFollowing.
FAQ
Can I Move My Assets from Robinhood to Other Individual Brokers?
Yes, you can. In order to do this, you need to use the ACATs system. For instance, you can Transfer from Robinhood to Fidelity at your will if you please.
Learn how to do this to this broker explained by reading our related blog post.
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.