Guide to Filing 1099 Taxes as a Robinhood User

Robinhood is a financial services company popular for commission-free trading via its mobile application. If you’ve invested through the platform this year, you’ll likely receive one or more 1099 tax forms. Your brokerage activity is reported directly to the IRS, even if you’re not a full-time trader. Failing to meet your obligation of properly filing your 1099s could mean paying unnecessary taxes or triggering an IRS notice.

In this guide, we’ll explain which 1099s Robinhood issues, how to read them, how to report your gains or dividends, and what to do if something looks off. While this article provides general education, it isn’t personal tax advice. For tailored help, consider engaging the services of a professional accountant. 1-800Accountant’s income tax prep services make it easy to file accurately and confidently, so you can focus on your next trade. 

Key Highlights

• Robinhood typically issues a Consolidated 1099 including IRS Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, Form 1099-DIV, Dividends and Distributions, and Form 1099-INT, Interest Income.

• Check your 1099 for accuracy — mismatches with the IRS can cause filing delays.

• Use IRS Form 8949, Sales and other Dispositions of Capital Assets, and Schedule D (Form 1040), Capital Gains and Losses, to report capital gains and losses.

• Learn how wash sale rules may limit deductible losses.

• Keep records of every trade and dividend throughout the year to simplify tax time.

• Most brokerage 1099s are issued in mid-February each year.

What 1099s Robinhood May Issue

Consolidated 1099 Overview

Robinhood provides a Consolidated 1099, which combines several individual forms — typically  Robinhood 1099-B, 1099-DIV, and 1099-INT. This makes it easier to see all your reportable investment income in one place. The consolidated form is usually ready by mid-February.

Each section of the document reports a different type of income or transaction, so you’ll need to understand each to file correctly.

Form 1099-B: Sales and Dispositions

1099-B reports the proceeds from your stock or crypto sales. It lists each sale’s:

• Date acquired

• Date sold

• Cost basis

• Gross proceeds

"Gross proceeds” means the total sale amount before subtracting any trading fees or commissions.

Robinhood may also include Section 1256 contracts (for options and futures) separately. These are reported on IRS Form 6781, Gains and Losses From Section 1256 Contracts and Straddles, which has its own tax treatment.

Forms 1099-DIV and 1099-INT

If you earned dividends or interest on your Robinhood holdings, these appear in the DIV and INT sections of your consolidated statement.

• 1099-DIV reports dividends and capital gain distributions. Box 1a shows total ordinary dividends, while Box 1b lists qualified dividends that may be taxed at lower rates.

• 1099-INT covers any interest you earn, such as from uninvested cash.

Even small amounts count — if you earned over $10 in dividends or interest, Robinhood must issue these forms.

Other Possible 1099s

You may receive IRS Form 1099-MISC, Miscellaneous Information, if you earned other types of income from Robinhood, such as promotional stock awards or referral bonuses. These are generally considered “other income” on your return.

You may also receive materials related to corrections, B-Notices, backup withholding, and mismatches with IRS records.

How to Read and Reconcile Your Robinhood 1099

Review the following to learn how to read Robinhood 1099 and reconcile it. 

Understanding “gross proceeds” vs. your net gain

The 1099-B lists gross proceeds — the total amount from selling a security, not the profit you actually made. Your net long-term capital gain or loss is the difference between what you sold the asset for and what you originally paid. The totals shown on your app’s performance summary may differ slightly due to:

• Fees

• Rounding

• Corporate actions

Aggregation of trades, multiple lots, “Various” acquisition dates

Robinhood aggregates trades when you buy or sell the same security multiple times. If you see “Various” listed under “date acquired,” that’s normal and means the system combined several lots into one summary line.

Spotting Errors and Requesting Corrections

Before filing 1099 taxes on Robinhood, confirm that the following matches your records: 

• Your name

• Social Security Number

• Trade data

If you notice errors, you can request a corrected 1099 directly through Robinhood Support. If the form doesn’t align with your statements, don’t ignore it — discrepancies can lead to an IRS “B-Notice".

How to Report Robinhood Income on Your Tax Return

For Non-Day Traders and Typical Investors

Most casual investors will report Robinhood income on IRS Form 8949 and Schedule D of Form 1040. You’ll list each sale, indicate whether it was short-term or long-term, and calculate total gains or losses.

Short-term gains (assets held for one year or less) are taxed at ordinary income rates, while long-term gains qualify for lower rates.

The line you use (A, B, C, etc.) depends on Robinhood and IRS reporting. If your broker reported the cost basis of your sold assets to the IRS, use the corresponding line.  

If You Qualify as a “Trader”

Frequent, high-volume traders may be considered in the business of trading securities. In that case, the IRS may treat your income as self-employment income, reported on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). This allows you to deduct expenses such as:

• Trading software

• Internet costs

• Home office portion

See 1-800Accountant’s self-employment tax calculator to estimate what you might owe.

Dividends, Interest, and Other “Miscellaneous” Income

Dividends and interest flow directly to your primary return:

• Report dividends from Box 1a of Form 1099-DIV on Form 1040, Line 3b, and qualified dividends on Line 3a.

• Report interest from Box 1 of Form 1099-INT on Form 1040, Line 2b.

• Report 1099-MISC “other income” on Schedule 1, Line 8.

Offsetting losses, wash sale rules, carryovers

If your total capital losses exceed gains, you can deduct up to $3,000 against ordinary income ($1,500 if married filing separately). Remaining losses carry forward to future years.

However, wash-sale rules can limit deductions. A wash sale occurs when you sell a security at a loss and repurchase the same, or substantially identical, one within 30 days. The IRS disallows the immediate loss deduction in that case. Robinhood flags these transactions automatically, but always confirm when reconciling your 1099.

Common Pitfalls and Edge Cases

Review these common pitfalls and edge cases as you prepare to report your Robinhood income. 

• No 1099 received: Even if you didn’t get a form, you may still have taxable income or a taxable event if you sold investments or earned dividends.

• Form mismatches: Ensure your records match the data the IRS receives from Robinhood.

• Options and Section 1256 contracts: Special 60/40 long-term/short-term treatment applies to some futures.

• Crypto transactions: Robinhood now reports crypto gains and losses, but cost-basis reporting can vary. If you transferred crypto in or out, keep detailed records.

• Underreporting: Take action or respond promptly when amending your return or responding to IRS notices of underreported income. 

Timing, Deadlines, and Best Practices

To stay compliant, set reminders for quarterly estimated taxes and filing dates. It's essential to pay quarterly taxes by each deadline and pay taxes for the tax year to fulfill all of your obligations.

Additional tips:

• Keep digital copies of your trade confirmations and monthly statements.

• Use tax software import tools to pull Robinhood data directly.

• If your activity or losses are complex, consider working with a CPA.

Simplify Tax Season with Expert Help

Understanding your Robinhood 1099 doesn’t have to be an overwhelming chore. Once you know how to read the Robinhood tax form, confirm accuracy, and report correctly, you’ll avoid common filing mistakes and potential IRS notices.

If managing 1099s, wash-sale rules, or capital gains feels confusing, you don’t have to go it alone. 1-800Accountant, America's leading virtual accounting firm, connects you with experienced CPAs, EAs, and tax professionals who can handle your filing from start to finish — so you can focus on your financial goals, not tax forms.

Schedule a free 30-minute consultation today to get started.