Yes, Robinhood reports to the IRS. Federal law requires every broker to file information returns on customer activity, and Robinhood follows that rule for stock trades, options, cryptocurrency sales, dividends, interest on uninvested cash, and miscellaneous income like referral bonuses. Your Consolidated 1099 arrives by February 17 each year, and by the time you open it, the IRS already has the same numbers.1Robinhood. Taxes and Forms
Stocks and Options
Any person doing business as a broker must file a return showing each customer’s name, gross proceeds from sales, adjusted cost basis for covered securities, and whether a gain or loss is short-term or long-term.2Office of the Law Revision Counsel. 26 USC 6045 – Returns of Brokers Every stock sale, options expiration, and closing transaction on your Robinhood account produces a record filed with the IRS, whether you made money or lost it. The 1099-B captures the sale date, total proceeds, your purchase price, and the holding period.
The IRS uses that data to cross-check what you put on your return. If the numbers don’t match, expect a notice. The accuracy-related penalty specifically flags income shown on an information return that doesn’t appear on the taxpayer’s return.3Internal Revenue Service. Accuracy-Related Penalty There is no scenario where Robinhood reports a transaction and you can safely leave it off.
Cryptocurrency
For transactions on or after January 1, 2025, Robinhood reports crypto sales on Form 1099-DA rather than the 1099-B used for stocks.4Robinhood. Crypto Tax FAQ For the 2025 tax year, brokers report gross proceeds from crypto dispositions. Starting with 2026 transactions, brokers must also report cost basis on certain digital assets, giving the IRS a fuller picture of gains and losses.5Internal Revenue Service. Final Regulations and Related IRS Guidance for Reporting by Brokers on Sales and Exchanges of Digital Assets
Crypto rewards from Robinhood promotions land on Form 1099-MISC once they reach $600 or more in a calendar year. Robinhood uses the fair market value at the time you received the reward as your cost basis for a later sale.4Robinhood. Crypto Tax FAQ
Cryptocurrency received through an airdrop following a hard fork is taxable too. The IRS treats it as ordinary income equal to the fair market value when you gain control of the new coins, and your cost basis equals whatever amount you reported as income.6Internal Revenue Service. Frequently Asked Questions on Virtual Currency Transactions Free tokens are not tax-free.
Dividends, Interest, and Referral Bonuses
Robinhood files Form 1099-DIV when dividends reach at least $10 during the tax year.7Internal Revenue Service. Instructions for Form 1099-DIV The form separates qualified from ordinary dividends, which matters because qualified dividends are taxed at long-term capital gains rates rather than your ordinary rate. Interest earned on uninvested cash, including the cash sweep available to Gold subscribers, follows the same $10 threshold and appears on Form 1099-INT.8Internal Revenue Service. Instructions for Forms 1099-INT and 1099-OID
If you hold international stocks or ADRs with foreign tax withheld, that amount shows up in Box 7 of the 1099-DIV.7Internal Revenue Service. Instructions for Form 1099-DIV You can claim a foreign tax credit, which directly reduces your U.S. tax rather than just your taxable income.
Referral bonuses and rewards from educational or promotional programs are reported on Form 1099-MISC when they total $600 or more in a calendar year.4Robinhood. Crypto Tax FAQ They count as ordinary income taxed at your regular rate. Amounts under $600 are still taxable; Robinhood just doesn’t have to file a form for them.
Retirement Accounts
Robinhood offers traditional and Roth IRAs, and the reporting differs from a taxable account. Contributions are reported to the IRS on Form 5498, which shows what you put in during the year and through April 15 of the following year.9Internal Revenue Service. Form 5498 IRA Contribution Information For 2026, the IRA contribution limit is $7,500, or $8,600 if you’re 50 or older.10Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026, IRA Limit Increases to $7,500
Trades inside an IRA don’t generate a 1099-B or 1099-DA, because gains within retirement accounts aren’t taxed in the year they occur. Tax comes into play when you take a distribution, which Robinhood reports on Form 1099-R. Early withdrawals before age 59½ generally trigger a 10% additional tax on top of regular income tax, with exceptions for disability, certain medical expenses, and first-time home purchases up to $10,000.11Internal Revenue Service. Retirement Topics – Exceptions to Tax on Early Distributions
Getting Your Tax Documents
Robinhood emails you when your Consolidated 1099 is ready, with a deadline of February 17 for the 2025 tax year.1Robinhood. Taxes and Forms The single PDF bundles the 1099-B, 1099-DA, 1099-DIV, 1099-INT, and 1099-MISC as applicable to your account.12Robinhood. How to Read Your 1099 You can pull it from the tax documents area of the app or website, either as a PDF or as a data file that imports into TurboTax or H&R Block.
The information feeds Schedule D and Form 8949 on your federal return. Schedule D summarizes total capital gains and losses; Form 8949 lists individual transactions with proceeds, cost basis, and any adjustments.13Internal Revenue Service. Instructions for Form 8949 The filing deadline for 2025 returns is April 15, 2026.14Internal Revenue Service. IRS Announces First Day of 2026 Filing Season Filing late without an extension triggers a failure-to-file penalty of 5% per month on the unpaid balance, up to 25%.15Internal Revenue Service. Failure to File Penalty
What Can Trip You Up
Wash Sales Across Accounts
If you sell a stock at a loss and buy a substantially identical one within 30 days before or after, the IRS disallows the loss.16Office of the Law Revision Counsel. 26 USC 1091 – Loss From Wash Sales of Stock or Securities The full window is 61 days. Robinhood tracks wash sales inside your account and adjusts your 1099-B, and the disallowed loss is added to the cost basis of the replacement shares, so you recover it when you eventually sell those.
The rule applies across all your accounts, though. If you sell a stock at a loss in Robinhood and buy the same stock in a different brokerage or your IRA within the window, the loss is still disallowed, and Robinhood won’t know. That adjustment falls on you, on Form 8949.
As of 2026, the wash sale rule does not apply to cryptocurrency. The statute covers “stock or securities,” and the IRS classifies digital assets as property.16Office of the Law Revision Counsel. 26 USC 1091 – Loss From Wash Sales of Stock or Securities
Missing Cost Basis After Transfers
If you transferred investments into Robinhood from another brokerage, cost basis information may be incomplete. The sending brokerage has up to 15 calendar days after the transfer settles to transmit basis data, and if that never arrives, your 1099 will show missing basis.17Robinhood. Transfer Your Assets In When the 1099 shows an incorrect basis for a transaction where basis was reported to the IRS, you can fix it on Form 8949 with adjustment code “B” in column (f), entering the basis as reported and adjusting in column (g).18Internal Revenue Service. Instructions for Form 8949 Keep your own purchase records for transferred positions.
No Withholding on Gains
Robinhood doesn’t withhold taxes on investment gains the way an employer does on a paycheck. If you expect to owe $1,000 or more beyond what other withholding covers, you should be making quarterly estimated payments, due April 15, June 15, September 15, and January 15.19Internal Revenue Service. Pay As You Go, So You Won’t Owe A strong year of trading can produce a five-figure tax bill in April plus an underpayment penalty on top.20Internal Revenue Service. Underpayment of Estimated Tax by Individuals Penalty
Holding Period Matters
Assets sold within one year of purchase produce short-term gains taxed at your ordinary income rate, which runs as high as 37%. Assets held longer than a year qualify for long-term rates that top out at 20%. Your 1099-B and 1099-DA flag which is which based on the holding period.2Office of the Law Revision Counsel. 26 USC 6045 – Returns of Brokers Frequent trading is where this bites: buying and selling the same stock within weeks means every profit is short-term.
Your State Probably Has the Data Too
Through the IRS Combined Federal/State Filing Program, the same 1099 data filed with the IRS is forwarded to participating state tax agencies. The program covers Forms 1099-B, 1099-DIV, 1099-INT, 1099-MISC, and others.21Internal Revenue Service. Combined Federal/State Filing (CF/SF) Program Most income-tax states participate. If your state taxes investment income, expect to report the same numbers there.