Are you wondering about the consequences, if you do not file Robinhood taxes? If yes! Then you have landed at the right place.
In this article, you will learn about the consequences of not filing the Robinhood taxes and a step-by-step guide on how you can get your Robinhood tax document 1099 B.
By the end of this article, you will also learn how much do you have to make to file taxes on Robinhood? But before jumping deeper to the section, let’s understand why it is important to file taxes on Robinhood followed by its consequences.
What Happens If You Don’t File Robinhood Taxes?
In the worst scenario, you will be penalized if you do not file the tax as per your income slab. What will happen is- The department of the Internal Revenue system will consider your whole transactions as your benefit and bill you tax according to all transactions.
Remember, the virtual bills are always high that will need to be borne. After that, a certain sum of money is a penalty that you will have to pay too.
To avoid these consequences, file taxes before the due date with your actual gains.
How To Get My Robinhood 1099 B?
If you want to get your tax document, you can follow the mentioned steps below:
- Click on the Account icon appearing at the right corner at the bottom.
- Then go to the Statements & History option.
- Click on Tax Documents.
Note: If you want to download large documents then prefer the web platform of Robinhood, it would work better.
Also Read: Does Robinhood Report to IRS?
How To Get Tax Documents If Your Robinhood Account Is Closed?
If your account is closed and still want to get your tax document of 1099, you can follow the mentioned steps below.
Step 1: Download Robinhood App
Go to the play store or Appstore and Download the Robinhood application
Step 2: Log in to Your Robinhood Account
Login to your Robinhood account using credentials
Step 3: Click Account Icon
Click on the Account icon appearing at the bottom right side of your smartphone
Step 4: Click Investing
Click on Investing and scroll down to reach Tax documents
Step 5: Tap on Tax Document
Click on the Tax Document. you will able to get your tax documents
Note: if you are not able to access your tax document you can do the following things.
- Refresh the procedure by logging out and logging in again in the application.
- You can Uninstall and install the application
- Make sure you are doing these procedures in the updated version of the application.
- If still the issue is persistent, you can submit a service request for document 1099 B.
Why Does Robinhood Send Tax Forms So Late?
As per the Robinhood notification, the user needs to wait for the tax forms till 18 February. The Robinhood wants you to wait for some time because their team needs to correct their forms.
If a user file returns with incorrigible information then the user will need to revise your tax return.
Do I Have To Wait For 1099 To File Taxes?
Yes, you may have to wait till mid of February for 1099 to file taxes. This is purely because the team needs some time to fix issues with the forms.
Also Read: Robinhood Business Model | How Robinhood Make Money?
How Much Do You Have To File Taxes On Robinhood?
If you make more than $600 in free stocks on Robinhood, you will need to file taxes.
How To Avoid Capital Gains Tax On Robinhood?
You can avoid capital gains taxes by Managing the tax impact while investing is always a good idea. Following are some ways to avoid or minimize the capital gains taxes on Robinhood.
1. Work Your Tax Bracket
If you think that the long-term capital gains are taxed at minimum rates then you will be pushed into a maximum overall tax bracket as the tax department will count capital gains as a part of AGI.
If your income is near the upper end of the tax bracket, it may compel you to consider bunching deductions into an ongoing year which will keep those earnings taxed at possibly higher rates.
2. Use Of Tax-Loss Harvesting
You can use tax-loss harvesting tools to offset the effect of capital gains from other stocks’ sales. It is an effective tool used by many investors to sell ETFs, mutual funds, or stocks intentionally.
3. Donate Your Stocks
You can also get tax benefits by donating your stock to any charity. It will be beneficial for you because you will not be likely responsible to pay taxes on the capital gains due to your increased share values.
Besides these main three ways, you have several other ways to avoid capital gain tax on Robinhood like buying and holding qualified small business shares, reinvesting in any opportunity funds. Or you can also hold it until you die.
Why Is Robinhood Asking For Tax Status?
As per the Robinhood policy, it asks its users to show their tax information during account opening to avoid having to charge backup withholding.
It also notifies if there will be an issue in its users’ certification that needs to be corrected.
Does Robinhood Crypto Get Taxed?
Yes, Robinhood cryptos are taxed. But remember, Only cryptos that you have sold are taxable. Suppose you had a worse year, your losses are more than your gains, then you can decrease up to $3,000 from the taxable income.
To Sum Up
File your Robinhood taxes before the due date to avoid any penalties, if you make above $600 in free stocks.
You can download your tax document by following the procedures above in a situation even if your account is deleted. If you are looking at 1099 B then please wait for mid-February.
