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Robinhood - should I expect to receive a tax document?

Personal Finance & Money Asked on April 25, 2021

I started investing last year with a small amount so my dividend earnings for 2020 is only about $5. Robinhood says that my tax document should be available on or before Feb 16. Should I expect to get a tax document from them for such a small amount?

I contacted them via email but haven’t received any response yet. If I am not going to receive a tax document then I won’t have to wait until Feb 16 to file my taxes.

One Answer

From a Robinhood FAQ

You’ll only receive a 1099 tax document from Robinhood if the proceeds from dividends exceed $10, the value of referral stock grants exceed $600, or you sell a position. If you don’t meet any of these criteria, you will not receive a 1099.

So, the minimum is $10 in dividends, but you can still get a 1099 if your dividends were less and you meet one of the other requirements. These are pretty much universal among brokers.

Regardless of whether you receive a 1099-DIV form from RobinHood (or anyone else) or not (on the grounds that the amount is less than $10), you should report all dividend income to the IRS on your tax return, and all the dividend income gets reported in the same place (which is not under "Other Income"). Remember that when you sign your tax return, you are affirming under penalty of perjury that you have declared all your income on the tax return.

Answered by Nosjack on April 25, 2021

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