Key takeaways
- Yes, Robinhood reports to the IRS. Stocks and options go on a consolidated Form 1099-B, and crypto sales and exchanges go on the new Form 1099-DA starting with the 2025 tax year.
- Crypto and stock reporting are not the same. The 1099-B has years of cost basis tracking behind it. The crypto 1099-DA for 2025 generally reports proceeds only and adds basis for covered assets in 2026.
- Transfer history matters. Robinhood Crypto historically could not be withdrawn to an external wallet, then added the Robinhood Crypto wallet. That history shapes how basis is tracked.
- The 1099-DA can overstate gains. Crypto transferred into the wallet often lands with no cost basis, so the form can report your full sale price as gain unless you fix it.
Robinhood is unusual in this lineup because it is primarily a stock brokerage that also offers crypto. For taxes, that dual nature is the whole story: the same account produces a polished, basis-complete stock 1099-B alongside a crypto 1099-DA that follows newer and looser rules. Add in Robinhood Crypto's history (no external withdrawals at first, then a dedicated crypto wallet) and you get a platform where the stock side is easy and the crypto side needs care. This guide covers what Robinhood reports to the IRS, how crypto differs from stocks, how the crypto wallet affects basis, and where Robinhood crypto users lose money to avoidable mistakes.
Does Robinhood report crypto to the IRS?
Yes. Robinhood is a US broker and reports customer activity to the IRS. For the 2026 filing season and beyond, the forms that matter are:
- Consolidated Form 1099-B for stocks and options, with cost basis reported on covered securities.
- Form 1099-DA, the new digital-asset form, for your Robinhood Crypto sales and exchanges. It began with the 2025 tax year (forms issued in early 2026).
- Form 1099-MISC if you received $600 or more in certain reward or promotional income.
Robinhood collects full KYC identity data, so each form is tied to your Social Security number and a copy goes to the IRS. The practical takeaway: both your stock and crypto activity are visible to the IRS, so your return needs to line up on both sides.
Crypto vs. stock: why Robinhood reporting differs
The capital gains math is identical for stocks and crypto: proceeds minus cost basis, taxed short-term or long-term by holding period. What differs is the maturity of the reporting behind each.
| Feature | Robinhood stocks (1099-B) | Robinhood crypto (1099-DA) |
|---|---|---|
| Form | Consolidated 1099-B | New 1099-DA (from 2025) |
| Cost basis reported | Yes, mature and reliable for covered securities | 2025: proceeds only. 2026+: basis for covered assets |
| Transfers in/out | Long-supported via ACATS, basis often follows | Historically limited, then enabled via the crypto wallet |
| Wash sale rule | Applies to stocks | Generally not applied to crypto under current rules |
The headline is that you can usually trust the stock 1099-B with little adjustment, but the crypto 1099-DA needs the same scrutiny you would give any exchange form: check whether cost basis is present and correct, especially for coins that moved.
The Robinhood Crypto wallet and transfer history
For years, Robinhood Crypto worked like a closed garden: you could buy and sell crypto, but you could not withdraw it to an external wallet. That kept basis simple (everything was acquired and disposed of on Robinhood) but limited what you could do with your coins. Robinhood later launched the Robinhood Crypto wallet, enabling deposits and withdrawals of supported assets to and from external wallets.
That change matters for taxes. Moving crypto into or out of your own wallet is not a taxable event, but the cost basis must travel with the coins because Robinhood stops tracking it once the asset leaves the platform. Crypto you transfer into the Robinhood wallet from elsewhere arrives with no basis attached, which is exactly the setup that produces an overstated 1099-DA later.
How Robinhood crypto transactions are taxed
Every crypto action on Robinhood falls into one of two buckets: a capital gains event (you disposed of crypto) or an ordinary income event (you earned crypto). Here is how the common ones map.
| Robinhood action | Taxable? | Treatment |
|---|---|---|
| Buy crypto with USD | No | Not taxable. Sets your cost basis. |
| Sell crypto for USD | Yes | Capital gain or loss (proceeds minus basis). |
| Trade one coin for another | Yes | Disposal of the coin sold; capital gain or loss. |
| Reward or promo crypto | Yes | Ordinary income at FMV when received; sets basis. |
| Transfer to your own wallet | No | Not taxable; basis and holding period carry. Network fee is a tiny disposal. |
| Sell a stock (for comparison) | Yes | Capital gain or loss on 1099-B; wash sale rule applies. |
Robinhood crypto rewards and promotions
Robinhood has run various reward and referral promotions that pay in crypto or stock. When you receive crypto as a reward, it is generally ordinary income at its fair market value on the date you gain control of it, and that value becomes your cost basis. If those rewards total $600 or more, you may see them on a Form 1099-MISC, but smaller amounts are still reportable even without a form. When you later sell the rewarded crypto, you have a separate capital gain or loss measured from that basis.
Short-term vs. long-term rates
For capital-gains events, holding period sets the rate, and this works the same for crypto and stocks. Hold one year or less and gains are short-term, taxed at your ordinary rate (10% to 37%). Hold more than a year and gains are long-term, taxed at 0%, 15%, or 20%. Reward crypto is taxed at ordinary rates when received, and its value at receipt becomes the basis for a later sale. High earners may also owe the extra 3.8% Net Investment Income Tax, and most states tax gains as ordinary income. One difference worth noting: the wash sale rule that limits stock loss harvesting generally does not apply to crypto under current rules.
Holding stocks and crypto in one Robinhood account?
Mixing a clean stock 1099-B with a newer crypto 1099-DA and wallet transfers is exactly where Robinhood returns go wrong. We reconcile both sides into clean, CPA-ready figures.
See how it worksHow to get your Robinhood crypto tax documents
Pulling the right files is step one of an accurate return.
- Open the Tax Center. Log in to Robinhood and open the Tax Center from your account menu to see all documents for the year.
- Download both 1099s. Grab the consolidated 1099-B for stocks and the separate Robinhood Crypto 1099, now reported on Form 1099-DA.
- Export the crypto CSV. Export your full Robinhood Crypto transaction history so every buy, sell, and trade is captured.
- Account for wallet transfers. If you moved crypto into or out of the Robinhood Crypto wallet, record those transfers so basis follows the coins.
- Reconcile across every wallet. Combine Robinhood with all other exchanges and self-custody wallets so transfers, basis, and income are complete before filing.
How to report Robinhood crypto on your tax return
Once your data is reconciled, Robinhood activity lands on a few IRS forms:
- Form 8949 lists every disposal (each crypto sale and trade, and each stock sale) with dates, proceeds, cost basis, and gain or loss.
- Schedule D totals those gains and losses, split into short-term and long-term.
- Schedule 1 carries reward or promotional income as "Other income."
- The Form 1040 digital-asset question must be answered "Yes" if you sold, exchanged, or received crypto.
The $1,500 stock gain is long-term off the 1099-B, the $700 crypto gain is short-term off the 1099-DA, and the $60 reward is income on Schedule 1. Same return, three different reporting paths.
Common Robinhood crypto tax mistakes
These are the errors that quietly cost Robinhood users money or invite IRS letters.
- Assuming crypto is as clean as the stock 1099-B. The crypto 1099-DA is newer and more likely to carry missing or zero basis, especially on transferred-in coins.
- Ignoring wallet transfers. Moving crypto in or out is not taxable, but if basis does not follow the coins, gains get overstated later.
- Forgetting reward crypto. Promotional crypto is income at receipt even when it is small and never hits a 1099-MISC.
- Treating crypto-to-crypto trades as non-events. Every coin-for-coin trade is a disposal and belongs on Form 8949.
- Accepting a $0 cost basis. For transferred-in assets, the 1099-DA may show proceeds with no basis, and the IRS then treats the whole sale as gain.
The 2025/26 Crypto Tax Guide. Built by former Big 4 accountants.
A printable, step-by-step guide and checklist to reconcile every coin and wallet, recover missing cost basis, and file accurately before the deadline.
- Form 8949, Schedule D, and Schedule 1 walkthroughs
- How to handle staking, DeFi, NFTs, and lost coins
- The $0-basis 1099-DA trap (and how to avoid it)
- FBAR, Form 8938, and foreign exchange reporting