It depends on specifically why you received the 1099-MISC from Robinhood. I suggest reporting in the Less Common Income area so that it does not trigger self-employment obligations.
If the broker provided ONLY Form 1099-MISC, and you received it for free:
This can be handled in the Less Common Situations. To enter in TurboTax, follow these steps:
- From the left menu, select Federal
- Wages & Income scroll all the way down to Less Common Income and click Show More
- Select the last listed option for Miscellaneous Income 1099-A, 1099-C, click Start
- Next, select the last listed option Other Reportable Income
- Did you receive any other taxable income, click yes
- Other Taxable Income: Enter your description and the amount and click Continue and Done. Disregard the comment "Do not enter income from Form 1099-MISC here" because this is meant to guide taxpayers reporting typical 1099-MISC income. Your case is less common and this is how you can report it in TurboTax.
If the broker..
- gave you stock
- that you subsequently sold
- but Robinhood reported it to you on Form 1099-MISC and
- if you had basis in it, meaning you paid Robinhood something in exchange for this stock
then follow the link to read what TurboTax Expert DavidS127 advised.
When you receive shares of stock, not cash, then it should be reported as a stock transaction, even though you received Form 1099-MISC.
Secondly, in this scenario, to be in compliance with the IRS and report the Form 1099-MISC you received, you need to report it as "an in and out." Do this:
- Follow Steps 1-6; for the description write: Robinhood Form 1099-MISC as received
- Repeat Steps 1-6 and enter the income amount as a negative
- For the second description write: Robinhood Form 1099-MISC reported on Schedule D
If this is your scenario, the instructions above will...
- get the proceeds to Schedule D where they belong,
- prevent the proceeds from being considered self-employment,
- prevent the proceeds from being double taxed.
