It depends. Please see this article about how to handle Robinhood issuing you Form 1099-MISC for stock.
You should not pay self-employment tax on this income. If you sold shares, then you need to:
- Report the Form 1099-MISC as received in Other Income (see the link for steps)
- Report the sale of the shares on Schedule D in the investments section (see the link for the steps).
- If the Form 1099-MISC is the amount you paid for the stock, this is the same value you would report as Cost Basis.
- The Form 1099-B would likely only report the Sale with the Cost Basis as -0-. Use the amount in Form 1099-MISC as your Cost Basis since you already reported the amount on Form 1099-MISC.
- If you didn't do that, then you would pay tax from Form 1099-MISC, and pay tax again on the full gain.
- By entering Form 1099-MISC as the cost basis, you would:
- properly only pay tax on the difference between the amount on Form 1099-MISC and the amount received for the shares when they were sold.
