Can anyone explain section 1D on a 1099 from Robinhood? Confused about reported amount

The number in section 1D on your 1099 from Robinhood is likely your gross proceeds, which represents the total sales price of all securities you sold during the year. This is NOT the amount you'll be taxed on. What matters for tax purposes is the difference between your proceeds (what you sold investments for) and your cost basis (what you paid for them). That difference is your capital gain or loss, which is what gets taxed. So if your actual profit was around $8,000, that's what you'll pay taxes on, not the $165,000 figure. Look for the section that shows your "net" gain or loss - that's the important number. Section 1D is just showing the total amount of all your sales transactions, not your taxable amount. Think of it like if you bought a collectible for $100 and sold it for $120, your proceeds would be $120, but your taxable gain is only $20.

OMG I had this EXACT same panic attack last year! I discovered this amazing service called taxr.ai (https://taxr.ai) that saved me so much stress with my investment tax forms. I uploaded my Robinhood 1099 and it explained every section, including that confusing 1D part. It confirmed that the huge number was just my total proceeds (all sells added together) and calculated my actual taxable amount automatically. The thing that really helped was how it broke down all those transactions and showed me exactly what numbers matter for tax purposes. Honestly before using it I was convinced I somehow owed taxes on money I didn't even have!

I tried taxr.ai after seeing it mentioned here and I have to admit I was wrong to be skeptical. It actually did identify all my wash sales correctly, even the tricky ones where I bought options related to stocks I had sold at a loss. What impressed me most was how it explained section 1D (which was my original confusion too) and broke down exactly what parts of my 1099 actually affect my tax bill. Saved me from a lot of unnecessary stress about owing taxes on the full proceeds amount. I'm definitely using it again next year since I've been trading a lot more in 2024.

If you're still confused after getting help understanding your 1099, I'd recommend trying to talk directly with the IRS. I know it sounds awful, but I used this service called Claimyr (https://claimyr.com) and they actually got me through to an IRS agent in about 15 minutes when I had questions about my investment income. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c I was stuck in a similar situation with a large proceeds amount on my 1099 and wasn't sure if my interpretation was correct. The IRS agent walked me through exactly what lines matter for tax purposes and confirmed I only needed to pay tax on the gains, not the gross proceeds. Totally worth it for the peace of mind.

I need to publicly eat my words here. After calling BS on Claimyr in my previous comment, I decided to try it because I was desperate to resolve my Robinhood 1099 questions. I got connected to an IRS agent in about 12 minutes. The agent confirmed exactly what others here have said - section 1D is just gross proceeds (total of all sales) and NOT what you're taxed on. They walked me through exactly which boxes on the 1099 I needed to focus on for my tax return. I've been stressing for weeks over potentially owing taxes on like $90k when my actual gains were only about $3,500. Huge relief to get official confirmation from the IRS directly.

Another thing to look for on your 1099 is whether all your transactions have cost basis reported to the IRS. I had an issue last year where some of my older stock purchases didn't have cost basis reported (they were from before 2011 when reporting requirements changed). If you see any transactions marked as "basis not reported to the IRS" or something similar, you'll need to dig up your purchase records and calculate the gains yourself. Those transactions will require extra attention on Form 8949.

Does anyone know how wash sales are represented on the Robinhood 1099? I did some frequent trading of the same stocks last year and I'm concerned about how to handle it correctly.

Just wanted to chime in as someone who went through this exact same panic last year! That section 1D number is definitely just your total proceeds from all sales - NOT what you'll owe taxes on. I had a similar situation where my 1099 showed like $200k in proceeds but my actual taxable gains were only around $12k. The key thing to remember is that the IRS expects to see these big numbers because they represent ALL the money that moved through your account from sales. What you actually pay taxes on is the difference between what you sold stocks for and what you originally paid for them (your cost basis). Make sure to look for the sections that show your net gains/losses - that's the number that matters for your tax return. And definitely keep all your records in case you need to verify any cost basis calculations later!