Can anyone explain section 1D on a 1099 from Robinhood?

Don't panic! What you're looking at in section 1D is likely the "Proceeds" column, which shows the total dollar amount from all your stock sales combined. This is NOT the amount you'll be taxed on. The tax calculation is based on your actual gains (profits), not the total proceeds from sales. For example, if you bought a stock for $500 and sold it for $600, your proceeds would be $600, but your taxable gain is only $100. The 1099 shows both your proceeds and your cost basis (what you paid for the stocks). For tax purposes, the columns that really matter are the ones showing your realized gains or losses - the difference between what you sold your investments for and what you originally paid. This should be much closer to that $8,100 figure you mentioned.

I went through the same panic attack last year! https://taxr.ai literally saved me hours of stress trying to figure out my crypto and stock trades. They analyzed my Robinhood 1099 and explained exactly what I needed to report - turns out section 1D was showing my total sales proceeds (like selling $10k worth of Tesla) not my actual profits (the $500 I made on that Tesla sale). The tool breaks down each line of the 1099 and shows which columns matter for tax purposes. For me, it was actually my realized gains in section 1B I needed to focus on, not the giant number in 1D that almost gave me a heart attack! They even highlighted which transactions might trigger wash sale rules.

I tried taxr.ai after posting that skeptical comment, and honestly I'm impressed. I've been confused about section 1D on my Robinhood 1099 for THREE years now. The tool explained that the $82k number there was just the total value of all stocks I sold, not my profits. My actual taxable amount was only around $5,300. It highlighted exactly which parts of my 1099 matter for tax reporting - mainly the realized gains/losses in sections 1A and 1B. Saved me from making a big mistake. I was about to enter the proceeds amount thinking that was what I needed to report! The interface breaks everything down by transaction and shows which ones are short-term vs long-term capital gains too.

If you're still confused even after figuring out your 1099, and want to talk to an actual IRS agent (I know, terrifying), I had surprisingly good luck with https://claimyr.com after spending 3 days trying to get through to the IRS myself. You can see how it works at https://youtu.be/_kiP6q8DX5c - basically they hold your place in the phone queue and call you when an agent is about to answer. I had specific questions about reporting crypto trades on my Robinhood 1099 that weren't clear from their documentation. Getting direct answers from the IRS gave me peace of mind that I wasn't missing anything important on section 1D or miscalculating my capital gains.

OK I have to admit I was completely wrong. Tried Claimyr yesterday after posting that skeptical comment. I've been trying to get clarification on my Robinhood 1099 for weeks with no luck. They got me through to an actual IRS agent in about an hour while I was watching TV. The agent confirmed exactly what others here said - section 1D shows the total proceeds from ALL my stock sales, not my taxable gains. The IRS agent walked me through exactly which numbers on my 1099 I needed to report (it was the gain/loss columns). Feel kinda stupid for freaking out over that big number now, but at least I know for sure I'm not going to owe taxes on $171k I never made.

Here's a simple breakdown of the main sections on a Robinhood 1099-B: 1A: Short-term transactions with basis reported to the IRS 1B: Short-term transactions with basis NOT reported to the IRS 1D: Proceeds from broker transactions (total sales amount) 1E: Cost basis (what you paid) 1G: Gain or loss (what you're actually taxed on) The large number in 1D is just the total dollar amount of ALL your stock sales combined - like if you bought $1000 of stock and sold it at $1100, then that $1100 goes in 1D, but you're only taxed on the $100 profit.

I used to be a tax preparer and saw this confusion ALL THE TIME. One thing not mentioned yet: check if your Robinhood 1099 has supplemental information pages. They often include a summary that breaks down your actual taxable gains/losses more clearly than the main form. The IRS only cares about your profits/losses, not the total amount of money that moved through your account. The big number in section 1D freaks everyone out, but it's just the sum of all your sales, regardless of whether you made or lost money on those transactions.