Confused about my Robinhood 2023 tax form for crypto purchases

Thanks for the explanation! So if I bought crypto in 2022 but then sold some in 2023, would that appear on my 2023 tax forms from Robinhood? And do I need to keep the purchase documents for when I eventually do sell?

Yes, if you bought crypto in 2022 and sold it in 2023, the sale would appear on your 2023 tax forms from Robinhood. The form would show your cost basis (what you paid), the proceeds from the sale, and the resulting gain or loss that you'd need to report on your tax return. You should definitely keep all purchase records and transaction history. This documentation is crucial for accurately calculating your cost basis when you do eventually sell. Robinhood should track this for you, but it's always good practice to maintain your own records as a backup.

Does it work with other platforms too? I've got crypto spread across Coinbase and Binance as well as Robinhood and it's a nightmare trying to figure out what's taxable.

I'm skeptical about these tax tools. How accurate is it with complex situations? Like if you've done staking or received airdrops? Those have weird tax implications.

It definitely works with other platforms! I had stuff on Coinbase and Kraken too, and it consolidated everything seamlessly. You can either connect your accounts directly or upload the tax documents/CSV files from each platform. As for complex situations, it handles those really well actually. I did some staking last year and the tool correctly identified it as ordinary income at the fair market value when received. It also tracks airdrops, mining rewards, and even those confusing DeFi transactions. The explanations it provides for each category really helped me understand why certain crypto activities are taxed differently.

Wait how does that even work? I thought the IRS phone system was impossible to get through. Does it just auto-dial for you or something?

Sounds like a scam tbh. No way this actually works. The IRS is deliberately understaffed to make it impossible to get help. I've tried calling about my crypto tax questions for months with no luck.

It's not auto-dialing - that wouldn't work with the IRS system. Instead, they use a proprietary system that secures your place in line and monitors it. When you're getting close to speaking with an agent, they call you so you can take over the call. It's completely legitimate. The reason it works is because they've figured out the optimal times to call and how to navigate the complex IRS phone tree efficiently. You don't have to sit around listening to hold music for hours - you just go about your day until they notify you that an agent is about to be available.

I've had the best experience with TaxAct for crypto reporting. TurboTax has improved but still struggles with some of the more complex crypto situations like liquidity mining or certain DeFi transactions. If you have straightforward buying and selling, most tax software will handle it fine. But if you're into more advanced crypto activities, I'd recommend either using a specialized crypto tax calculator first (like CoinTracker or Koinly) to generate the necessary forms, then importing those results into your tax software.

What tax software do you recommend for handling crypto? I've heard TurboTax messes it up sometimes.

I've had the best experience with TaxAct for crypto reporting. TurboTax has improved but still struggles with some of the more complex crypto situations like liquidity mining or certain DeFi transactions. If you have straightforward buying and selling, most tax software will handle it fine. But if you're into more advance

This is correct but keep in mind Robinhood also reports to the IRS, so make sure what they told you matches what they actually reported. Sometimes companies say one thing to customers but send different info to the IRS.