Correct tax forms to expect from Robinhood for international investor

Thank you for the detailed explanation! That makes more sense now. Do you know if I need to specifically request the transaction history from Robinhood or is that something they'll provide automatically? And since I've made trades throughout the year, should I be concerned about any quarterly estimated tax payments I might have missed?

You should be able to download your transaction history directly from your Robinhood account - look for a section called "Statements & History" or "Account Documents." This is typically available year-round, not just at tax time. Some platforms call it "Trade Confirmations" or "Account Activity." Regarding estimated tax payments, as an F1 student, you generally don't have to make quarterly estimated tax payments on capital gains unless your tax liability is expected to be substantial (typically over $1,000 after accounting for any withholding). Since this is your first year trading, you likely wouldn't have known in advance what your tax situation would be. The IRS often provides some leniency for first-time situations, but going forward, if you continue trading and realize significant gains, you may need to consider quarterly payments.

Did it handle the reporting requirements correctly? My biggest fear is messing up the forms and getting some kind of penalty. Did you have any issues with the IRS after using it?

I'm skeptical about using any automated tool for international tax situations. Did you have the results reviewed by an actual tax professional who specializes in nonresident taxation? These visa+trading combinations get really complicated with treaty considerations.

It definitely handled the reporting requirements correctly for me. I was worried about the same thing, but the forms it generated were accepted without any issues. No letters from the IRS or any problems, and I've been monitoring my tax account online just to be safe. As for having it reviewed, I actually did take the completed forms to an international student tax specialist at my university before filing, and they confirmed everything was done correctly. The specialist was impressed and said it covered all the right bases for my situation. What's nice is that taxr.ai explains the reasoning behind each calculation, so you can understand why certain income is or isn't taxable based on your visa status.

How does this actually work? I'm confused why I'd need a service to call the IRS - can't I just call them directly? And did they actually know the answers to international student tax questions? I've heard horror stories about IRS agents giving incorrect information.

This sounds like a scam. Why would anyone pay a service to call the IRS when you can just keep calling yourself? I've never heard of this and it sounds suspicious. What's the catch here?

You definitely can call the IRS yourself, but the problem is getting through. When I tried calling directly, I spent over 3 hours on hold and then got disconnected. The IRS international taxpayer line is notoriously difficult to reach - they're severely understaffed. Claimyr basically waits on hold for you and then calls you when an actual agent picks up, so you don't waste hours of your day listening to hold music. As for the knowledge level, I specifically asked to speak with someone from the international taxpayer service center, and they were very knowledgeable about F1 visa tax situations. I think it's important to be connected to the right department - a general IRS agent might not know all the nuances of international tax treaties and nonresident taxation.

Thanks for the timeline info! I'm getting nervous since it's already late March and I haven't received my 1042-S yet. Is there a specific place in the Robinhood app/website where these tax documents appear? And do you recommend any specific tax software that handles international student investing well?

In the Robinhood app, go to Account > Statements & Documents > Tax Documents. That's where your 1042-S will appear once generated. Don't panic yet - they often come in late March or even early April for international accounts. I received mine on March 28th last year. For tax software, I've found that most mainstream options (TurboTax, H&R Block) don't handle nonresident situations well. I've had better luck with Sprintax which is designed for international students, but even then I had to manually enter all my trading data. If you have more than a few trades, honestly working with a tax professional who specializes in nonresident taxation is worth the money. Campus tax services for international students can also help if your university offers that.

That's actually correct for your situation! F1 students typically become "resident aliens" for tax purposes after 5 years in the US (under the Substantial Presence Test). Since you've been here for 6 years, you're likely filing taxes as a resident alien now (Form 1040 instead of 1040NR), which is why you received a 1099 instead of a 1042-S. This is a common transition that affects many international students who stay in the US for their entire degree program. As a resident alien, you're taxed more like a US citizen, which means all your worldwide income is subject to US tax and you receive the standard US tax forms.

Thanks for explaining! I had no idea there was a 5-year rule for tax purposes. So I should be fine using the 1099 and filing with regular Form 1040 then? I've been doing that but was worried I was making a mistake after reading this thread!

This is really helpful advice! I'm also new to all of this and feeling pretty overwhelmed. When you mention creating a spreadsheet with all your trades, did you have to manually enter everything or is there a way to export this data directly from Robinhood? And how did you handle wash sale rules - do those apply to international students on F1 visas the same way they do for US residents?

You can export your trading data directly from Robinhood! Go to Account > Statements & History and look for "Account Statements" - they provide monthly and annual statements that include all your transaction details. You can also download individual trade confirmations if needed. Regarding wash sale rules - yes, they do apply to F1 students the same way they apply to US residents when you're trading US securities. The wash sale rule disallows losses if you repurchase the same or "substantially identical" securities within 30 days before or after the sale. This can get tricky if you're doing frequent trading of the same stocks. The good news is that most tax software (including the international student-focused ones like Sprintax) will calculate wash sale adjustments automatically if you input your data correctly. Just make sure when you're preparing your spreadsheet that you include the acquisition dates and costs for all positions - this is crucial for proper wash sale calculations. One tip: if you've been doing a lot of day trading or frequent buying/selling of the same stocks, definitely consider getting professional help. Wash sale rules can significantly complicate your tax situation and it's easy to make costly mistakes.

This is such valuable advice about the substantial presence test! I had no idea that could change my tax status over time. Could you clarify what you mean by "extended periods including previous years"? I've been in the US continuously since starting my program in 2022, so I'm wondering if I need to be calculating days differently than I thought. Also, when you mention setting aside money for taxes on trading gains - do you have a rough rule of thumb for what percentage to save? I've heard different numbers and want to make sure I'm not caught off guard like you were!

The substantial presence test is calculated using a weighted formula over three years: current year days count as 1, previous year days count as 1/3, and two years ago count as 1/6. You're generally considered a resident alien if this total equals or exceeds 183 days. So even if you haven't been here 5 full years, you could still transition to resident status earlier than expected if you've had substantial presence. For setting aside money, I typically save 15-25% of my realized gains, depending on the size. Since we don't get the benefit of long-term capital gains rates as nonresidents (most gains are taxed as ordinary income), and depending on your tax treaty, you could be looking at rates around 10-22% plus potential state taxes. It's better to overestimate and get a refund than to scramble for tax money in April! Also worth noting - if your trading gains are substantial (over $1,000 in tax liability), you may need to make quarterly estimated payments to avoid underpayment penalties. This caught me completely off guard in my second year when I had a really good trading year.

This is incredibly helpful information, especially the point about treaty benefits! I had no idea that the W8-BEN could include treaty claims that might reduce my withholding. When you mention requesting a copy from Robinhood, is this something I should do before filing my taxes to make sure I'm claiming all the benefits I'm entitled to? Also, the "effectively connected income" concept is really concerning - I've been doing maybe 10-15 trades per month, nothing crazy, but now I'm worried that could be considered frequent enough to trigger these rules. Is there a specific threshold or test that determines when trading becomes a "US trade or business"? I definitely don't want to accidentally subject all my gains to US tax when I might otherwise have treaty protection. And you're absolutely right about state taxes - I'm in California and completely forgot that might be a separate issue. Do you have any resources you'd recommend for understanding state obligations for international students, or is this something I should definitely handle through a professional?

Yes, definitely request a copy of your W8-BEN from Robinhood before filing! You want to see exactly what treaty benefits were claimed (or if none were claimed) so you can determine if you need to file for any refunds of over-withheld taxes. Sometimes brokers don't apply treaty benefits correctly, and you could be missing out on reduced withholding rates. Regarding the "effectively connected income" threshold - there's no bright-line rule unfortunately. The IRS looks at factors like frequency of trades, time spent on trading activities, and whether you're acting more like a trader than an investor. 10-15 trades per month could potentially trigger scrutiny, especially if you're doing short-term trades or day trading. The key is whether your activity rises to the level of conducting a trade or business rather than just investing. For California specifically, as a nonresident you're generally only taxed on California-source income. Your trading gains on stocks wouldn't typically be California-source income unless you're considered to be conducting business in California. However, any dividends from California-based companies might be subject to California tax. The Franchise Tax Board has specific guidance for nonresidents, but honestly, given the complexity of your situation with federal tax treaties AND state issues, I'd strongly recommend consulting with a tax professional who handles both international and California tax matters. Don't try to navigate this alone - the potential penalties for getting it wrong aren't worth the cost savings of DIY preparation.