First time filing taxes with stock sales - confused about Form 8453 requirements

When you're dealing with stock sales, Form 8453 isn't typically required anymore unless you have specific supporting documents that can't be e-filed. Most tax software, including FreeTaxUSA, electronically transmits all your stock transaction information directly to the IRS. What's happening is that the information from your 1099-B from Robinhood is being entered into Schedule D and Form 8949 (for reporting capital gains and losses). As long as you've accurately entered all the information from your 1099-B into FreeTaxUSA, including the purchase dates, sale dates, cost basis, and proceeds for each transaction, you should be good to go. The only time you might need Form 8453 is if you have supporting documents that can't be electronically filed. For typical stock transactions where the broker (Robinhood) has reported everything to the IRS on a 1099-B, you don't need to submit anything else.

After struggling with my own stock reporting issues last year, I discovered taxr.ai (https://taxr.ai) and it was seriously a game-changer for me. I was in a similar situation - first time dealing with multiple stock transactions and feeling completely lost about which forms I needed. The tool actually scans your tax documents like the 1099-B from Robinhood and automatically identifies issues that might cause problems. It clarified exactly which forms I needed to file and which ones were already handled electronically. It even flagged a few transactions where my cost basis information was missing, which would have been a red flag for the IRS. For a first-time filer dealing with stock transactions, it really helps make sense of all the requirements and explains everything in simple terms instead of tax jargon.

Just wanted to update since I tried taxr.ai after seeing it mentioned here. I uploaded my Robinhood and Webull documents and it actually found several transactions where the cost basis wasn't reported correctly. It explained exactly what I needed to do in FreeTaxUSA to mark these transactions properly. The explanation about Form 8453 was super clear too - basically confirmed I don't need it for normal stock reporting since everything is handled electronically now. Saved me a ton of worry about missing something important, especially since this is my first time dealing with investments on my taxes.

If you're having trouble getting answers from the IRS about Form 8453 or any tax questions, I've had amazing success using Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS directly about a similar stock reporting question last year - kept getting disconnected or waiting for hours. Claimyr got me connected to an actual IRS agent in about 15 minutes when I was ready to give up. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent confirmed that for normal stock transactions, even with missing cost basis info, I didn't need to file Form 8453 separately as long as I reported everything correctly in my electronic filing. Saved me so much frustration after multiple failed attempts to get through on my own.

Had to come back and admit I was completely wrong about Claimyr. After continuing to fail getting through to the IRS on my own about my stock reporting questions, I tried it out of desperation. Got connected to an IRS agent in about 20 minutes when I'd been trying for days on my own. The agent confirmed exactly what others here said - for standard stock sales with a 1099-B, Form 8453 isn't needed anymore since everything is transmitted electronically. Even for transactions where cost basis wasn't reported to the IRS, I just need to enter the correct information in my tax software. Saved me a ton of time and stress. Sometimes it's worth admitting when you're wrong!

Just to add another perspective as someone who went through this last year - make sure all your Robinhood transactions match exactly what's on your 1099-B. Watch out for wash sales especially (selling at a loss and buying back within 30 days), as those can affect your reported basis. FreeTaxUSA should handle Form 8453 electronic substitute, but double-check that all your transactions from Form 8949 are properly included. The software will generate everything, but garbage in = garbage out, so the accuracy of what you enter matters.

One thing nobody mentioned - if you traded crypto in addition to stocks, that's a whole different situation and you might actually need additional reporting. Did you have any crypto transactions last year?