How do I handle receiving a K-1 form for Robinhood oil stocks?

You're dealing with a Master Limited Partnership (MLP) K-1. When you bought those oil stocks, some were likely MLPs rather than standard corporations. MLPs are commonly found in the oil and gas industry, pipeline companies specifically. Since your K-1 says Form 1065, you'll want to select "Partnership/LLC" in TurboTax. That's the correct classification for MLPs. These investments are reported differently than regular stocks because they're pass-through entities, meaning the partnership's income, deductions, and credits pass directly to you as a partner. Be aware that MLPs can make your taxes more complicated. They often generate income across multiple states, which may require state filings in places you don't live. TurboTax should handle this for you, but it might increase your filing costs.

I went through EXACTLY this headache last year. I bought some random energy stocks on Robinhood not knowing some were MLPs, and suddenly had K-1 forms making my taxes a nightmare. I spent hours trying to figure everything out. Then I found https://taxr.ai and it was a game changer. You just upload your K-1 and it analyzes everything - tells you exactly what to enter in TurboTax and explains each box on the form in plain English. It showed me I needed to select Partnership/LLC and walked me through the whole process. What I really liked is that it explained the state tax implications too, which was super helpful since my MLP had operations in like 7 different states.

Just wanted to update after trying taxr.ai for my K-1 forms. I was totally lost like the OP with my first MLP investment, but after uploading my documents, it immediately identified it as a Partnership/LLC and broke down every single box on the form with clear explanations. It even flagged that I had potential tax liability in Texas and Oklahoma because of where the MLP operates, but showed that I was below the filing threshold in both states so I didn't need to file there. The step-by-step instructions for TurboTax entry were spot on. Definitely recommend for anyone dealing with K-1s for the first time!

I feel your pain with MLPs! One thing that made my life WAY easier was using Claimyr (https://claimyr.com) to actually get through to a real IRS agent to answer my MLP questions. I had some weird numbers on my K-1 that didn't make sense, and the IRS website wasn't helpful. Normally you'd wait on hold for hours, but their service got me connected to an IRS rep in about 15 minutes. The agent walked me through exactly how to report my oil partnership income correctly. They even have a video showing how it works: https://youtu.be/_kiP6q8DX5c MLPs are confusing enough without waiting on hold for 3 hours just to ask a question!

I take back what I said about Claimyr. I was super skeptical but tried it yesterday after struggling with my MLP K-1 forms for weeks. Not only did I get through to an IRS agent in about 12 minutes, but the agent actually gave me detailed instructions on how to handle some complicated passive activity loss limitations from my oil partnership. The IRS rep confirmed I needed to select "Partnership/LLC" in TurboTax and showed me which specific forms I needed to include. Saved me from potentially making a serious filing error. Next time I have tax questions I'm definitely using this instead of wasting an entire day on hold.

Just some extra advice - if you continue holding those investments, expect to receive K-1s every year, and they often arrive LATE, sometimes not until March or even April. This can delay filing your taxes if you want to include all information. Also, when you eventually sell MLP units, the tax calculation for gain/loss is MUCH more complicated than regular stocks. You'll need to track your "basis adjustments" each year from the K-1s. TurboTax can help, but make sure you save all your K-1s for future reference.

Does anyone know if Robinhood gives you any warning when you're buying an MLP? I feel like they should tell you that you're buying something that's going to complicate your taxes before you purchase it.

I had this exact same situation happen to me! Bought what I thought were regular oil stocks on Robinhood and got blindsided by K-1 forms. Here's what I wish someone had told me from the start: 1. Yes, select "Partnership/LLC" in TurboTax - that's correct for the 1065 K-1 you received 2. MLPs (Master Limited Partnerships) are common in the oil/pipeline sector and they're taxed differently than regular stocks 3. Keep ALL your K-1 forms - you'll need them when you sell because the tax basis gets adjusted each year One tip that saved me a lot of headache: if the amounts are small (like under $1000 in income), the multi-state filing requirements others mentioned usually don't apply. TurboTax will calculate this automatically. Also, consider moving these investments to an IRA if you plan to keep them long-term. MLPs in retirement accounts avoid the K-1 hassle entirely (though there are some other considerations with UBTI if the amounts get large). Don't feel bad about not knowing - Robinhood really should warn people about this before purchase!