How to handle undetermined term transactions for NONCOVERED tax lots on Robinhood 1099-B?
So I spent literally all weekend trying to figure this out and getting nowhere. When I imported my 1099 from Robinhood into my tax software, most of my crypto trading showed up fine - dates, cost basis, all that good stuff. But I've got this weird issue with 3 specific transactions (2 Bitcoin and 1 Ethereum) that are giving me a headache. These transactions are showing up under "undetermined term transactions for NONCOVERED tax lots" on my 1099-B from Robinhood. They have sale proceeds listed but no acquisition date or cost basis! I'm completely stuck on how to report these properly. I've been trading crypto pretty actively last year, and everything else was reported normally. Just these 3 transactions are messed up. Has anyone dealt with this before? Do I need to manually track down when I bought these specific coins and what I paid? This seems like it should be a common issue for crypto traders but I can't find clear guidance anywhere.
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Amina Diallo
This is actually a pretty common issue with crypto on brokerage platforms. When transactions show up as "undetermined term" and "NONCOVERED" on your 1099-B, it means Robinhood doesn't have (or isn't required to report) the acquisition date and cost basis information to the IRS. For NONCOVERED securities or crypto, the responsibility falls on you to provide the correct cost basis info. You'll need to go back through your transaction history in your Robinhood account and find when you originally purchased those specific Bitcoin and Ethereum amounts. Then calculate your actual cost basis for each transaction. When you file, you'll need to report these transactions properly on Form 8949, checking box C (for transactions without cost basis reported to the IRS). You'll enter the info Robinhood provided (date sold, proceeds) and then manually add your acquisition date and cost basis.
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CosmicCowboy
•Thanks for the help! I'm still a little confused though. How exactly do I figure out WHICH Bitcoin/Ethereum purchases correspond to these specific sales? I made multiple buys over time at different prices.
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Amina Diallo
•For crypto, you'll need to use an accounting method like FIFO (First In, First Out) consistently. This means your oldest purchases get sold first. Go to your Robinhood transaction history and download all your crypto purchases. Sort them by date, and match up your earliest purchases with these sales. If you've been using a different method like specific identification, you should have records of which specific lots you intended to sell. The key is consistency - pick one method and stick with it for all your crypto reporting.
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Oliver Schulz
I dealt with this same nightmare last year and found a tool that saved me hours of headache. Check out https://taxr.ai - they specialize in crypto tax document analysis and can automatically identify these undetermined term NONCOVERED transactions. Their system extracted all the data from my Robinhood 1099-B and actually matched everything up correctly using FIFO calculations. The best part was I could see exactly which original purchases corresponded to which sales for tax purposes. I uploaded my Robinhood statements and it reconstructed my complete cost basis history, even identifying stuff Robinhood hadn't properly tracked.
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Natasha Orlova
•Does this actually work if you've transferred crypto between different wallets? I've got some BTC that started on Coinbase but moved to Robinhood and now it's showing up as NONCOVERED.
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Javier Cruz
•I'm skeptical about these crypto tax tools. How does it handle wash sales since technically the wash sale rule doesn't apply to crypto but some tax software treats it like it does?
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Oliver Schulz
•Yes, it actually handles wallet transfers really well. You can connect multiple exchanges or upload statements from different platforms, and it tracks the crypto across movements. This helps maintain proper cost basis even when moving between exchanges like Coinbase and Robinhood. The tool specifically distinguishes between securities and cryptocurrency in its calculations. It correctly recognizes that wash sale rules don't technically apply to crypto (currently treated as property by IRS). But it gives you the option to apply them if you're being extra cautious or if your other tax software is set up that way. It basically gives you control rather than making assumptions.
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Natasha Orlova
Just wanted to follow up - I tried taxr.ai for my Robinhood NONCOVERED lots issue and it was seriously helpful! I uploaded my Robinhood statements and transaction history, and it immediately identified my problem transactions. The system matched my Bitcoin sales to my original purchases from months earlier, calculated the correct cost basis, and even categorized them properly as long vs short term. Saved me hours of spreadsheet work trying to figure out FIFO calculations manually. The report it generated had exactly the info I needed for Form 8949. Definitely recommend for anyone dealing with this Robinhood 1099-B issue!
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Emma Wilson
If you're still struggling with this after sorting through your transactions, you might need to talk directly to the IRS for guidance. I spent WEEKS trying to get someone on the phone before discovering https://claimyr.com - they got me through to a real IRS agent in under an hour when I was dealing with a similar reporting issue. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c I was about to give up after hitting the "call volume too high" message for days, but Claimyr got me through to someone who actually knew about crypto reporting requirements and could explain exactly how to handle these NONCOVERED transactions properly.
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Malik Thomas
•How does this actually work? Does it just call the IRS for you? Seems weird they could get through when nobody else can.
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Javier Cruz
•Yeah right... nobody gets through to the IRS during tax season. Especially for crypto questions. Their own agents barely understand this stuff. I'll believe it when I see it.
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Emma Wilson
•It doesn't just call for you - it navigates the IRS phone tree and holds your place in line. When it's about to connect to an agent, you get alerted to pick up the call. It's like having someone wait on hold for you, which is why it works when calling directly fails. They use a system that continuously tries to get through during optimal times and monitors hold queues. Crypto tax questions are actually handled by specialized IRS agents who can provide guidance on NONCOVERED securities reporting. The person I spoke with immediately recognized the Robinhood 1099-B issue and walked me through exactly how to report it correctly on Form 8949.
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Javier Cruz
I'm honestly shocked - I tried Claimyr after posting my skeptical comment and it actually worked! Got through to an IRS agent in about 45 minutes (after trying for days on my own with no luck). The agent confirmed exactly what I needed to do with these undetermined term NONCOVERED transactions from Robinhood. Had to report them on Form 8949 with Box C checked, enter the sale info from the 1099-B, and manually add my cost basis from my own records. They even sent me to a specialist who understood crypto reporting specifically. Saved me from potentially making a big mistake on my return!
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NeonNebula
Another approach worth considering: Check if you ever set up API access to a crypto tracking service during the year. I had the same issue with Robinhood, but realized I had connected CoinTracker to my account earlier in the year. It had all my historical transactions including cost basis for those pesky "undetermined" lots. Saved me a ton of time!
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CosmicCowboy
•I did try Koinly earlier in the year but didn't keep up with it. Would the historical data still be there even if I haven't been actively using it?
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NeonNebula
•Yes, if you connected your Robinhood account via API, Koinly should have pulled in all your historical transactions up to that point. Log back in and see what data they have - might not be completely current but should give you a starting point for those earlier transactions. You might need to manually add any new transactions since you stopped using it, but the historical cost basis info should still be there.
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Isabella Costa
Anyone know if this "undetermined term" stuff affects your overall tax liability? Like, if I can't find my original cost basis for some old Bitcoin I bought years ago, am I just screwed and have to report the full sale as gain?
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Amina Diallo
•Technically, if you can't document your cost basis, the IRS could consider it $0, meaning the entire proceeds would be taxable. However, they generally expect you to make a "reasonable effort" to determine your actual cost basis. If you truly can't find records of your original purchase, you might be able to use the price of Bitcoin on the approximate date you acquired it as your basis. Just document your methodology clearly in case of audit. But definitely try to find those original records first - old emails from exchanges, bank statements showing transfers, etc.
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Diego Mendoza
I went through this exact same situation last year with Robinhood! What worked for me was downloading my complete transaction history from Robinhood (you can get this from their web platform under Documents & Reports). Then I created a simple spreadsheet tracking all my crypto purchases chronologically. For those 3 undetermined transactions, I used FIFO method to match them with my earliest purchases. So if you sold 0.1 Bitcoin on a specific date, you'd match it with your first 0.1 Bitcoin purchase (or combine multiple small purchases until you hit 0.1). The key is being consistent with your method. Once you calculate the cost basis, report these on Form 8949 with Box C checked (short-term) or Box F (long-term), enter the sale proceeds from your 1099-B, then manually add your calculated cost basis and gain/loss. It's tedious but totally doable! I spent about 3 hours reconstructing everything but it was worth it to get it right. Make sure to keep documentation of your methodology in case the IRS ever asks.
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