Need help with Robinhood asking me to confirm tax status W9 - what to do?

This is actually pretty straightforward. Robinhood is required by law to collect W9 information from account holders for tax reporting purposes. The "backup withholding" question is standard on all W9 forms. For most people, checking "I am not subject to backup withholding" is correct. You would only be subject to backup withholding if the IRS has specifically notified you that you are subject to it - which usually happens if you've failed to report interest and dividends on past tax returns or if you've underreported income. Since you've been filing taxes for several years without issues (I'm assuming), and you haven't received any specific notification from the IRS about backup withholding, you should check the box. This is completely separate from your immigration status - having an SSN and filing taxes is what matters here.

I had this same confusion with Robinhood last year and ended up using taxr.ai to help me understand my tax obligations as a non-citizen investor. I uploaded my documents at https://taxr.ai and they analyzed everything, explaining that the W9 backup withholding checkbox is just confirming you're not under a specific IRS penalty. In my case (I'm on a work visa), they confirmed I should check the box since I hadn't received any IRS notices about backup withholding. They also explained how investment income reporting works for someone in immigration proceedings which was super helpful for my situation.

Just wanted to update that I ended up trying taxr.ai after my initial skepticism, and it was actually super helpful. I uploaded the Robinhood tax status request and my past W9, and got a detailed explanation of what backup withholding actually means for someone in immigration proceedings. They explained that properly checking "not subject to backup withholding" (when you haven't been notified otherwise by the IRS) is actually the correct thing to do, and showed exactly how this reporting works with my SSN. Would definitely recommend for anyone navigating tax forms during the immigration process - saved me a lot of stress!

If you're having trouble getting clear answers from Robinhood about your tax status situation, you might want to try Claimyr to get through to the IRS directly. I was in a similar situation (working on H1B with investments) and needed clarification about my W9 and tax reporting. Tried calling the IRS for weeks with no luck. Used https://claimyr.com to get a callback from the IRS within 45 minutes instead of waiting on hold forever. You can see how it works at https://youtu.be/_kiP6q8DX5c - basically they navigate the phone tree for you and get you in the callback queue. The IRS agent was able to confirm my backup withholding status right away and explained exactly what I needed to do with my investment accounts.

I have to eat my words here. After posting my skeptical comment, I decided to try Claimyr myself since I've been trying to reach the IRS about my 1099-B from Robinhood that seemed to have incorrect withholding information. Got a callback in about 35 minutes and sorted out my question about backup withholding and my visa status in one call. The IRS agent confirmed I should check "not subject to backup withholding" since I've never received a specific notice saying otherwise. Honestly pretty impressed with how well it worked - saved me from spending another afternoon on hold.

Something to consider - if you're in immigration proceedings, make sure your investments align with your declared income on any immigration forms. My friend had issues because his investment activity didn't match his stated income on his adjustment of status application. Not saying you're in that situation, but it's something to be mindful of. For the W9 specifically though, if you haven't been notified about backup withholding by the IRS, checking "I am not subject to backup withholding" is the correct choice.

Just FYI - I've used both Robinhood and Fidelity and transferring your stocks is actually super easy. Login to Fidelity, go to transfers, select transfer an account to Fidelity, enter your Robinhood account info, and Fidelity handles everything. Takes like 5-7 days usually. Since your immigration status is pending, might be good to consolidate everything to make your financials cleaner and easier to track.

Just want to add one more perspective here - I went through a similar situation during my green card process. The key thing to remember is that the W9 backup withholding question is purely about tax compliance, not immigration status. Since you have an SSN and have been filing taxes consistently for 4-5 years, you're doing everything right. The "I am not subject to backup withholding" checkbox should be checked unless you've specifically received an IRS notice saying otherwise (which would be rare and you'd definitely remember it). One tip for your immigration case - keep copies of all your tax returns and investment account statements organized. USCIS sometimes asks for evidence of financial history during the adjustment of status process, and having clean records from reputable brokers like Vanguard (vs some of the concerns people have about Robinhood) can only help. Your $1500 investment is small enough that it shouldn't raise any questions, but proper documentation is always good practice during immigration proceedings.

I'm going through a very similar situation right now - also waiting for my green card approval and just got the same W9 confirmation request from Robinhood. Reading through all these responses has been super helpful! Just wanted to add that I called my tax preparer about this exact question last week, and they confirmed what everyone here is saying - if you haven't received a specific IRS notice about backup withholding (which would be a CP2100 or CP2100A notice), then you should check "I am not subject to backup withholding." The fact that you've been filing taxes consistently with your SSN for 4-5 years is actually a good sign for your immigration case too. It shows financial responsibility and tax compliance, which USCIS looks favorably upon. For what it's worth, I'm also planning to consolidate my accounts at Fidelity once I get this W9 stuff sorted out. Having everything in one place at a more established broker just seems like it'll make things cleaner for when I eventually get my interview.

I went through this exact same situation about 6 months ago during my adjustment of status process. The W9 backup withholding question really stressed me out too, but it turned out to be much simpler than I thought. Since you have an SSN and have been filing taxes consistently for 4-5 years without any issues, you should definitely check "I am not subject to backup withholding." You would only be subject to backup withholding if the IRS had specifically sent you a notice (called CP2100 or CP2100A) telling you that you are - which almost never happens unless you've repeatedly failed to report investment income. Your immigration status doesn't factor into this decision at all. The W9 is purely about tax reporting requirements, and since you're already in the tax system with your SSN and filing regularly, you're doing everything correctly. One thing I learned during my process - having your investment accounts at reputable brokers like Vanguard (which you already have) looks much better than Robinhood if USCIS ever asks for financial documentation. Given your small portfolio size, it might actually be worth just selling your Robinhood positions and rebuying them at Vanguard to keep everything consolidated and clean for your immigration case. Don't overthink this - check the box, submit the W9, and you'll be all set!

Just wanted to chime in as someone who recently completed the green card process (got approved 3 months ago). I had the exact same W9 situation with Robinhood during my final stages. The backup withholding question is really straightforward once you understand what it means. Since you've been filing taxes consistently with your SSN for 4-5 years and haven't received any CP2100 notices from the IRS, you should absolutely check "I am not subject to backup withholding." This is completely separate from your immigration status. One piece of advice from my experience - during my USCIS interview, they did ask to see my tax transcripts and bank statements. Having investment accounts came up briefly, but since everything was properly reported on my tax returns, it was actually viewed positively as evidence of financial stability and tax compliance. Given your small portfolio size ($1500), I'd honestly recommend consolidating everything at Vanguard before your interview process gets too far along. It just makes the paperwork cleaner and removes any potential questions about why you have accounts at multiple brokers. Plus, you'll avoid Robinhood's $75 transfer fee by just selling and rebuying. Don't stress about this - you're doing everything right by staying compliant with tax obligations during your immigration process. That's exactly what USCIS wants to see!