Should I confirm tax status on Robinhood W9 form as non-resident with SSN?
Hey tax gurus, need some advice about this Robinhood situation. They're asking me to "confirm my tax status" for my W9 information. The only option they're giving me to change is checking a box that says **I am not subject to backup withholding**. I'm currently in the middle of my Green Card application (not approved yet), but I do have a Social Security Number and have been filing/paying taxes here for about 3-4 years. I've only put around $1,500 into my Robinhood account. Honestly, right after opening it I started hearing all these sketchy things about their business practices, so I went ahead and opened a Fidelity account instead. Been procrastinating on moving my stocks over though. My question is simple - do I need to confirm this tax status thing on Robinhood? And if yes, should I be checking that box about not being subject to backup withholding? Not sure what to do here since I'm not a permanent resident yet but do pay taxes.
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Kaitlyn Otto
That W9 confirmation is pretty standard with brokerages. The backup withholding box is asking if you're exempt from backup withholding, which is when financial institutions withhold 24% of certain types of payments to send to the IRS. Most people are NOT subject to backup withholding unless you've failed to report interest/dividend income on previous tax returns, failed to provide your correct TIN (taxpayer ID number), or the IRS has specifically notified you that you're subject to backup withholding. Since you have an SSN and have been filing taxes properly for several years, you're likely not subject to backup withholding - meaning you would check that box. Your immigration status (waiting for Green Card) doesn't affect this particular question. This is more about your tax compliance history.
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Axel Far
•Thanks for explaining this clearly. I have a similar situation but with Etrade. What happens if someone mistakenly doesn't check the box? Would they automatically start withholding 24% from any gains?
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Kaitlyn Otto
•If you don't check the box indicating you're not subject to backup withholding, then yes, the broker would typically start withholding 24% of certain payments like interest, dividends, and sometimes proceeds from stock sales. This withholding is sent directly to the IRS as a prepayment of your potential tax liability. You'd still report the full amount of income on your tax return, but you'd also get credit for the amounts withheld. It essentially creates an unnecessary complication since you'd likely be overpaying and then waiting for a refund later.
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Jasmine Hernandez
After struggling with similar tax forms for my investment accounts (I had Robinhood, Webull, and Fidelity), I found this amazing AI tax assistant at https://taxr.ai that helped me understand all these confusing forms. It analyzed my tax documents and explained exactly what each section meant in plain English, including the W9 backup withholding question. Saved me from making mistakes that could have triggered unnecessary withholding on my investments.
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Luis Johnson
•How exactly does it work? I have a bunch of tax forms from different brokerages and I'm totally lost on what to do with them.
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Ellie Kim
•Does it actually analyze the specific forms from Robinhood? I'm skeptical about these AI tools understanding the nuances of tax forms for non-residents.
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Jasmine Hernandez
•It works by analyzing the tax documents you upload - you just take pictures or upload PDFs of your forms, and it identifies what they are and explains each section. Super useful when you're trying to make sense of different forms from multiple brokerages. Yes, it definitely handles Robinhood forms specifically! I was surprised because it recognized my Robinhood 1099 immediately. It's not just for residents - it actually has specific guidance for different tax situations including non-resident status. It helped clarify exactly how to handle W9 questions based on my specific circumstances.
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Ellie Kim
I was skeptical when I first heard about taxr.ai from this thread, but I decided to give it a try with my complicated tax documents situation (multiple brokerages including Robinhood). I'm absolutely blown away! It immediately recognized my W9 form and explained exactly what that backup withholding checkbox meant for my specific situation as someone with an ITIN instead of an SSN. The tool saved me from accidentally triggering withholding that would have tied up my money for months. Definitely worth checking out if you're confused about these tax status confirmations.
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Fiona Sand
I had a similar issue with tax forms last year and spent literally WEEKS trying to get someone at the IRS to clarify whether I needed to check that backup withholding box. Could not get through on the phone no matter what time I called. Eventually found this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in under 30 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent confirmed that with my tax history and SSN, I wasn't subject to backup withholding and should check the box.
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Mohammad Khaled
•Wait, how does this even work? The IRS phone system is practically impossible to get through. I've tried calling a dozen times about my W9 status.
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Alina Rosenthal
•Sounds like a scam. Nobody can get through to the IRS these days. I've been trying for months about my backup withholding issue after Robinhood locked my account.
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Fiona Sand
•The service basically holds your place in line and calls you back when an IRS agent is available to talk. It works with their phone system to navigate the menu options and wait through the hold times so you don't have to. You just put in what you need help with and your callback info. I was skeptical too at first, but I was desperate after waiting for hours multiple times. It's not like they're claiming to be the IRS or anything shady - they just help you get through the phone system. I got my backup withholding question answered in one call, and the IRS agent was actually super helpful once I finally got through to them.
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Alina Rosenthal
I owe everyone here an apology - especially to the person recommending Claimyr. After calling BS on that service, I was so desperate with my Robinhood backup withholding issue (they locked my account!) that I tried it yesterday. Absolutely floored that it actually worked. Got a call back in about 45 minutes, spoke to an actual IRS agent who confirmed I'm not subject to backup withholding and even sent me documentation I could forward to Robinhood. Account unlocked this morning. Never been so happy to be wrong about something.
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Finnegan Gunn
FYI - I work in tax consulting (not giving official advice) but most people ARE exempt from backup withholding. The only reasons you'd be subject to it are: 1. You failed to provide your TIN 2. The IRS specifically notified you that you're subject to it 3. You've had penalties for not reporting interest/dividends 4. You've been told by the IRS that you underreported interest/dividends With an SSN and clean tax history, check the box saying you're NOT subject to backup withholding. Your immigration status is irrelevant for this specific question.
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Kristian Bishop
•Thanks for this info! So even though my Green Card isn't approved yet, since I have an SSN and have been filing taxes normally, I should check the box? My main worry was that my pending immigration status might somehow affect this.
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Finnegan Gunn
•Yes, you should check the box. The backup withholding question is strictly about your tax compliance history, not your immigration status. Having a pending Green Card application with an SSN and a history of properly filing taxes means you're not subject to backup withholding. Immigration status would matter for other tax considerations (like determining if you're a resident alien vs. nonresident alien for tax purposes), but for this specific W9 backup withholding question, it's irrelevant. Just make sure you continue filing your taxes properly while your Green Card application is processing.
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Miguel Harvey
Just to add some clarity here - I went through this exact same thing with Robinhood last month. If you don't check that box, they're required to withhold 24% of your investment income and send it to the IRS. Even if you're entitled to that money back later, it's a huge hassle. If you've been filing taxes properly and have an SSN, definitely check the box saying you're NOT subject to backup withholding.
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Ashley Simian
•What happens if I checked it wrong? I think I might have said I AM subject to backup withholding because I misunderstood. Will they take money from my account?
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Ava Garcia
•You should contact Robinhood customer service ASAP to correct this! If you mistakenly indicated you ARE subject to backup withholding when you shouldn't be, they'll start withholding 24% from any dividends, interest, or proceeds from stock sales. You can usually update your W9 information through their app or website under tax documents/settings. Look for a section called "Tax Information" or "W9 Form" where you can make corrections. The sooner you fix it, the better - you don't want them holding onto your money unnecessarily.
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Anderson Prospero
Just wanted to share my experience since I was in almost the exact same situation as you. I'm also waiting on my Green Card approval but have had an SSN for years and been filing taxes properly. I was really confused about that backup withholding checkbox too. I ended up calling a tax professional who confirmed what others here are saying - your immigration status doesn't matter for this specific question. Since you have an SSN and have been filing taxes without issues, you should definitely check the box saying you're NOT subject to backup withholding. The key thing to understand is that backup withholding is basically a penalty for people who haven't been compliant with tax reporting in the past. If you've been filing your returns and paying taxes properly (which it sounds like you have), then you're exempt from it regardless of whether your Green Card is still pending. Don't overthink it - just check the box and move forward with transferring your investments to Fidelity like you planned. Robinhood's sketchy practices are definitely a good reason to switch!
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Omar Farouk
•This is really helpful, thanks for sharing your experience! I was getting worried that my pending Green Card status might complicate things, but it sounds like I'm overthinking it. Your explanation about backup withholding being more of a "penalty for non-compliance" rather than an immigration issue makes perfect sense. I've been filing my taxes on time every year since I got my SSN, so I should be fine to check that box. And yeah, definitely ready to get away from Robinhood - the sooner I can move everything to Fidelity, the better!
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