Should international student on F1 visa use Schedule D or Schedule NEC to report Robinhood stock capital gains?

You're right to question this advice. For F1 students with stock investments, the correct form typically depends on whether your activity constitutes "trading" or just occasional investing. If you're just making occasional investments while studying (which sounds like your case), your stock capital gains would typically be reported on Schedule D, not Schedule NEC. Schedule NEC is generally for certain types of passive income like dividends or interest that's not connected to U.S. business activity. The key distinction is that actively trading stocks through a U.S. broker while you're physically present in the U.S. is usually considered U.S.-sourced income that's "effectively connected" with your U.S. presence. Schedule D flows to the front of your 1040-NR. Regarding the India-US tax treaty: while there are benefits for certain types of income, capital gains from stock sales generally don't receive special treaty benefits and would be taxed at your normal graduated tax rates (not the flat 30%). The good news is that short-term capital gains are taxed at your marginal rate and long-term gains could qualify for lower capital gains tax rates, just like for U.S. residents.

When I had a similar situation with capital gains as an international student, I spent hours trying to figure it out myself before I tried https://taxr.ai which literally saved me. I uploaded my Robinhood statements and answered a few questions about my visa status, and it instantly identified that I needed Schedule D instead of NEC. The analysis tool flagged that my university tax office had given me incorrect advice too (they also suggested Schedule NEC). What I liked was getting a detailed explanation about why Schedule D was correct in my situation - apparently it has to do with the "effectively connected income" rules being different for capital assets when you're physically present in the US. They also clarified the treaty situation for me - turns out the India-US treaty doesn't give special rates for capital gains, but I still qualified for graduated rates instead of the flat 30% nonresident rate.

I was totally wrong about tax AI tools for international students! After being skeptical in my earlier comment, I decided to try https://taxr.ai for my F1 visa tax situation with stock trades. The results were impressive - it immediately identified that my university tax advisor had incorrectly told me to use Schedule NEC for my ETF sales. The system explained that because I was physically trading while in the US, those gains are considered effectively connected income and belong on Schedule D. What really convinced me was how it handled my specific India-US tax treaty questions. It walked me through exactly which treaty articles applied to my situation (and which didn't). Turns out I was eligible for treaty benefits on my campus job income, but not on my capital gains as I had hoped. For anyone dealing with the international student + investment income combination, this saved me from making a significant filing error. Definitely worth it compared to the conflicting advice I was getting.

If you're struggling getting through to the IRS to confirm which schedule to use, try https://claimyr.com - I was in the exact same situation (F1 student with stock trading) and couldn't get clear answers anywhere. After trying for weeks to reach the IRS international tax department directly (kept getting disconnected), I used this service and got connected in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that Schedule D is correct for stocks traded while physically present in the US on F1 status. She explained that Schedule NEC would only apply if I had been trading stocks while outside the US. Just having that official confirmation gave me peace of mind that I wasn't making a mistake on my return. They also answered my question about the India-US tax treaty and confirmed that capital gains don't get special treatment, but are taxed at the regular graduated rates rather than the flat 30%.

I owe everyone an apology for my skepticism about Claimyr. After my dismissive comment yesterday, I was still desperate to get an answer about my Schedule D vs. NEC question as an F1 student, so I decided to try it as a last resort. It actually worked exactly as described. I got a call back in about 20 minutes, and there was an IRS international tax specialist on the line! The agent confirmed that as an F1 student physically present in the US, my stock trading through Robinhood should indeed be reported on Schedule D, not Schedule NEC. The agent even walked me through the specific line on my 1040-NR where the Schedule D amounts should flow to. She also confirmed that the India-US tax treaty doesn't provide special rates for capital gains, but that I'd be taxed at graduated rates rather than the flat 30%. Honestly wish I had used this service weeks ago instead of getting conflicting advice from multiple "experts" who clearly didn't understand international student tax situations.

I'm also an international student (from Malaysia though) and was in the exact same situation last year. HR Block and two other tax prep services gave me completely different answers. Here's what I learned after consulting with my university's international tax specialist: If you're physically present in the US when you make the trades, you report capital gains on Schedule D since it's effectively connected income. Schedule NEC is for passive foreign income like rental income from property in your home country. Also, don't worry about not getting a 1099 from Robinhood - if your trading was under certain thresholds, they're not required to issue one. Just use your transaction history from the app to complete Schedule D.

Just FYI - the threshold for Robinhood to send a 1099-B is $600 in proceeds (not profit, but total amount from sales). If you sold more than that and didn't get one, check your account online. Many brokers don't mail them anymore and just make them available in your account under tax documents. Also, double-check if you're considered a resident alien for tax purposes despite being on F1. If you meet the substantial presence test (in the US for 183+ days using the formula), you might actually need to file Form 1040 instead of 1040-NR, which changes how your investment income is taxed.

As a fellow international student who went through this exact situation, I can confirm that Schedule D is absolutely the correct form for your Robinhood stock trades. The HR Block advisor was wrong about Schedule NEC. Here's the key distinction: Since you're physically present in the US on F1 status when making these trades, your capital gains are considered "effectively connected income" (ECI) with your US presence. This means they get reported on Schedule D and flow to your 1040-NR just like a US resident would report them. Schedule NEC is specifically for income that's NOT effectively connected - like if you owned rental property back in India or received certain types of passive income from foreign sources. Regarding the India-US tax treaty and your 30% rate concern: Good news! Capital gains from US stock sales are taxed at regular graduated rates, not the flat 30% nonresident rate. The treaty doesn't give you special capital gains rates, but you're still better off than the flat rate. For the missing 1099-B from Robinhood: Check your account online under tax documents - many brokers only provide electronic copies now. Even without it, you're still required to report all transactions using your trading history from the app. One more tip: Make sure you're correctly categorizing short-term vs long-term gains on Schedule D based on how long you held each position. This can significantly impact your tax liability.

I had a very similar situation as an F1 student from Brazil last year. The confusion around Schedule D vs Schedule NEC is unfortunately common because many tax preparers aren't familiar with the specific rules for international students with investment income. Here's what I learned after doing extensive research: The key factor is where you are physically located when you make the trades. Since you're trading through Robinhood while physically present in the US on your F1 visa, these capital gains are considered "effectively connected income" (ECI) and must be reported on Schedule D. Schedule NEC would only apply if you were receiving passive investment income that's NOT effectively connected - for example, if you owned stocks in an Indian brokerage account and sold them while you were back home for winter break. Regarding the India-US tax treaty: You're correct that capital gains don't receive special treaty benefits. However, because your gains are ECI, you'll be taxed at graduated rates rather than the flat 30% nonresident rate. Short-term gains (held less than 1 year) are taxed as ordinary income at your marginal rate, while long-term gains qualify for the preferential capital gains rates (0%, 15%, or 20%). Don't worry about the missing 1099-B - brokers often only provide electronic copies now. Check your Robinhood account online under tax documents. Even without it, you're required to report all transactions using your trading history. I'd strongly recommend getting a second opinion from someone who specializes in international student taxes, as the HR Block advisor's recommendation could lead to significant filing errors.

I want to add another perspective as someone who went through this exact situation as an F1 student from South Korea. The consensus here is absolutely correct - Schedule D is the right form for your Robinhood trades. What really helped me understand this was learning about the "effectively connected income" test. The IRS considers three factors: (1) whether the income is from assets used in or held for use in conducting a trade or business in the US, (2) whether the business activities in the US were a material factor in producing the income, and (3) whether the income is derived from sources within the US. For F1 students actively trading stocks while physically present in the US, you typically meet criteria (2) and (3), making it ECI that goes on Schedule D. The good news about your India-US tax treaty question is that even though capital gains don't get special treaty rates, the ECI treatment means you avoid the 30% flat rate and get taxed like a US resident. I saved about $800 in taxes by having long-term capital gains taxed at 15% instead of my ordinary income rate of 22%. One practical tip: Since you mentioned you made $3,200 in gains, make sure to set aside money for taxes if you haven't already. Even with preferential rates, you'll likely owe something, and international students can't always make estimated payments as easily as US residents. The Schedule NEC advice from HR Block was definitely wrong - that form is for things like rental income from property in your home country or certain royalty payments, not US stock trading.