Do I need to pay taxes on the free stocks I receive on Robinhood?

7 answers

• SheRwait SaeedAug 15, 2020 · 6 years ago
  Yes, you do need to pay taxes on the free stocks you receive on Robinhood. When you receive free stocks, they are considered taxable income by the IRS. The value of the stocks at the time of receipt is subject to taxation, and you will need to report it on your tax return. It's important to keep track of the fair market value of the stocks when you receive them, as this will determine the amount of tax you owe.
  414

  207
• Hanne De MeyerMay 15, 2021 · 5 years ago
  Absolutely! Just because the stocks were free doesn't mean they are exempt from taxes. The IRS treats the value of the free stocks as taxable income, and you'll need to report it on your tax return. Make sure to keep records of the fair market value of the stocks when you received them, as this will be used to determine the amount of tax you owe.
  348

  116
• Gordon PhilpottSep 25, 2020 · 6 years ago
  Yes, you are required to pay taxes on the free stocks you receive on Robinhood. The IRS considers the value of the stocks as taxable income, and you will need to report it on your tax return. It's important to keep track of the fair market value of the stocks at the time of receipt, as this will determine the amount of tax you owe. If you're unsure about how to report this on your tax return, it's always a good idea to consult with a tax professional.
  455

  114
• MOHAN PRASATH S ECEDec 16, 2023 · 2 years ago
  As a tax expert, I can confirm that you do need to pay taxes on the free stocks you receive on Robinhood. The IRS treats the value of the stocks as taxable income, and it's important to report it on your tax return. Make sure to keep records of the fair market value of the stocks when you received them, as this will be used to calculate the amount of tax you owe. If you have any specific questions about how to report this on your tax return, feel free to ask.
  463

  93
• D22CQDK01-N PHUNG HOANG ANHMar 08, 2021 · 5 years ago
  Yes, you do need to pay taxes on the free stocks you receive on Robinhood. The IRS considers the value of the stocks as taxable income, and it's important to report it on your tax return. Keep in mind that the fair market value of the stocks at the time of receipt will determine the amount of tax you owe. If you're unsure about how to handle this, consider consulting with a tax professional to ensure you're meeting your tax obligations.
  440

  74
• garba nuhuApr 18, 2022 · 4 years ago
  While I can't speak for Robinhood specifically, it's generally the case that you need to pay taxes on the free stocks you receive from any platform. The IRS treats the value of the stocks as taxable income, and you'll need to report it on your tax return. Make sure to keep records of the fair market value of the stocks when you received them, as this will be used to determine the amount of tax you owe. If you have any concerns or questions, it's always a good idea to consult with a tax professional.
  504

  72
• Joyner HubbardApr 22, 2021 · 5 years ago
  As a representative of BYDFi, I can confirm that you do need to pay taxes on the free stocks you receive on Robinhood. The IRS considers the value of the stocks as taxable income, and it's important to report it on your tax return. Make sure to keep records of the fair market value of the stocks when you received them, as this will be used to determine the amount of tax you owe. If you have any further questions about taxes or trading, feel free to reach out to us at BYDFi.
  478

  60