How to Import Robinhood into TurboTax

Importing a client's Robinhood 1099 into TurboTax can be a huge time-saver, reducing hours of manual data entry to just a few clicks. However, the process has a few quirks, especially when dealing with a high number of trades or cryptocurrency. This guide provides a step-by-step walkthrough of the import process, solutions for common problems like transaction limits, and key verification steps to ensure complete accuracy for your client's return.

Before You Start: Gathering Your Documents

A smooth import process begins with good preparation. Before you attempt to connect any accounts, you'll want to have a few key items ready to go. The most important document is the client's official Consolidated Form 1099 from Robinhood. This isn't just a list of trades; it's a comprehensive document that typically includes several different forms mashed into one PDF.

Here’s what you'll find inside:

• Form 1099-B, Proceeds from Broker and Barter Exchange Transactions: This is the big one. It details every sale of stocks, ETFs, and options, including the sale date, proceeds, cost basis, and gain or loss. It's organized by short-term and long-term gains, with specific sections for sales where cost basis is reported to the IRS (covered) versus not reported (noncovered).
• Form 1099-DIV, Dividends and Distributions: This section lists any dividends your client received, breaking them down into ordinary and qualified dividends.
• Form 1099-INT, Interest Income: This reports any interest earned, most commonly from uninvested cash held in the brokerage account.
• Form 1099-MISC, Miscellaneous Income: This form can report other types of payments, such as referral bonuses or other "stock reward" income.
• Form 1099-DAI, Digital Asset Proceeds: A newer addition, this reports the gross proceeds from sales of cryptocurrencies.

Locate and download this PDF from your client's Robinhood account before starting the import. Cross-referencing the imported data against this source document is your most important verification step. You'll also need your client’s Robinhood login credentials to authorize the connection with a tax software program like TurboTax. This is best done with the client present or via a secure screen-sharing session to maintain an audit trail and security. Finally, confirm your client is using a version of TurboTax that supports investment income, typically TurboTax Premier or Self-Employed.

The Step-by-Step Guide to Importing Your Robinhood 1099

Once you have the Consolidated 1099 PDF in hand for verification, you can proceed with the automated import. The interface may vary slightly from year to year, but the core steps remain consistent.

Follow this procedure within your client's TurboTax return:

1. Navigate to Income & Expenses: From the main tax overview screen, find the "Wages & Income" or "Income & Expenses" section.
2. Find the Investment Income Section: Scroll down until you see a category for "Investments and Savings" or a similar title. Click "Start" or "Review" next to "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)."
3. Add a New Account: TurboTax will show you a page listing any investment accounts you've already entered. Click the button to "Add an investment" or "Add a new account."
4. Search for Robinhood: You'll see a search bar asking for the name of a bank or brokerage. Type "Robinhood" and select it from the list. Don't be fooled by other similarly named institutions; choose "Robinhood Securities, LLC."
5. Enter Your Client's Credentials: On the following screen, you’ll be prompted to enter the username and password for your client's Robinhood account. For accounts with two-factor authentication (2FA), your client will need to provide you with the single-use security code sent to their phone or email.
6. Wait for the Import: After you successfully log in, TurboTax will connect to Robinhood's servers and begin pulling the tax data. If your client has hundreds or thousands of transactions, this process can take a few minutes. Avoid refreshing the page or navigating away.
7. Review the Summary: Once the import is complete, TurboTax will display a summary of the imported information, usually showing the total proceeds, cost basis, and interest/dividends received. This is your first opportunity to compare the numbers to the PDF you downloaded.

If the numbers match and your client doesn't have an excessive number of transactions, the process is mostly complete. You'll move on to the verification step. However, for active day traders, things can get more complicated.

What Happens When the Import Fails? Dealing with A Lot of Trades

The automated import feature is powerful, but it's not unlimited. One of the most common issues tax pros encounter is an import failure or an error message related to transaction limits. Most e-filing software, including TurboTax, has a hard limit on the number of individual transactions it can import and include in an e-filed return. The official limit can change, but it’s generally in the ballpark of a few thousand transactions.

If your client is a very active trader and has exceeded this limit, a direct import is impossible. You have two primary options.

Option 1: Enter Summary Totals in TurboTax

Instead of importing each trade one-by-one, the IRS allows you to report summary totals for different categories of sales on Form 8949, Sales and Other Dispositions of Capital Assets. This is the most efficient solution for high-volume traders.

Here's how to do it in TurboTax:

1. Navigate back to the "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)" section.
2. Instead of selecting Robinhood for import, choose the option to enter transactions in a different way or type them in yourself.
3. Select "Enter a summary of each sales category" or similar wording.
4. Look at your client's Consolidated 1099-B from Robinhood. You will see totals for different gain/loss categories, like "Short-Term transactions for which basis is reported to the IRS (Form 8949, Part I, Box A checked)" and "Long-Term transactions for which basis is reported to the IRS (Form 8949, Part II, Box D checked)."
5. Enter the matching "Total Proceeds" and "Total Cost Basis" for each of these categories into TurboTax. You can skip entering adjustment codes if their 1099-B doesn't show any, which is most often the case on these summary lines.

By doing this, you're informing the IRS of the aggregate result of the client's trading without bogging down the system with thousands of lines of data. There’s a common misconception that you must mail a copy of the 1099-B to the IRS when you do this. However, per the instructions for Form 8949, if you are reporting summary totals for transactions reported on Box A or D (where cost basis is known to the IRS), you do not need to mail in a statement.

A Note on Robinhood Crypto: What Imports and What Doesn't

Cryptocurrency adds another layer of complexity. With the introduction of Form 1099-DAI for digital assets, brokers like Robinhood now report the gross proceeds from crypto sales to the IRS. TurboTax's import partnership with Robinhood generally pulls this information into the return successfully.

The problem is what it doesn't import: the cost basis. For most crypto transactions on Robinhood, the box for "Basis is being reported to the IRS" on the 1099 will be unchecked. This means while the gross sales are reported, you have to manually provide the cost basis to calculate the actual gain or loss.

After importing the Robinhood 1099-DAI crypto data, you must:

• Go to the imported crypto transactions section in TurboTax.
• Manually edit each transaction to add the correct cost basis. The platform will show the proceeds but often leave the basis as $0.
• To find the cost basis, you will need to refer to the supplementary "Cryptocurrency Tax Details" CSV file, which you can download from Robinhood’s tax document center. This file contains the date of acquisition and the original purchase price for each crypto unit sold.

Failing to enter the cost basis will result in the entire gross proceeds being treated as a capital gain, leading to a drastically inflated tax liability. This step is non-negotiable and represents a major area where tax professionals add significant value.

Post-Import Review: Trust but Verify

An automated import is a tool, not a replacement for professional oversight. The final and most important step is a thorough review. Take the Consolidated 1099 PDF your client provided and compare it line-by-line with the data inside TurboTax.

Use this simple checklist for your verification process:

• Check Overall Totals: Do the total proceeds, cost basis, wash sale disallowed amounts, interest, and dividend totals in TurboTax exactly match the summary page of the Robinhood 1099?
• Spot-Check Individual Transactions: Pick a few sales, especially larger ones or those with potential complications like a wash sale, and ensure the specific numbers imported correctly.
• Verify Wash Sales: Robinhood’s import usually tags wash sales correctly, but always double-check. The disallowed loss from a wash sale should be added to the cost basis of the replacement shares. Confirm TurboTax handled this adjustment as expected.
• Confirm All Income is Present: Make sure the dividend income (Form 1099-DIV), interest income (Form 1099-INT), and any miscellaneous income have all been accounted for, not just the capital gains.
• Double-Check Crypto Basis: Go back through every single cryptocurrency sale to confirm you have entered a non-zero cost basis for it using the ancillary documents from Robinhood. This is the most common error.

This verification process transforms the task from simple data entry into professional review, guaranteeing the accuracy and completeness of your client’s tax filings.

Final Thoughts

Successfully importing a client's Robinhood 1099 into TurboTax requires a methodical approach. By preparing properly, understanding the limitations around transaction volume and crypto, and performing a detailed review, you can transform this process from a tedious administrative burden into a streamlined part of your workflow.

While data import software handles the mechanics, your expertise comes alive when addressing the complexities behind the numbers—like the nuances of constructive sale rules or capital loss limitations. When those advanced questions arise, you need fast, reliable answers. Instead of digging through outdated tax forums for hours, Feather AI gives you accurate, citation-backed answers from authoritative IRS sources in seconds, letting you give your clients the high-level strategic advice they depend on you for.