How does backup withholding affect cryptocurrency investors on Robinhood?

1 answers

• Dec 28, 2021 · 3 years ago
  As a cryptocurrency investor on Robinhood, backup withholding is something you need to be aware of. Backup withholding is a tax withholding mechanism that requires Robinhood to withhold a portion of your earnings and send it to the IRS. This can happen if you don't provide your correct taxpayer identification number (TIN) or if the IRS notifies Robinhood that you're subject to backup withholding. So, keep your TIN up to date and accurate to avoid backup withholding on your cryptocurrency earnings.
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