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March 21, 2020
Question

I got a free stock or two from Robinhood and TurboTax believes that this is some form of income and I don't know the proper way to report a free stock on here.

  • March 21, 2020
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1 reply

DavidS127
March 21, 2020

It depends.  Your circumstances with regard to the free Robinhood stock determine how it is reported in TurboTax.

 

If it is associated with a Schedule C (self-employment income for a trader business you operate) you answer accordingly and you can double-click the box TurboTax shows you, to link it to your Schedule C.

 

If on the other hand it is a promotional payment associated with personal investing, it is not self-employment income, and when you enter the 1099-MISC you should designate it a "Robinhood incentive", and on the next screen designate it as either "prize winnings" or "manufacturer's incentive" depending on which you consider it to be. 

 

You should be able to go back to the Wages and Income>>Income from Form 1099-MISC section to designate the payment accordingly.

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