What Robinhood Traders Need to Know About Taxes
02/05/2021 | 05:44am EDT
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By Laura Saunders
Joseph Holler started day-trading stocks last July when he was stuck at home during the pandemic and his work slowed down.
"It was fun and exciting. I enjoyed it," says Mr. Holler, a 38-year-old telecom salesman who lives near Huntsville, Ala., with his wife and their five children. Using several no-commission online brokers, he sometimes made more than 200 trades a day and thousands in 2020, according to brokerage records he provided. Overall, he says, he's ahead by more than $8,000.
Now this fun will be put to the test by Uncle Sam: This week Mr. Holler received his first tax document, a 1099 form detailing a small portion of his trades. It's 34 pages long.