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How does backup withholding affect cryptocurrency investors on Robinhood?

Cates WaddellJan 04, 2025 · 7 months ago1 answers

What is backup withholding and how does it impact cryptocurrency investors on the Robinhood platform?

1 answers

  • Bryant HardingSep 26, 2021 · 4 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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