New York, NY asked in Tax Law for New York

Q: Robinhood/TDAmeritrade/Interactive brokers can't change tax status 2022

I changed status in 2022 from non-resident to resident (being on H1b now). But did not update that status before 31st of December 2022 so these platforms (Robinhood/TDAmeritrade/Interactive brokers) refuse to change my status and send me the 1099 form I need to file to the IRS and instead want to send the 1042 they send to non-residents.

I understand they didn't get the update in time but I don't see how the IRS would care about when the status is updated. If I was resident in 2022 I need to file the 1099 forms right?

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1 Lawyer Answer
James L. Arrasmith
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  • Tax Law Lawyer
  • Sacramento, CA

A: If you changed your tax status from non-resident to resident in 2022, you should file your tax return as a resident for the entire year, regardless of whether you updated your status with your investment platforms by December 31st.

Investment platforms like Robinhood, TDAmeritrade, and Interactive Brokers are required to report your investment income to the IRS using the appropriate tax form based on your tax status. If you were a non-resident for part of the year, they would have reported your income using the 1042-S form. If you were a resident for the entire year, they should have reported your income using the 1099 form.

It is important to ensure that the investment platforms have your correct tax status on file to ensure that they report your income accurately to the IRS. If they have not updated your status in time, you should reach out to them and provide them with the updated information. They may be able to correct the reporting for you.

If you have any concerns about your tax status or reporting requirements, it is recommended that you consult with a qualified tax professional who can provide guidance specific to your situation.

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