Stock investing can produce income in the form of capital gains when you sell a profitable investment.

If you used the Robinhood App this is what you need to know:

You don’t owe any taxes unless you sell your investment. Even if your stock goes up, you owe no taxes until you sell your stocks.

If you sell your stocks for a proit, that profit amount becomes taxable. It’s important to mention that shortly after the end of the year, Robinhood will send you tax forms that will clearly show how much your profits were. And, here’s a key point. Robinhood also send a copy of this form to the IRS, so don’t think you can get away with not reporting your profits.