In the future, Coinbase will issue Form 1099-DA to report all gains and losses from cryptocurrency for US users. Even if you didn’t receive a 1099 form from Coinbase, you are required to report all of your taxable income from cryptocurrency. Yes—crypto income, including transactions in your Coinbase account, is subject to U.S. taxes. Regardless of the platform you use, selling, trading, earning, or even spending cryptocurrency can have tax implications. Learn more about reporting obligations in our resource on how to report cryptocurrency on taxes. Even if you don’t get a 1099, you must still report any taxable income or gains.
Cryptocurrency
- If you didn’t receive a Coinbase tax form, you must gather and report the information yourself on your tax return.
- Gather transaction data from your account history (many exchanges let you export this) and use that information to complete Form 8949 or any relevant schedules.
- You can test out the software and generate a preview of your gains and losses completely for free by creating an account.
- If you’re selling property as a part of a business or trade, however, the IRS doesn’t consider said property a capital asset and taxes it as ordinary income.
The IRS looks at the „character“ of the gain or loss—your intent, or why you’re selling. Many tax preparation headaches can be avoided by syncing your wallets and exchanges with crypto tax software early and often. Some exchanges issue Forms 1099-B, 1099-K, or newer iterations like 1099-DA, while others do not issue tax forms at all. Inconsistent reporting standards mean that relying solely on client-provided tax documents from platforms like Coinbase, Binance, or Kraken may lead to major gaps in reporting. In 2026, mandatory broker reporting requirements will further complicate the landscape; but they won’t necessarily simplify it. To do your cryptocurrency taxes, you need to calculate your gains, losses, and income from your cryptocurrency investments in your home fiat currency (e.g. US Dollar, Australian Dollar, etc.).
Selected Guides
H&R Block includes several help files covering cryptocurrency issues and some context-sensitive help, but the guidance isn’t as thorough as it is in TurboTax. The Premium version, which supports crypto reporting, costs $95 for federal returns and $49 per state. Coinbase provides tax documents like the Form 1099-MISC (for users with $600+ in miscellaneous income, such as staking or referral rewards) and a detailed transaction history.
Step 4: Go to Taxes in Account and Choose Documents
Try CoinLedger, the platform used by more than 400,000 crypto investors around the world. In this guide, we’ll share the basics of how cryptocurrency is taxed and break down a simple 3-step process to help you report your Coinbase Pro taxes to the IRS. There’s a reason why Coinbase doesn’t provide tax forms to Coinbase Wallet users. In this guide, we’ll break down everything you need to know about Coinbase Wallet taxes and share a simple method for reporting your Coinbase Wallet transactions to the IRS in minutes. The IRS has also used the information from 1099 forms to send warning letters to Coinbase users. It’s reasonable to assume that discrepancies between Form 1099 and a taxpayer’s return can increase the risk of a cryptocurrency tax audit.
With CoinLedger, you can report all of your Coinbase Wallet transactions on your tax return in just four simple steps. Currently, Coinbase issues Form 1099-B to customers who have traded futures on the platforms. In this guide, we’ll break down everything you need to know about Coinbase’s tax reporting policies. To access the complete transaction history for your cryptocurrency investments through your desktop, follow the instructions below. Double-check your basis and acquisition dates to see whether you flipped tokens short-term or held them for years. Short-term gains (assets held one year or less) get taxed at ordinary rates, while long-term gains generally get a more favorable rate.
If any data looks off (e.g., missing cost basis), you may need to edit it manually using your Coinbase records. In 2015, Coinbase started a new platform for dedicated crypto traders. The platform was originally called GDAX, but changed its name to Coinbase Pro in 2018. The platform offered users advanced options to trade cryptocurrencies and low trading fees. For more information, check out our complete guide to how cryptocurrency is taxed.
Both forms aim to help authorities track offshore accounts and confirm accurate reporting. Cryptocurrency units are called coins, even though there aren’t any physical coins. You store coins and fractions of coins in a digital wallet under your control or use a custodial service similar to a financial brokerage. A few of the major exchange and wallet providers are Binance, Coinbase, Kraken, and eToro.
How To Get Coinbase Pro Tax Documents For 2025
Yes, Coinbase allows you to access your tax forms and document through Coinbase taxes. Tax forms, including 1099s, are available while you have an active Coinbase account. You can integrate your Coinbase Pro with your crypto tax software via APIs by following the steps below. You can link your Coinbase Pro with third-party crypto tax software. Clicking on the Statements option will take you to the profile overview page, where you can generate your account report and download your tax reports.
Why Can’t Coinbase Pro Generate My Tax Forms?
1099 forms are designed to provide information to the Internal Revenue Service (IRS) about certain types of income from non-employment-related sources. Put another way, 1099 forms are designed to report income that you received that wasn’t from your employer. In the past, Coinbase has shared customer information with the IRS. xcritical scammers In 2016, Coinbase was required to hand over data on over 8 million transactions after being served a John Doe Summons.
Understanding how to access your Coinbase 1099 and what to do with it can help you stay compliant with IRS regulations. This guide breaks down everything you need to know about cryptocurrency taxes, from the high level tax implications to the actual crypto tax forms you need to fill out. Not all users will receive Coinbase tax forms, even if they have taxable activity. If you didn’t receive a Coinbase tax form, you must gather and report the information yourself on your tax return. You must report all Coinbase capital gains and ordinary income, as there is no minimum threshold.
Once you’re finished importing your transactions from Coinbase Pro and any other cryptocurrency exchange you are using, you can generate a complete tax report with the click of a button. Coinbase Pro is one of the most popular cryptocurrency exchanges in the world. However, even serious traders often feel confused about how to report their transactions on the platform. While Form 1099-K once was a popular form for reporting cryptocurrency transactions, most exchanges have stopped issuing the form.
The mechanics of using cryptocurrency are often as simple as scanning a QR code or copying and pasting a long ID. What happens in the background, however, is far more involved than typical bank transactions since many distributed servers (rather than one bank or exchange) have to verify the transaction. If you are a bookkeeper, CPA, or enrolled agent preparing returns or advising clients who touch crypto in any capacity, you must get up to speed—immediately. Digital assets are no longer a fringe topic; they are increasingly mainstream financial instruments with complex and unique tax implications. Cryptocurrencies like bitcoin are treated as property by many governments around the world—including the U.S. Other forms of property that you may be familiar with include stocks, bonds, and real-estate.
The crypto section will integrate into your overall tax calculations, accounting for capital gains/losses and income. Crypto tax software like CoinLedger can automatically import your transactions from Coinbase and other platforms, helping you generate a complete tax report in minutes. If you’ve been trading, selling, or earning cryptocurrency through Coinbase, you may need to report your transactions for tax purposes. Coinbase issues 1099 forms to eligible users, xcritical scam summarizing their taxable activity.
To understand how much you’ll be paying in taxes on your Coinbase Pro transactions, let’s review the basics of cryptocurrency taxes. Other taxable transactions, https://scamforex.net/ such as selling or converting crypto, must be reported using your transaction history, as Coinbase does not issue a 1099-B. You can test out the software and generate a preview of your gains and losses completely for free by creating an account.
If you’ve traded NFTs on your Coinbase Wallet, you’ve likely incurred a taxable event. Buying NFTs with cryptocurrencies and selling NFTs are both subject to capital gains tax. File these crypto tax forms yourself, send them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct.
