However, Coinbase has no way of knowing David’s original cost basis. As a result, it’s likely that his cost basis will be ‘n/a’ on Form 1099-DA. It’s possible that your gain/loss form will be inaccurate if you’ve transferred crypto into or out of Coinbase (more on this below). Coinbase issues Form 1099-B to customers who’ve done futures trading on the platform. Currently, Coinbase issues Form 1099-MISC to customers who’ve earned $600 or more of income through staking, interest xcritical rezension rewards, and Coinbase Learn and Earn rewards.
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.
Unfortunately, keeping track of your taxes on your own can be difficult. Because transferring crypto between different wallets and exchanges is so common, it can be difficult to find information on cost basis needed for tax reporting. Coinbase Wallet transactions are subject to capital gains and ordinary income tax, just like all other cryptocurrency transactions. Because Form 1099-K was designed for payment processors and not cryptocurrency exchanges, the form shows gross transaction volume instead of gains. The tax forms seemed to show that investors who had accurately reported their taxes had severely underreported their tax liabilities. Starting in 2026, Coinbase and other major exchanges will be required to issue Form 1099-DA to all customers — a similar form designed to report gains and losses from digital assets specifically.
What tax forms does Coinbase send to the IRS?
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.
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 https://xcritical.solutions/ 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.
How Does Cryptocurrency Tax Software Help?
It also identifies investments to sell at a loss to reduce your tax bill. Many cryptocurrency investors use additional exchanges, wallets, and platforms outside of Coinbase Pro. The trouble with Coinbase Pro’s reporting is that it only extends as far as the Coinbase Pro platform. If you use additional cryptocurrency wallets, exchanges, DeFi protocols, or other platforms outside of Coinbase Pro, Coinbase Pro can’t provide complete gains, losses, and income tax information. Many cryptocurrency investors use additional exchanges, wallets, and platforms outside of Coinbase Wallet. The trouble with Coinbase Wallet’s reporting is that it only extends as far as the Coinbase Wallet platform.
Coinbase Pro Tax Reporting
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, summarizing their taxable activity.
Does Coinbase Wallet report to tax authorities?
Start by keeping detailed records, staying updated on regulatory developments, and consulting tax professionals who understand the evolving crypto landscape. The IRS also issued guidance in 2023 that may support claims of loss for worthless or abandoned assets, though you should speak with a tax advisor about how best to apply these rules. You can automatically import your Coinbase Pro transactions using an API connection or import them manually through a CSV file. Coinbase Wallet gives users control over their private keys, allowing them to safely store, transfer, and transact with cryptocurrency and NFTs.
TurboTax goes further than any other app, offering comprehensive Q&As and more—and more understandable—guidance than competitors. If you have more than that, TurboTax recommends using a tax aggregator like Bitcoin.Tax, CoinTracker, or xcritical rezension CryptoTrader. You can also import directly from many financial services like Ethereum, Fidelity Investments, and Robinhood.
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.
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. In 2016, Coinbase was required to hand over data on over 8 million transactions after being served a John Doe Summons.
If you’re a US taxpayer and have been using cryptocurrency but not paying taxes on any gains from it, you’re not alone. You’re also not compliant with IRS regulations, which could catch up to you someday. The agency might penalize you unless you can prove “reasonable cause.” Want to get started managing your taxes on Coinbase Pro and other exchanges?
Coinbase Pro can give you all the details you need to trade like a dedicated crypto trader, but it can only help with some of your crypto tax reporting. You can use cryptocurrency to pay for goods or services, invest, or simply exchange funds with someone else, whether for other cryptocurrencies or traditional currency. Let’s first make sure we’re on the same page when it comes to crypto tax prep. Although this requirement is not mandatory for the 2024 tax year, some platforms have already begun issuing 1099 forms voluntarily.
You Must Answer the “Digital Asset” Question on Your Tax Return
Going forward, discrepancies between your self-reported transactions and third-party reports may trigger IRS inquiries. This matters because gains from the sale of collectibles are subject to a maximum 28% capital gains tax rate, which is higher than the typical long-term capital gains rate for other assets. Starting in 2027, certain digital wallet providers will be required to collect Know Your Customer (KYC) information and issue Form 1099-DA to users and the IRS. At this time, it’s not yet clear whether Coinbase Wallet will be required to comply with these rules.
- 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.
- If you’ve used Coinbase for crypto transactions, retrieving your 1099 form and properly reporting your taxable events is crucial for tax compliance.
- Our informational articles reflect the latest tax guidelines from agencies worldwide and are regularly updated to be accurate, actionable, and current.
- Below, we answer those questions and explain all that’s relevant to taxes and cryptocurrency.
What is the Coinbase gain/loss form?
If you use additional cryptocurrency wallets, exchanges, DeFi protocols, or other platforms outside of Coinbase Wallet, Coinbase Wallet can’t provide complete gains, losses, and income tax information. It’s important to remember that this form alone is not enough to report your taxes. The 1099-MISC is meant to help users report miscellaneous income from rewards, but it does not show every taxable event — such as your capital gains and losses from cryptocurrency disposals. You can generate your gains, losses, and income tax reports from your Coinbase Pro investing activity by connecting your account with CoinLedger. Connect your account by importing your data through the method discussed below.
BOI Reporting Requirements: Avoid the $591 Daily Penalty!
Find Coinbase Pro in the list of supported exchanges and select the import method you prefer. Our content is based on direct interviews with tax experts, guidance from tax agencies, and articles from reputable news outlets. If you’re looking for a copy of your Coinbase transactions for your own records, here’s how you can get started. In this case, the burden of proof will be on David to prove that he bought his Bitcoin for $10,000. If you’ve met the requirements for receiving Form 1099-MISC from Coinbase, you’ll receive it by the end of February of the following year at the latest. Experts believe that mandatory 1099-DA reporting will lead to more warning letters and more audits.
Filing the right crypto form accurately is the best way to prevent issues later. At TokenTax, we create original content to educate and empower the many crypto investors we serve. Our informational articles reflect the latest tax guidelines from agencies worldwide and are regularly updated to be accurate, actionable, and current. Certified tax professionals research, write, and review each piece to combine industry expertise with rigorous fact-checking. Whether you’re navigating DeFi, NFTs, or complex trades, TokenTax is your trusted partner in the complex, evolving world of crypto taxes.
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.