Does Coinbase Report to the IRS? 2025

The software integrates with major exchanges and wallets using APIs or public wallet addresses, automatically importing transaction data. Your gains/loss report and 1099s will be available to download. The IRS has been getting much more aggressive about crypto enforcement, and they have ways of matching unreported crypto income to your SSN.

Buying NFTs with cryptocurrencies and selling NFTs are both subject to capital gains tax. With CoinLedger, you can report all of your Coinbase Wallet transactions on your tax return in just four simple steps. 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.

Digital Payments No Longer Ask for Trust — They Prove It

Until then, taxpayers still compute gains/losses themselves (e.g., via Form 8949/Schedule D).
If you’re outside the U.S., this rule may still affect you if you use a U.S. platform that treats you as a reportable customer.
Swaps on decentralized exchanges such as Raydium and 1Inch Network are treated the same as trades on centralized exchanges, in the sense that the IRS expects you to still report them.
While Form 1099-K once was a popular form for reporting cryptocurrency transactions, most exchanges have stopped issuing the form.

If you made a payment in cash for services provided by another to effect the sale of your digital assets, you have digital asset transaction costs allocable to the sale of your digital assets that may reduce your amount realized on the sale. The term “wallet” refers to a means of storing, electronically or otherxcritical, a user’s private keys to digital assets held by or for the user. Your amount realized equals the sum of the amount of cash you received plus the fair market value of any services you received to effect the sale reduced by your digital asset transaction costs allocable to the disposition of the transferred digital assets.

Q107. How do I determine my basis in digital assets I received following a hard fork? (Added Dec.15,

Instead, you may reduce your amount realized on your disposed digital assets by any amounts paid by you for transaction services to effect this transaction. Your amount realized equals the sum of the fair market value of the digital assets you received plus the fair market value of the transaction services you received to effect the exchange reduced by certain transaction costs allocable to the disposition of the transferred digital assets. Your amount realized equals the sum of the fair market value of the other property you received plus the fair market value of the transaction services you received to effect the exchange, reduced by any digital asset transaction costs allocable to the disposition of the digital assets.

Therefore, you do not need to report the disposition of these withheld units on your Federal income tax return. The amounts paid also may qualify as digital asset transaction costs. If you sell, dispose of, or transfer less than all of your units of the same digital asset from an unhosted wallet and fail to satisfy the requirements of a specific identification, as described in FAQ 82, you must identify the units sold, disposed of, or transferred, using the default identification rule. If you satisfy those two requirements, your identification is considered to be a “specific identification” of the basis and holding period of the digital asset units that were sold, disposed of, or transferred. The signature represents acknowledgement of receipt of the property described in Form 8283 on the date specified and that the donee understands the information reporting requirements imposed by section 6050L on dispositions of the donated property (see discussion of Form 8282 in FAQ 37 in Frequently Asked Questions on Virtual Currency Transactions). If you have held the digital asset for one year or less at the time of the donation, your deduction is generally equal to the lesser of your basis in the digital asset or the digital asset’s fair market value at the time of the contribution but does not include any amounts paid by you to effect the transfer.

Minting an NFT is not a taxable event unless you receive tokens or other compensation during the minting process. However, some wrappers alter your rights over the underlying asset, which may cause the IRS to treat them as a disposal, therefore taxable. Both DeFi wrappers and synthetic tokens occupy a gray area in regulation, because in many cases, wrapping tokens does not change ownership; therefore, it cannot be treated as a taxable exchange. Regardless of whether rewards are automatically compounded or manually claimed, the IRS expects income to be reported based on the fair market value of the rewards at the time they are earned. First, the deposit of assets to the pool may be treated as a disposal, depending on the mechanics of the protocol. Swaps on decentralized exchanges such as Raydium and 1Inch Network are treated the same as trades on centralized exchanges, in the sense that the IRS expects you to still report them.

What should I do if I receive a Form 1099-DA from an exchange?

For users with many trades or complex activity, working with a tax professional is recommended. Many tools, including TokenTax and CoinTracker, allow you to import your Coinbase transaction history directly via API. These firsthand experiences show how important it is to stay organized and proactive. Coinbase does not https://xcritical.solutions/ share raw transaction data with the IRS. The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice.

No. If you transfer digital assets from a wallet, address, or account belonging to you, to another wallet, address, or account that also belongs to you, then the transfer is a non-taxable event, except to the extent of any digital assets you use, or are withheld, to pay for transaction services to effect the transfer. You should report your gain or loss from the disposition of your digital assets on your Federal income tax return in U.S. dollars. You should report your gain or loss from the sale of digital assets on your Federal income tax return in U.S. dollars. Exchanges must collect and verify customer identities, maintain detailed records of all user transactions, and issue the various tax reporting forms, including the crypto tax 1099 form.

Fake Exchanges, Wallet Drainers and Rug Pulls: The New Crypto Epidemic of 2025

At that point, any gains or losses become real and reportable. “How do I report Coinbase on my taxes if I used multiple wallets?”, you might also ask. Unlike a traditional employer or broker that might withhold tax at the source, the platform simply records your transactions. When you use Coinbase, your taxable events (selling, swapping, spending, or xcriticalg crypto) need to be reported just like any other investment activity. You must report taxable crypto activity even if you never receive a 1099.

Two Tax Categories: Capital Gains and Income

For regular trading, they don’t send 1099-B forms anymore.For 2024 transactions (filing in 2025), the rules are changing again with new digital asset reporting requirements. Starting in 2026, American exchanges will be required to issue Form 1099-DA — detailing all gains and losses from digital assets. They are intended to foster better tax compliance and more accurate reporting of digital asset transactions. Self-custody wallets don’t always have access to your complete crypto transaction history — meaning that xcritical cheating they don’t have access to the data they need to accurately calculate capital gains and losses. Coinbase Wallet transactions are subject to capital gains and ordinary income tax, just like all other cryptocurrency transactions.

For Federal income tax purposes, the creation of a duplicate record of private keys to digital assets does not result in a single wallet that holds all of the digital assets held in the other wallets that originally stored these keys. The Internal Revenue Code and regulations require taxpayers to maintain records that are sufficient to establish the positions taken on Federal income tax returns, which may include records documenting receipts, sales, exchanges, dispositions or transfers of digital assets and the fair market value of the digital assets. Your gain or loss on the exchange of your digital assets for a debt instrument issued by the purchaser as a part of the transaction is the difference between your adjusted basis in the transferred digital assets and your amount realized on the exchange. Your gain or loss on the disposition of your digital assets for other property (not including digital assets differing materially in kind or extent or debt instruments issued as a part of the transaction) is the difference between your adjusted basis in the disposed digital assets and your amount realized on their disposition. If you exchange digital assets for other property, including for other digital assets differing materially in kind or extent or debt instruments issued as a part of the transaction, you will recognize a capital gain or loss. If you pay for services using digital assets, then you have disposed of the digital assets in exchange for the services provided and will have capital gain or loss on the disposition, regardless of whether the amounts paid also qualify as digital asset transaction costs.

Does Coinbase report small-time crypto traders?

DeFi platforms run on the xcritical, with no singular legal entity in charge. Taxation of crypto in decentralized finance (DeFi) is more complex than in centralized exchanges and NFT marketplaces. These royalties are not treated as capital gains because they represent compensation for creative work. Airdrops are also taxable the moment you gain control over the tokens, regardless of whether you requested or expected them. Staking rewards trigger income tax at the time the rewards become accessible to you, not when you choose to claim or trade them.

These aren’t official tax forms you submit to the government, though.
Just wanted to add some clarity here since I see people getting confused about what forms to expect.
Your gain or loss on the exchange of your digital assets for other digital assets is the difference between your adjusted basis in the transferred digital assets and your amount realized on the exchange.
Crypto tax rules are clearer now, but they still ask you, the taxpayer, to keep good records and report accurately.
The IRS lowered the reporting threshold to $2,500 for payments processed through third-party networks and marketplaces.
Generally, if you had any digital asset transactions, you check “yes,” but if not, you check “no.”

Demystify Crypto Taxes

Once you’ve completed these steps, you can connect your other exchanges and wallets in just a few clicks! Experts believe that mandatory 1099-DA reporting will lead to more warning letters and more audits. It’s reasonable to assume that discrepancies between Form 1099 and a taxpayer’s return can increase the risk of a cryptocurrency tax audit.

Obtaining tax documents from Coinbase is a necessary step for complying with tax regulations related to cryptocurrency transactions. Most of these platforms offer tiered pricing based on the number of transactions. The tax implications of cryptocurrency transactions are frequently misunderstood, so obtaining accurate documentation is essential. The specific reporting requirements impacting individual users depend on several factors, including the volume and nature of their transactions. Coinbase, as a regulated cryptocurrency exchange operating within established legal frameworks, is obligated to comply with tax reporting requirements. Yes, Coinbase allows you to access your tax forms and document through Coinbase taxes.

Q106. How do I calculate my income from digital assets I received following a hard fork? (Added Dec.15,

To develop your Coinbase Pro report on your mobile devices, you must use your mobile browser to visit the Coinbase Pro website. The report will be set to your email address shortly after you generate the report. The use of Koinly is flexible and also functions as a portfolio tracker, giving an overview of all your assets in one place. Koinly supports more than 700 integrations and is available in over 20 countries and functions using the tax law of the supported countries. Fill in the format you want to receive your document in and choose the start and end dates you desire.

While the process may be familiar to taxpayers who reported in previous years, it could be daunting for the hundreds of thousands of taxpayers expected to begin reporting for the first time, said Laura Walter, founder of the compliance service Crypto Tax Girl. “The stakeholders enrolled in this system are going to get surprised because only a small number know about these upcoming forms,” creating potential chaos, said Shehan Chandrasekera, chief of tax strategy for the crypto tax and accounting software CoinTracker. You have received the digital assets when you have dominion and control over the digital assets, which is generally the date and time the hard fork is recorded on the distributed ledger. You have dominion and control over the digital assets at the time you can transfer, sell, exchange, or otherxcritical dispose of the digital assets, which is generally the time the hard fork is recorded on the distributed ledger.

You can integrate your Coinbase Pro with your crypto tax software via APIs by following the steps below. It also identifies investments to sell at a loss to reduce your tax bill. You can link your Coinbase Pro with third-party crypto tax software. You can download whatever tax reports by clicking on the download button next to the document. Let’s take you on generating tax reports through the Coinbase Pro mobile application. 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.