Do I still have to report my crypto gains and losses on my taxes? However, transfers into and out of exchanges will continue to cause inaccuracies within these forms.įor more information, check out our complete guide to cryptocurrency 1099 forms. Unlike Form 1099-K, Form 1099-B is designed to report capital gains and losses. will be required to send Form 1099-B beginning in the 2023 tax year. While exchanges like send 1099-K to customers, other exchanges choose to send other 1099 forms.ĭue to the American infrastructure bill, all exchanges operating within the U.S. Are cryptocurrency exchanges required to send 1099 forms?Īt this time, there is no clear guidance on which 1099 forms exchanges are explicitly required to issue to their customers. However, Coinbase stopped issuing the form after 2020.īecause Form 1099-K shows gross transaction volume instead of capital gains and losses, thousands of Coinbase customers who accurately filed their tax returns received CP2000 warning letters from the IRS warning them about their unpaid tax liability.įor more information, read our guide: Why Coinbase Stopped Issuing Form 1099-K. In previous tax years, Coinbase issued Form 1099-K to customers. Why did Coinbase stop issuing Form 1099-K? It is not an 'entry' document, meaning you don't need to attach or 'include' it in your tax return.Ĭertain cryptocurrency exchanges (, eToroUSA, etc.) will send you a 1099-K if you have more than 200 transactions with more than $20,000 in volume. What is a 1099-K, and why did my exchange send me one?Ī 1099-K is an informational form to report credit card transactions and third party network payments that you have received during the year. Just like with other forms of property, you incur capital gains or losses when you dispose of your cryptocurrency and recognize income when you earn crypto.įor an in-depth overview of this process, please read our guide covering the fundamentals of crypto taxes. This means that cryptocurrencies like Bitcoin, Ethereum, XRP, and others must be treated like other forms of property (stocks, gold, real-estate) for tax purposes. The IRS treats cryptocurrency as property. We’ll also break down a simple method that can help you accurately report your cryptocurrency income on your tax return.

In this guide, we’ll answer all the questions you may have about Form 1099-K. If you received a Form 1099-K this year, you might be wondering whether the numbers on the form are accurate - and whether you can use the information on the form to file your tax return. In prior years, Form 1099-K has caused significant confusion amongst crypto investors - and has even led the IRS to send out thousands of warning letters to taxpayers suspected of noncompliance.

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