What is a Crypto 1099 Form? Understanding Your Tax Forms

Cryptocurrency has revolutionized the way we think about money, investments, and financial freedom. But while the blockchain may be decentralized, the IRS certainly is not. If you've dabbled in crypto—whether through trading, staking, mining, or earning rewards—you may find yourself facing an unfamiliar piece of tax paperwork: the Crypto 1099 form.

So, what exactly is a Crypto 1099? Let’s break it down.

What is a 1099 Form?

In the U.S., the IRS uses 1099 forms to track non-employment income. You may have received one for freelance work (1099-NEC), bank interest (1099-INT), or investment earnings (1099-DIV).

When it comes to crypto, certain platforms are required to report your earnings and transactions to the IRS if they meet specific thresholds. These reports come in the form of Crypto 1099s.

Types of Crypto 1099 Forms

There isn’t one single “Crypto 1099.” Instead, there are several types of 1099s that may apply depending on how you earned or transacted with crypto. Here are the most common:

1. 1099-B (Proceeds from Broker and Barter Exchange Transactions)

• Reports crypto sales and related capital gains or losses.

• Includes details such as acquisition and sale dates, proceeds, and cost basis.

• Commonly issued by exchanges like Coinbase or Robinhood if they are considered "brokers."

2. 1099-DA (Digital Assets) – NEW

• Beginning in the 2025 tax season (for 2024 transactions), the IRS introduced Form 1099-DA specifically for digital asset reporting.

• This form is designed to provide more clarity and consistency around crypto transactions.

• It is expected to include gross proceeds, cost basis, and holding period.
  
  

3. 1099-MISC (Miscellaneous Income)

• Reports crypto income not related to sales, such as staking rewards, airdrops, or bonuses.

• You’ll receive this form if you earned over $600 in miscellaneous crypto income from a platform.

4. 1099-K (Payment Card and Third-Party Network Transactions)

• Issued if you received high-volume crypto payments—usually over 200 transactions and $20,000 in a year.

• Becoming less common for crypto after the IRS shifted to 1099-DA.

Do I Have to Report Crypto if I Didn't Get a 1099?

Yes. Even if you didn’t receive a Crypto 1099 form, you're still required to report all taxable crypto activity on your tax return. The IRS now asks a direct question on Form 1040:

"At any time during the year, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?"

Failure to report could lead to penalties or audits.

What Should You Do With a Crypto 1099?

1. Review the information – Check for accuracy in reported gains, losses, or income.

2. Report it on your tax return – Use Schedule D (for capital gains) or Schedule 1 (for income).

3. Use crypto tax software – Tools like CoinTracker, Koinly, or TaxBit can import 1099 data and auto-generate tax reports.

Final Thoughts

Crypto tax compliance is evolving rapidly. With the introduction of Form 1099-DA and stricter IRS regulations, it’s more important than ever to stay on top of your crypto activity. Receiving a Crypto 1099 is a sign that your transactions have been reported, so make sure you include them in your return.

When in doubt, consult a tax professional who understands digital assets. The blockchain may be immutable, but your tax return doesn’t have to be a mystery.

Related Blog

1. How to Withdraw Crypto Without Paying Taxes in 2025 (Legally & Safely)

2. 11 Legal Ways to Avoid Crypto Capital Gains Tax (2025 Guide)