I got a Form 1099-DA from my crypto broker. What do I do with it?

Form 1099-DA is a brand-new IRS form for tax year 2025. It's the digital assets equivalent of a Form 1099-B — your broker (Coinbase, Kraken, Gemini, etc.) is now required to report your gross proceeds from cryptocurrency sales to both you and the IRS.

What 1099-DA reports:

• Gross proceeds from sales or exchanges of digital assets (crypto, NFTs, stablecoins) on or after January 1, 2025.
• The broker may also report your cost basis if they have it.

What you need to do:

• Check the Digital Asset question on Form 1040. You must answer "Yes" or "No" to the question: "At any time during 2025, did you: receive (as a reward, award, or payment for property or services); or sell, exchange, or otherwise dispose of a digital asset?" Answer truthfully — even if you had a loss.

• Match your 1099-DA to your own records. Brokers are reporting gross proceeds, but your tax liability depends on your cost basis (what you paid). If your broker doesn't have accurate basis data (common for assets transferred from wallets), you'll need your own records.

• Report on Form 8949 and Schedule D. Each taxable transaction goes on Form 8949. Short-term gains (held 1 year or less) are taxed as ordinary income. Long-term gains (held more than 1 year) are taxed at preferential rates (0%, 15%, or 20%).

• Don't ignore it. The IRS has a copy too. Unreported transactions flagged by a 1099-DA will trigger matching notices.

Important: Simply receiving crypto (as a gift, mining reward, or staking income) may also be taxable — the 1099-DA covers broker-reported sales, but you're still responsible for other taxable events. Use crypto tax software (Koinly, CoinTracker, TaxBit) to reconcile all your wallets.