How the IRS taxes crypto
Two categories, two sets of forms. Capital gains on disposals, ordinary income on what you earn. The reconciliation behind those forms is where most returns go wrong.
Form 8949 & Schedule D
Every sale, swap and spend is a disposal. Each lot is reported on Form 8949 and totalled on Schedule D, short-term and long-term split out.
Ordinary income
Staking, mining, airdrops and crypto pay are ordinary income at fair market value on receipt, reported on Schedule 1 or Schedule C.
Form 1099-DA
Brokers now report your proceeds to the IRS on 1099-DA. If your return does not match, expect a CP2000 notice.
Where to find your tax documents
Every platform reports differently, and none of them reconcile across the others. Start with the guide for yours.
Crypto.com tax forms
Where to find your Crypto.com statements and 1099s, and what each one covers.
Venmo crypto documents
What Venmo issues, where to find it, and how to report Venmo crypto correctly.
Reporting staking rewards
Ordinary income at receipt, then capital gains on disposal. The US and UK method.
1099-DA explained
What the new broker form covers and how it interacts with your filing.
Wealthsimple crypto
What the platform reports, which forms you get, and what it leaves to you.
Crypto tax software
Koinly, CoinLedger and CoinTracker compared, and where each one gets it wrong.