Do You Get a 1099 for Crypto? Complete Guide for 2026

Short answer: yes, you get a 1099 now. Starting with the 2025 tax year, most major US exchanges are required to send you Form 1099-DA. But here's the catch — getting a 1099 doesn't mean you just hand it to your accountant and call it a day. You still need to understand what it covers, what it misses, and what happens when the numbers look wrong.

The New Standard: Form 1099-DA

The IRS built Form 1099-DA specifically for digital assets. Starting with the 2025 tax year, US-regulated exchanges must send a 1099-DA to every customer who sold or exchanged crypto during the year. It reports gross proceeds and — for more recent transactions — cost basis too.

Which Exchanges Send 1099-DA?

• Coinbase ✅
• Kraken ✅
• Gemini ✅
• Robinhood ✅
• Binance.US ✅
• Cash App ✅
• PayPal / Venmo ✅
• Crypto.com ✅

Non-US exchanges — Binance.com, Bybit, OKX and others — are not required to file 1099-DA. But you still have to report those transactions yourself. No exceptions.

What 1099-DA Reports

• Gross proceeds from each crypto sale
• Date acquired and date sold
• Cost basis (for "covered" transactions — meaning ones the exchange tracked end-to-end)
• Short-term vs long-term classification

What If You Don't Get a 1099?

You still have to report. Full stop. You don't get a pass because the form didn't arrive. Common reasons it won't show up: you used a non-US exchange, a non-custodial wallet, or you only bought crypto and never sold.

What to Do With Your 1099

1. Double-check that the proceeds match your own records — discrepancies happen
2. Look at the cost basis figures — older purchases often show $0 because the exchange didn't have that data
3. Run everything through crypto tax software to get a complete, accurate Form 8949
4. Do not just copy the 1099-DA total onto Schedule D — you need the individual transaction breakdown on Form 8949

What If Your 1099-DA Is Wrong?

It happens more than you'd think. Contact the exchange and ask for a corrected form. In the meantime, you can file using your own accurate figures and attach an explanation. If the IRS sends a CP2000 notice later, respond with your documentation. Keep records of everything.

Real Example & Practical Application

Here's how this concept works in a real scenario:

• Set up: You complete a transaction
• Tax implication: Calculate based on jurisdiction rules
• Documentation: Keep records for authority requirements
• Reporting: Declare properly to avoid penalties
• Outcome: Correct tax compliance achieved

Common Mistakes & How to Avoid Them

• Incomplete record-keeping: Document every transaction with date, amount, cost basis, and proceeds
• Missing documentation: Export CSV from every exchange and wallet you use
• Incorrect classification: Understand whether you're an investor, trader, or business for tax purposes
• Delayed reporting: File on time or voluntarily correct before audit – penalties are severe if caught
• Ignoring deadline: Tax deadlines are strict; missing them triggers automatic penalties

Optimization Strategies

Minimize your tax burden legally:

• Use software to track all transactions automatically and reduce manual errors
• Plan transaction timing strategically to optimize tax outcomes
• Offset losses against gains in the same tax year where possible
• Understand holding period rules in your jurisdiction
• Consult a professional for complex multi-year or multi-country scenarios

FAQ: Quick Answers

Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.