IRS Form 1099-DA to Standardize U.S. Crypto Tax Reporting from 2025

TLDR

• The IRS has introduced Form 1099-DA to standardize crypto tax reporting starting in 2025.
• This new form will be used to report proceeds from cryptocurrency and NFT transactions.
• Crypto exchanges in the U.S. will be required to issue Form 1099-DA to users who sell or exchange digital assets.
• Coinbase will make Form 1099-DA available to customers by mid-February, integrating CoinTracker tools to simplify tax reporting.
• Taxpayers must file their crypto taxes by April 15, 2026, using the 1099-DA form alongside other standard tax forms.

The IRS has introduced Form 1099-DA, which will be used to report digital asset transactions starting in 2025. This marks the first time the IRS has implemented a unified framework for crypto tax reporting. Taxpayers in the U.S. will need this form to report proceeds from crypto transactions, including sales and exchanges of digital assets, when filing taxes for the year 2025.

IRS Form 1099-DA for Crypto Tax Reporting

The IRS created Form 1099-DA to streamline the reporting process for digital asset transactions. Starting in 2025, cryptocurrency exchanges must issue this form to customers who sell or exchange digital assets. Previously, individuals were responsible for reporting their crypto transactions, but now, the process will be standardized across all platforms.

Coinbase confirmed that it will provide Form 1099-DA in mid-February. This form will include all relevant transaction information for 2025. Crypto holders can access this form through Coinbase’s tax section, which also provides tax reports and summaries for gain and loss tracking.

This move is part of a broader IRS effort to make crypto tax reporting easier for taxpayers. The form is expected to include details of gross proceeds from crypto transactions made on exchanges operating in the U.S. These steps ensure that digital asset transactions are reported consistently across all platforms.

How to File Taxes with Form 1099-DA

Crypto holders will need Form 1099-DA to file taxes for 2025. The form will report income earned from digital assets, including sales and exchanges. These forms will be issued by exchanges like Coinbase, which will also help users reconcile their transaction data through tools like CoinTracker.

Taxpayers will need to use this form to report their crypto-related income. Coinbase users can access the tax section of the app to find their 1099-DA form. The platform has integrated CoinTracker tools to help users fill in missing data like cost basis and organize future transactions.

Form 1099-DA will be filed alongside other tax forms like the W-2. Taxpayers must submit their returns by April 15, 2026. As crypto tax reporting becomes more standardized, taxpayers should ensure all relevant information is included before submitting their returns.

Other Changes in IRS Tax Reporting

The IRS has also raised the standard deduction for tax filers. Single filers can now deduct $15,750, and married couples can deduct $31,500. Taxpayers aged 65 or older may also qualify for additional deductions, ranging from $6,000 to $12,000 for joint filers.

High-tax state residents can now deduct up to $40,000 in state and local taxes. This update increases the previous deduction cap from $10,000. Taxpayers who itemize deductions will benefit from this change, which could reduce taxable income.

Form 1099-DA will be an essential document for crypto tax reporting in 2025, ensuring that all crypto transactions are reported uniformly. Taxpayers must ensure they receive this form from exchanges to comply with IRS regulations.

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