What’s a 1099-DA? The new tax form crypto traders need to know about
Sep 3, 2025・5 min read
One effect of crypto’s move into the mainstream is that institutions can no longer ignore it. At both national and international levels, lawmakers are introducing policies to regulate the flow of crypto, including detailed rules and reporting procedures for taxation. In the United States, the Internal Revenue Service has added a new requirement for brokerages: Form 1099-DA for digital assets.
The IRS says Form 1099-DA will bring more transparency and consistency to crypto tax reporting, similar to the 1099-B for stocks. But the move has also left many crypto investors – especially new traders – wondering whether the form applies to them and, if so, what exactly they need to report.
In this guide, we'll tell you what you need to know.
What’s Form 1099-DA?
Form 1099-DA is an IRS information return for reporting sales and exchanges of digital assets on custodial brokerages like centralized exchanges (CEXs). It covers a range of transactions, including crypto-to-fiat and crypto-to-crypto trades, conversions to stablecoins, redemptions, and non-fungible token (NFT) sales on centralized marketplaces.
When does 1099-DA reporting take effect?
Starting with the 2025 tax year, brokerages must send the form to both the IRS and their customers, which means clients will receive these forms starting in January 2026. The initial round of 1099-DAs won’t include every detail required in future tax years. For 2025 crypto tax reporting, brokerages only need to report proceeds from digital asset sales and exchanges.
Beginning with the 2026 tax year, however, each 1099-DA must also include the cost basis for covered cryptocurrencies.
What is a covered asset?
A covered asset is one that was acquired on or after January 1, 2026 by a U.S. non-exempt user, and the asset was never transferred outside of the broker where it was acquired.
Cryptocurrencies that are not covered assets are considered noncovered assets, and exchanges are not required to report their cost basis upon disposition. However, users can provide their exchange with the cost basis for these assets, so the exchange has the complete records, making it easier for crypto traders to file taxes. Even if you choose not to provide your exchange with the cost basis, you should make sure to track this information so you don’t overpay on your taxes when filing.
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Who issues Form 1099-DA?
Form 1099-DA is issued by custodial U.S. platforms that facilitate the sale or exchange of digital assets for their customers. This includes mainstream American CEXs such as Coinbase, fintech apps like PayPal, and brokerages like Robinhood. Beginning in 2026, these platforms will issue 1099-DA forms to users who sell or exchange digital assets through them.
In contrast, web3 protocols and decentralized exchanges (DEXs) like Uniswap don’t have to issue 1099-DA forms because they’re non-custodial. Users trade directly from their own wallets without the exchange taking possession of their assets.
Who receives a 1099-DA?
Starting in 2026 (for 2025 transactions), any non-exempt U.S. taxpayer who transacts on a U.S. custodial exchange will receive a Form 1099-DA if they sell, exchange, or redeem digital assets through that platform. This form is also filed with the IRS.
What information does the 1099-DA include?
For each taxable disposition, a 1099-DA will include the name of the asset, the number of units sold, the date of sale, and the sales proceeds. It will also include other information to help you report on your tax return, such as the applicable checkbox on Form 8949. Just like all other information returns, it will also include the brokerage and the recipient’s name, address, and taxpayer identification number (TIN).
It’s important to note that tax basis may not be reported for certain transactions. Brokers are only obligated to report the cost basis of covered assets starting with those acquired on or after January 1, 2026. This means that brokers do not have to report tax basis for any 2025 dispositions. It is the taxpayer’s responsibility to track and report the cost basis of any dispositions of noncovered assets. Even after exchanges are required to report cost basis, remember that if you transfer an asset out of an exchange, it becomes noncovered. Therefore, you are responsible for tracking and reporting its cost basis upon disposition.
How to report Form 1099-DA when filing taxes
If you only use a CEX to buy, store, and trade digital assets, your 1099-DA will contain much of the information you need to complete Form 8949 during tax season. But if you transfer cryptocurrency to other exchanges or to self-hosted wallets, your 1099-DA will be incomplete and possibly inaccurate.
When you receive your 1099-DA, review the instructions on the form and compare the data on the form with your own records. To make this process easier, use a tax software solution like CoinTracker that connects with all crypto exchange APIs, decentralized applications (dApps), and wallet addresses to give a complete picture of your digital asset activity. Tools like CoinTracker’s Portfolio Tracker help reconcile the information in your 1099-DA and make any necessary adjustments before you file Form 8949. While you can’t amend a 1099-DA directly, you can supplement and modify the information on your tax return if the amounts reported do not agree to your records.
How does 1099-DA differ from other 1099 forms?
A few other tax forms share the “1099” label, and some complement or resemble the 1099-DA. In some cases, you might receive multiple 1099 forms from the same or different brokerages before tax day. While these forms are similar in some ways, each serves a specific reporting purpose:
- 1099-B: The key difference between Form 1099-DA and Form 1099-B is that Form 1099-B reports sales of stocks and other traditional assets rather than cryptocurrencies.
- 1099-MISC: This form reports various types of income, including rewards earned on an exchange, and is typically issued by exchanges when rewards are at least $600.
- 1099-NEC: The “NEC” in 1099-NEC is for “nonemployee compensation,” which refers to any payments (including cryptocurrency) made to independent contractors or freelancers.
- 1099-INT: This form reports interest income, like interest earned from savings accounts, bonds, and certain lending activities.
- 1099-DIV: This form is used to report dividends and other distributions received.
Keep crypto taxes compliant with CoinTracker
1099-DA forms make it easier to track digital asset transactions, but they don’t tell the whole story. For complete crypto tax reports, you need comprehensive software like CoinTracker that links to exchange APIs and public wallet addresses to capture all activities, including staking and yield farming, and calculate gains and losses. CoinTracker also offers tools like tax-loss harvesting to lower your yearly tax bill through strategic sales.
Get started for free and see how CoinTracker simplifies crypto recordkeeping and reporting.
Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.