There’s a new tax form coming your way for the 2025 tax year. Form 1099-DA will simplify filing capital gains taxes on cryptocurrencies and other digital assets. Since it’s a new form, let’s break down its purpose so you’re prepared when it arrives in early 2026.
Even if you didn’t receive a 1099-DA for previous tax years, remember: cryptocurrency transactions are still taxable. Here’s what you need to know to stay compliant.
Do You Have to Pay Taxes on Crypto?
Yes, cryptocurrencies and digital assets are taxable. They’re classified as property under tax law, meaning:
- Acquiring crypto isn’t taxable.
- Selling or spending crypto triggers capital gains tax.
Key Rules:
- Capital Gains: Profit from selling crypto is taxed. Losses can offset gains.
- Wash Sale Exception: Unlike stocks, crypto isn’t subject to the 30-day wash sale rule. You can repurchase immediately and still claim losses.
- Spending = Selling: Using crypto to buy goods/services counts as a taxable sale.
Examples of Taxable Digital Assets:
- NFTs
- Stablecoins (e.g., USDT)
- Memecoins (e.g., Dogecoin)
- Gaming platform tokens
👉 Learn how to track crypto transactions for taxes
How Form 1099-DA Works
For 2025 taxes, brokers will issue 1099-DA forms in early 2026 to report crypto sales. Key details:
- Reported to the IRS: Ensures transparency.
- Cost Basis: Optional in 2025; mandatory starting 2026.
- Multi-Platform Sales: Cost basis may be missing if assets were bought/sold across exchanges.
Action Step: Maintain detailed records of all transactions, including:
- Date acquired/sold
- Amount spent/earned
- Transaction IDs (for blockchain verification)
FAQ: Crypto Taxes Without a 1099-DA
Q: Do I owe taxes if I don’t get a 1099-DA?
A: Yes. The IRS requires reporting all crypto gains/losses, even without the form.
Q: How do I file taxes without a 1099-DA?
A: Use:
- Self-kept logs (spreadsheets or apps).
- Blockchain explorers (searchable via transaction IDs).
- Crypto-friendly tax software (e.g., TurboTax Crypto).
Q: What if I missed past years?
A: File amended returns with a tax pro to avoid penalties.
Crypto in Retirement Accounts
Holding crypto in a 401(k) or IRA changes tax treatment:
- Traditional Accounts: Taxed upon withdrawal (age 59½+ to avoid penalties).
- Roth IRAs: Tax-free withdrawals if rules are met.
Caution: Crypto’s volatility makes it risky for retirement funds. Consult a financial advisor before allocating.
Legislative Updates
While some politicians advocate for crypto tax exemptions, current law treats crypto as property. Any changes require Congressional approval.
👉 Stay updated on crypto tax laws
Final Tips
- Track every transaction—even small ones.
- Use tax software or hire a crypto-savvy CPA.
- Plan for 2025: Expect stricter reporting with 1099-DA.
By staying organized, you’ll navigate crypto taxes confidently—no surprises when 2026 rolls around.