This income needs to be reported on your taxes. If you meet each of these three criteria, both you and the IRS will be sent a copy of your 1099-MISC.ġ099-MISC details the amount of income you have earned from Coinbase.
Received $600 or more in cryptocurrency from Coinbase Earn, USDC Rewards, and/or Staking. NOTE - As of 2021, Coinbase is no longer issuing form 1099-K to customers. Learn everything you need to know about your 1099-K from Coinbase here. 1099-K is not the document you use for reporting your crypto taxes. It does NOT report your gains and losses. NOTE - 1099-K reports your gross transaction proceeds from Coinbase. 
If you met all three of these requirements prior to 2021, Coinbase sent you AND the IRS a copy of 1099-K.
You executed 200 trades or more, whose total value is equal to or greater than $20,000* (OR met your state’s 1099-K reporting thresholds). #TRANSACTION HISTORY COINBASE APP PRO#
You were a Coinbase Pro or Coinbase Prime customer. In years prior to 2021, Coinbase sent you a 1099-K tax form if: This applies for all cryptocurrencies.Ĭoinbase sends a certain 1099 to both you (the account owner) and the IRS if you meet certain qualifying factors. Rates fluctuate based on your tax bracket as well as depending on whether it was a short term vs. You report this gain on your tax return, and depending on what tax bracket you fall under, you pay a certain percentage of tax on the gain. This means that capital gains and losses reporting rules apply to cryptocurrency similar to how they apply to stocks (another form of property).įor example, if you bought 0.1 BTC for $1,000 and then sold it two months later for $2,000, you have a $1,000 capital gain. individuals wondering how the IRS is aware of their cryptocurrency transactions and ultimately asking the question: Does Coinbase report to the IRS? The Tax Implications of CryptocurrencyĪs we have discussed in great detail in our Complete Guide to Cryptocurrency Taxes, cryptocurrency is treated as property for tax purposes. These actions from regulators have many U.S. Over the past 12 months, the tax collecting agency has sent out over 10,000 warning and action letters to early Coinbase customers who may or may not have been accurately filing their crypto gains and losses on their taxes. Over the past few years, the IRS has made it clear that they are making cryptocurrency tax enforcement a priority.
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