Crypto 1099-DA tax guide for 2026

Form 1099-DA (Digital Asset Proceeds From Broker Transactions) is the new IRS reporting form that crypto exchanges, brokers, and custodial platforms must issue starting for tax year 2025. It reports your total proceeds from crypto sales and dispositions — similar to a 1099-B for stocks. You'll receive a 1099-DA from any compliant platform where you traded, sold, or exchanged digital assets during 2025.

It depends on how long you held the asset and how you acquired it. Gains on crypto held more than one year are taxed at preferential long-term capital gains rates (0%, 15%, or 20% depending on income). Gains on crypto held one year or less are taxed as ordinary income at your marginal rate. Mining rewards, staking income, and airdrops are treated as ordinary income when received, then subject to capital gains treatment when you later sell.

Yes. Every disposition of cryptocurrency is a taxable event regardless of whether your exchange issues a form. If you used a non-compliant broker, a DEX, or a self-custodied wallet, you're still responsible for calculating and reporting your gains and losses. The 1099-DA rollout is phased, and many platforms are not yet required to report — your obligation to file remains regardless.

If you receive crypto as payment for services — freelance work, mining, active staking, or node operation — it's treated as self-employment income at fair market value when received. You owe self-employment tax (15.3% on net earnings) plus ordinary income tax on that amount. The calculator above estimates your SE tax and federal income tax if you enter that crypto income as net profit.

Capital losses on crypto offset capital gains dollar for dollar. If your losses exceed your gains, up to $3,000 in net capital loss can be deducted against ordinary income per year. Additional losses carry forward to future tax years. Note: wash-sale rules do not currently apply to cryptocurrency, so you can sell at a loss and immediately rebuy without triggering a disallowed loss (this may change with future legislation).

Cost basis is what you paid for the asset (purchase price plus fees). The 1099-DA from your broker should include cost basis for assets they custodied from acquisition. For crypto acquired on another platform or in a self-custodied wallet, you'll need your own records. The IRS allows specific identification, FIFO, or HIFO accounting methods — crypto tax software automates this across wallets and exchanges.

TaxSlayer Self-Employed, TurboTax Premium, and H&R Block Premium all support importing 1099-DA forms and crypto transactions. For traders with hundreds or thousands of transactions across multiple wallets, dedicated crypto tax software (Koinly, CoinTracker) can export a consolidated 8949 that imports directly into your tax software. TaxSlayer Self-Employed is the most cost-effective option for crypto income combined with self-employment income.

If your total tax liability — including crypto capital gains and any self-employment income — will exceed $1,000 for the year, you may owe quarterly estimated payments. The 2026 due dates are April 15, June 16, September 15, and January 15, 2027. Crypto gains realized in Q1 are due April 15, and so on. Calculate estimated payments after each quarter where you realize significant gains.