If you’ve bought, sold, or traded cryptocurrency or other digital assets recently, you may soon see the new Form 1099-DA. Starting with the 2025 tax year, this tax form is part of the IRS’s effort to bring more clarity and consistency to how digital assets are reported on your taxes.
In this article, we’ll break down what this form is, why it exists, and what it means for you.
What is the purpose of Form 1099-DA?
Form 1099-DA is officially titled “Digital Asset Proceeds from Broker Transactions.” Its main job is to report the gross proceeds from the sale or exchange of digital assets. That means it shows how much money you made from selling crypto or NFTs, but not necessarily your profit or loss.
Starting in 2026, the form will also include more details like:
- Cost basis (what you originally paid)
- Acquisition and sale dates
- Fair market value
- Transaction identifiers like wallet addresses
This helps the IRS (and you) figure out whether you owe capital gains tax or if the income should be treated differently.
Where did Form 1099-DA come from?
Form 1099-DA was created by the IRS to address the growing popularity of digital assets like Bitcoin, Ethereum, NFTs, and stablecoins. Until now, reporting these transactions was a bit of a mess. Taxpayers had to rely on spreadsheets, downloads from exchanges, or third-party software to piece together their taxable activity.
The IRS saw the need for a standardized form to help both taxpayers and brokers report digital asset sales more accurately.
Who might receive a Form 1099-DA?
You’ll likely receive a Form 1099-DA if you:
- Sold or exchanged digital assets through a broker or exchange
- Used crypto to pay for something, like real estate
- Traded NFTs or stablecoins on a platform that qualifies as a digital asset broker
These brokers are now required to send Form 1099-DA to both you and the IRS if you’ve had qualifying transactions starting January 1, 2025.
It’s important to note that staking rewards, mining income, and airdrops won’t appear on this form. Those are still taxable, but they’ll be reported on other forms like 1099-MISC or 1099-INT, depending on the type of income.
What should you do if you get a Form 1099-DA?
If you receive a Form 1099-DA:
- Don’t ignore it. It means the IRS has a record of your digital asset activity.
- Check the details. Make sure the transactions listed match your own records.
- Report it accurately. You’ll use the information to complete your tax return, especially if you need to calculate gains or losses.
Even if the form doesn’t include your cost basis, you’re still responsible for tracking it. Keeping good records is key to avoiding overpaying your taxes.
