24/12/28
How To Get Coinbase Pro Tax Documents For 2025
Both forms aim to help authorities track offshore accounts and confirm accurate reporting. Cryptocurrency units are called coins, even though there aren’t any physical coins. You store coins and fractions of coins in a digital wallet under your control or use a custodial service similar to a financial brokerage. A few of the major exchange and wallet providers are Binance, Coinbase, Kraken, and eToro.
Some of these transactions trigger capital gains tax, while others trigger ordinary income taxes. If you’re going to go it alone, we suggest you use TurboTax Premier. But do whatever you need to do to include tax-related cryptocurrency activity thoroughly and accurately on your income tax return. The IRS has required you to report cryptocurrency translocation for years now, so it will certainly scrutinize your records during an audit. If you’re selling property as a part of a business or trade, however, the IRS doesn’t consider said property a capital asset and taxes it as ordinary income.
Answer the crypto tax question on Form 1040
Even if you aren’t issued an official statement, you’re still on the hook to self-report. Gather transaction data from your account history (many exchanges let you export this) and use that information to complete Form 8949 or any relevant schedules. In other words, you need to do some seriously precise bookkeeping if you plan to use cryptocurrency. You can use some general accounting applications like Intuit QuickBooks Online, along with integrated apps or some extra data entry.
Still, it’s important to note that there are some situations where you may incur a tax liability even if you don’t ‘cash out’ to fiat currency. Two examples are earning cryptocurrency interest and trading your crypto for another cryptocurrency. Coinbase provides all customers with a gain/loss report — a summary that details every cryptocurrency disposal made scammed by xcritical on Coinbase that resulted in a capital gain or a loss. The IRS uses the information provided by Coinbase to verify that you reported any income generated from the platform on your tax return. If you’ve ventured into the world of digital currencies via Coinbase and need help understanding your tax obligations, you’re not alone. As experienced cryptocurrency accountants, we’ve helped many investors report their Coinbase taxes easily and accurately.
How To Get Coinbase Pro Tax Documents For 2025
File these forms yourself, send them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct. However, cryptocurrency exchanges have trouble tracking your gains, losses, and income if you’ve transferred your cryptocurrency into or out of the platform. In cases like this, your exchange won’t know the original cost basis of your assets — which means it may have trouble calculating your gains and losses. Because cryptocurrency is so easily transferable, investors often move their coins between different wallets and exchanges. As a result, it’s difficult for exchanges to provide their customers with accurate tax reporting information. It leverages automation to directly import crypto transactions from supported integrations and calculate gains and losses to determine tax implications.
- Coinbase Pro can give you all the details you need to trade like a dedicated crypto trader, but it can only help with some of your crypto tax reporting.
- Coinbase Wallet gives users control over their private keys, allowing them to safely store, transfer, and transact with cryptocurrency and NFTs.
- However, Coinbase has no way of knowing David’s original cost basis.
- Understanding how to access your Coinbase 1099 and what to do with it can help you stay compliant with IRS regulations.
- This guide will walk you through the steps to seamlessly transfer your Coinbase transaction history into TurboTax, ensuring you stay compliant with tax regulations.
To understand how much you’ll be paying in taxes on your Coinbase Pro transactions, let’s review the basics of cryptocurrency taxes. Other taxable transactions, such https://xcritical.online/ as selling or converting crypto, must be reported using your transaction history, as Coinbase does not issue a 1099-B. You can test out the software and generate a preview of your gains and losses completely for free by creating an account.
Cryptocurrency and Taxes: What You Need to Know Before Filing
A good bit of advice is to start keeping detailed records of all your crypto transactions from the start since reconstructing years of transactions could be difficult or even impossible. Keep in mind that custodial services, such as Coinbase, can do most of the legwork for you if you manage everything through them. It has grown in popularity over the last few years (based on research from Security.org, 28% of American adults own cryptocurrency in the US today, rising from just 15% in 2021).
Does Coinbase report small-time crypto traders?
The IRS looks at the “character” of the gain or loss—your intent, or why you’re selling. Many tax preparation headaches can be avoided by syncing your wallets and exchanges with crypto tax software early and often. Some exchanges issue Forms 1099-B, 1099-K, or newer iterations like 1099-DA, while others do not issue tax forms at all. Inconsistent reporting standards mean that relying solely on client-provided tax documents from platforms like Coinbase, Binance, or Kraken may lead to major gaps in reporting. In 2026, mandatory broker reporting requirements will further complicate the landscape; but they won’t necessarily simplify it. To do your cryptocurrency taxes, you need to calculate your gains, losses, and income from your cryptocurrency investments in your home fiat currency (e.g. US Dollar, Australian Dollar, etc.).
What happens if I didn’t receive a 1099 form from Coinbase?
Try CoinLedger, the platform used by more than 400,000 crypto investors around the world. In this guide, we’ll share the basics of how cryptocurrency is taxed and break down a simple 3-step process to help you report your Coinbase Pro taxes to the IRS. There’s a reason why Coinbase doesn’t provide tax forms to Coinbase Wallet users. In this guide, we’ll break down everything you need to know about Coinbase Wallet taxes and share a simple method for reporting your Coinbase Wallet transactions scammed by xcritical to the IRS in minutes. The IRS has also used the information from 1099 forms to send warning letters to Coinbase users. It’s reasonable to assume that discrepancies between Form 1099 and a taxpayer’s return can increase the risk of a cryptocurrency tax audit.
For example, crypto you received in exchange for services you provided as a self-employed individual would be reported on Schedule C. Investment income could go on Schedule D. Bitcoin was the first successful cryptocurrency (we have a guide on how to buy, sell, and manage it), and it remains the most popular. It’s so dominant that most other cryptocurrency coins fall under the umbrella of altcoins. Major altcoins include Cardano, Ethereum, Litecoin, Solana, and XRP, among others. So, whether you’re flipping a profile picture NFT or holding a tokenized piece of digital art, you must report any gain or loss. And if the underlying asset is considered a collectible, the tax rate may be higher.
Once you’re finished importing your transactions from Coinbase Pro and any other cryptocurrency exchange you are using, you can generate a complete tax report with the click of a button. Coinbase Pro is one of the most popular cryptocurrency exchanges in the world. However, even serious traders often feel confused about how to report their transactions on the platform. While Form 1099-K once was a popular form for reporting cryptocurrency transactions, most exchanges have stopped issuing the form.
Yes, Coinbase allows you to access your tax forms and document through Coinbase taxes. Tax forms, including 1099s, are available while you have an active Coinbase account. You can integrate your Coinbase Pro with your crypto tax software via APIs by following the steps below. You can link your Coinbase Pro with third-party crypto tax software. Clicking on the Statements option will take you to the profile overview page, where you can generate your account report and download your tax reports.
H&R Block includes several help files covering cryptocurrency issues and some context-sensitive help, but the guidance isn’t as thorough as it is in TurboTax. The Premium version, which supports crypto reporting, costs $95 for federal returns and $49 per state. Coinbase provides tax documents like the Form 1099-MISC (for users with $600+ in miscellaneous income, such as staking or referral rewards) and a detailed transaction history.
The mechanics of using cryptocurrency are often as simple as scanning a QR code or copying and pasting a long ID. What happens in the background, however, is far more involved than typical bank transactions since many distributed servers (rather than one bank or exchange) have to verify the transaction. If you are a bookkeeper, CPA, or enrolled agent preparing returns or advising clients who touch crypto in any capacity, you must get up to speed—immediately. Digital assets are no longer a fringe topic; they are increasingly mainstream financial instruments with complex and unique tax implications. Cryptocurrencies like bitcoin are treated as property by many governments around the world—including the U.S. Other forms of property that you may be familiar with include stocks, bonds, and real-estate.
