Do I Have to Report Crypto on My Taxes?

Updated for tax year 2025 (filed in 2026) · IRS-sourced

Yes. The IRS treats cryptocurrency as property, which means buying, selling, trading, and earning crypto can trigger tax obligations. Starting in 2025, crypto brokers are required to issue Form 1099-DA reporting your transactions.

What Crypto Transactions Are Taxable?

How Is Crypto Taxed?

Short-term capital gains apply to crypto held less than one year before selling. These are taxed at your ordinary income tax rate (10%–37%).

Long-term capital gains apply to crypto held one year or more. These benefit from preferential rates of 0%, 15%, or 20% depending on your taxable income.

Crypto income (mining, staking, airdrops, payments received) is taxed as ordinary income at your regular tax rate, based on the fair market value at the time you received it.

How to Report Crypto on Your Tax Return

Report capital gains and losses on Form 8949 and Schedule D. Report crypto income (mining, staking, payments) on Schedule 1 or Schedule C if you’re self-employed.

Starting with tax year 2025, crypto brokers must issue Form 1099-DA to report your digital asset transactions, similar to how stock brokers issue Form 1099-B.

Frequently Asked Questions

What if I lost money on crypto?

You can deduct capital losses against capital gains. If your losses exceed your gains, you can deduct up to $3,000 per year against ordinary income and carry forward the rest to future years.

Do I need to report crypto if I didn’t receive a 1099?

Yes. You are required to report all taxable crypto transactions regardless of whether you received a tax form. The IRS requires self-reporting of all income.

What about NFTs?

NFTs are treated the same as other digital assets. Selling an NFT for more than you paid triggers a capital gain. Creating and selling NFTs may be considered self-employment income.