IRS unveils Form 1099-DA for 2025 crypto taxes

As the US tax filing season kicks in, Coinbase is reminding crypto holders that the Internal Revenue Service (IRS) launched Form 1099-DA, the new framework for disclosing digital asset transactions in the United States.

The IRS’s Form 1099-DA is the standard document for reporting proceeds from cryptocurrency and non-fungible token transactions beginning in 2025. This is the first year the tax revenue agency has implemented a unified structure for crypto transaction reporting. 

The draft was published in April 2024, as suggested by the notes from Coinbase. It would lay the ground for the coming shift in reporting. Crypto holders need the form to report gross proceeds from broker-sponsored digital transactions completed after January 1, 2025.

Taxpayers can expect to start receiving copies of this notice this week along with W-2 forms for other tax reports. This report has to be filed by April 15, 2026.

IRS document adds new tax reporting requirements for digital assets 

Before the new agency document was created, US taxpayers were solely responsible for reporting income or capital gains from digital asset transactions. Although that obligation remains unchanged, reporting methods will now follow a consistent format across all trading platforms within America’s jurisdiction. 

US customers who sold or exchanged cryptocurrency on any platform are expected to receive a Form 1099-DA from the exchanges. Broker platforms operating in the US must also document transaction proceeds in a format required by the IRS specifications. The structured reporting is similar to existing information returns used for stocks and other financial instruments.

In its blog statement published on Tuesday, Coinbase said it will make Form 1099-DA available to customers in mid-February. The exchange has also integrated CoinTracker’s reconciliation tools directly into its application.

After subscribing to a CoinTracker plan, users can automatically fill in missing cost basis information. The system also syncs future transfers and organizes transaction data for filing.

Users can access tax features in the Coinbase app by tapping the Taxes section, which includes IRS forms, custom tax reports such as gain and loss summaries, taxable activity, and flagged items requiring review. Customers can retrieve Form 1099-DA once it becomes available and review transfers lacking cost basis data before finalizing returns.

Last week, IRS-authorized e-file provider TaxBandits also added support for Form 1099-DA. The platform validates entries against IRS Business Rules with flexible data import tools to limit errors and penalties.

US tax filing changes and returns to keep in mind 

Reporting of information on Form 1099-DA is part of a larger overhaul of the federal adjustments. The standard deduction has been raised by $750, which is now $15,750 for single persons. For married couples, the standard deduction has been raised by $1,500, which translates into $31,500.

A new deduction for seniors was also introduced. Taxpayers aged 65 or older may qualify for an additional $6,000 deduction, or $12,000 for joint filers. The deduction is income-restricted but can be taken in addition to either the standard or itemized deduction.

Taxpayers in high-tax states may deduct up to $40,000 in state and local taxes, including income, sales, and property taxes. The previous cap was $10,000. This deduction applies only to those who itemize, but the higher threshold may encourage more filers to do so.

“This change can be significant and could produce a noticeable refund increase, especially when withholding was not adjusted. It can materially reduce tax liability,” O’Saben said.

If you're reading this, you’re already ahead. Stay there with our newsletter.