Your 1099-DA: What to Expect in 2026

LEGAL DISCLAIMER

Important Notice: This information is for educational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex, and everyone's situation is unique. The information provided here is based on current IRS regulations as of November 2025 and is subject to change.

This article provides general information about Form 1099-DA and should not be relied upon as tax advice. Please consult a qualified tax professional, certified public accountant (CPA), or tax attorney for advice specific to your personal circumstances and tax situation.

This content is designed to help you understand what to expect from Form 1099-DA, but you remain responsible for ensuring compliance with all applicable tax laws.

For official IRS guidance about Form 1099-DA, please visit www.irs.gov/Form1099DA or consult with a tax professional.

Your 1099-DA: What to Expect in 2026

If you traded cryptocurrency with us in 2025, you'll receive one or more tax forms called 1099-DA in early 2026. This article explains everything you need to know about this new form—in plain English.

What Is Form 1099-DA?

Form 1099-DA (officially titled "Digital Asset Proceeds From Broker Transactions") is the IRS's new tax form specifically designed for cryptocurrency and digital asset transactions. It's similar to Form 1099-B, which stock investors have received from their brokers for decades.

Simple version: It's an official summary of your crypto trading activity for the year that helps you file your taxes accurately.

The formal definition: Form 1099-DA is an information return that custodial brokers (like cryptocurrency exchanges) must file with the IRS and furnish to customers to report sales, exchanges, and certain other dispositions of digital assets.

Why It's Called "1099-DA"

The form number follows IRS naming conventions:

1099: The series of forms used to report various types of income
DA: Stands for "Digital Asset"

Other 1099 forms you might recognize include:

1099-B: Broker transactions (stocks, bonds)
1099-INT: Interest income
1099-DIV: Dividend income
1099-MISC: Miscellaneous income

Form 1099-DA is the cryptocurrency equivalent of 1099-B, but specifically designed for digital assets.

When Will You Receive It?

You'll receive your 1099-DA form(s) by February 17, 2026 for all cryptocurrency trades you made during calendar year 2025.

The timeline:

January 1 - December 31, 2025: Your trading year
February 1 - February 17, 2026: We prepare and send your form(s)
February 17, 2026: Deadline for exchanges to furnish forms to customers
April 15, 2026: Typical tax filing deadline (use your 1099-DA to file)

How you'll receive it:

Account dashboard (downloadable PDF)

The IRS receives an identical copy at the same time, so the information matches exactly.

What Information Will Be On Your 1099-DA?

For 2025 trades (forms issued in 2026), your 1099-DA will show the following information for each transaction:

Transaction Details:

Cryptocurrency name (e.g., Bitcoin, Ethereum, Litecoin)
Digital Token Identifier (DTIF code) if available
Number of units sold (e.g., 0.5 Bitcoin)
Date acquired (when you originally bought it) - if known
Date of sale (when you sold or exchanged it)

Financial Information:

Gross proceeds (the total amount you received from the sale) - REQUIRED for 2025
Cost basis (what you originally paid for it) - OPTIONAL for 2025 (we may include it to help you)

For 2025 Only: Exchanges are required to report gross proceeds but cost basis reporting is optional. We may voluntarily include cost basis information to help you, but we're not required to for 2025 trades.

Starting in 2026: For cryptocurrency purchased in 2026 and later ("covered securities"), we'll be required to report cost basis, making your tax calculations even easier.

Critical Information: You May Receive MULTIPLE Forms

This is one of the most important things to understand about Form 1099-DA:

You won't receive just one form covering all your trades. You'll typically receive a separate 1099-DA form for each type of cryptocurrency you traded.

Why Multiple Forms?

Each cryptocurrency is treated as a distinct asset for tax purposes, just like Apple stock and Microsoft stock are reported separately.

The IRS requires separate reporting because each cryptocurrency has its own:

Purchase history
Cost basis
Sale dates
Gain or loss calculations

Real-World Examples

Example 1: Sarah's Multi-Crypto Portfolio

Sarah traded 6 different cryptocurrencies in 2025:

Bitcoin
Ethereum
Litecoin
Cardano
Solana
Polygon

Result: Sarah will receive up to 6 separate 1099-DA forms in early 2026 (one for each cryptocurrency she traded).

What Sarah needs to do: Report all 6 forms on her tax return using Form 8949 and Schedule D.

Example 2: Mike's Bitcoin-Only Strategy

Mike only bought and sold Bitcoin throughout 2025.

Result: Mike will receive 1 form showing all his Bitcoin transactions.

Example 3: Elena's Multi-Exchange Trading

Elena trades on three different platforms:

Bitcoin and Ethereum on our exchange
Cardano on Exchange B
Solana on Exchange C

Result: Elena will receive 4 total 1099-DA forms:

2 forms from us (one for Bitcoin, one for Ethereum)
1 form from Exchange B (for Cardano)
1 form from Exchange C (for Solana)

What Elena needs to do: Collect forms from all three exchanges and report all of them on her tax return.

Special Rules for Stablecoins

If you trade stablecoins (cryptocurrencies designed to maintain a stable value pegged to the U.S. dollar, such as USDC or USDT), there are special reporting rules you need to understand.

The $10,000 Stablecoin Threshold

Under IRS regulations, there's a de minimis threshold for stablecoin reporting:

Under $10,000 in stablecoin sales per year:

We are NOT required to report these transactions on a 1099-DA
You will NOT receive a form for stablecoin-only trades under this amount
BUT: You still MUST report these trades on your tax return

Over $10,000 in stablecoin sales per year:

We WILL report these transactions on a 1099-DA
The form will show aggregate (total) sales, not every individual transaction
You WILL receive this form and must report it

Why Is There a Threshold?

The IRS recognizes that many people use stablecoins for payments and transfers (not just investment), similar to how people use regular U.S. dollars. The $10,000 threshold reduces paperwork burden for small transactions while still capturing larger trading activity.

Stablecoin Reporting Examples

Example: Alex's Stablecoin Activity

Alex's 2025 stablecoin trades:

January-June: $4,000 in USDC trades
July-December: $3,500 in USDC trades
Total: $7,500

Result: Alex will not receive a 1099-DA for stablecoins (under $10,000 threshold)

What Alex must do: Even without a form, Alex MUST report all $7,500 in stablecoin trades on his tax return with proper gain/loss calculations.

Example: Jordan's Stablecoin Activity

Jordan's 2025 stablecoin trades:

Made 100 USDC transactions totaling $25,000 in sales

Result: Jordan will receive 1 form showing aggregate stablecoin proceeds of $25,000

What the form shows:

Total proceeds: $25,000
Asset type: USDC (stablecoin)
Note: This is aggregate reporting (not 100 individual transaction lines)

How Many Forms Will You Receive? Quick Reference

Here are common scenarios:

Scenario 1: Simple Trader

Traded only Bitcoin
Expect: 1 form

Scenario 2: Diversified Trader

Traded 6 different cryptocurrencies
Expect: Up to 6 forms (one per cryptocurrency)

Scenario 3: Stablecoin Only (Under Threshold)

Only traded USDC totaling $8,000
Expect: 0 forms (but still must report on taxes!)

Scenario 4: Stablecoin Only (Over Threshold)

Only traded USDC totaling $15,000
Expect: 1 form (aggregate reporting)

Scenario 5: Mixed Trading

Traded Bitcoin, Ethereum, and $12,000 in USDC
Expect: 3 forms (one for each)

Scenario 6: Multiple Exchanges

Traded 3 cryptocurrencies on our platform + 2 elsewhere
Expect: 5 forms total (3 from us, 2 from other exchange)

What to Do With Your 1099-DA Forms

Once you receive your form(s), here's what happens next:

Step 1: Review for Accuracy

Check each form carefully:

✅ Your name and taxpayer ID are correct
✅ The cryptocurrency types match what you traded
✅ The dates and amounts look reasonable
✅ There are no obvious errors

Step 2: Contact Us If You Find Errors

If you notice any errors:

Contact our customer support immediately
Specify which form has the error (which cryptocurrency)
Don't file your taxes yet until the issue is resolved
We'll investigate and issue a corrected form if needed

Corrected forms can delay your tax filing, so review promptly when you receive forms in February.

Step 3: Provide to Your Tax Preparer or Tax Software

You'll use the information from your 1099-DA(s) to complete:

Form 8949 (Sales and Other Dispositions of Capital Assets)

- This form lists each transaction individually

- If you have multiple 1099-DAs, you'll list transactions from all of them

Schedule D (Capital Gains and Losses)

- This form summarizes your total gains and losses

- Attaches to your Form 1040

Your tax software or tax professional will know exactly how to handle multiple 1099-DAs—it's a standard process, similar to handling multiple 1099-Bs from stock trading.

What Transactions Are Included?

Your 1099-DA will include:

Selling cryptocurrency for U.S. dollars
Example: You sell 1 Bitcoin for $45,000
Exchanging one cryptocurrency for another
Example: You trade 5 Ethereum for 0.5 Bitcoin
Using cryptocurrency to purchase goods or services (if done through our platform)
Example: You spend 0.1 Bitcoin to buy a gift card
Stablecoin trades over $10,000 (in aggregate)
Example: You made $15,000 in USDC transactions

What's NOT Included (But May Still Be Taxable)

Your 1099-DA will NOT include:

Stablecoin trades under $10,000 (but you still must report these yourself)
Transactions on other exchanges (you'll get separate forms from them)
Purchases (buying crypto with dollars doesn't appear on 1099-DA)
Transfers between your own wallets (not taxable events)
Some income types:
Staking rewards
Mining income
Airdrops
Interest from crypto lending

Important: Just because something doesn't appear on your 1099-DA doesn't mean it's not taxable. Consult a tax professional about all your crypto activities.

Cost Basis: Understanding the 2025 Transition

For 2025 (the first year of 1099-DA reporting), cost basis reporting works differently:

For 2025 Trades (Reported in 2026):

Gross proceeds: Required (we must report this)
Cost basis: Optional (we may include it to help you, but not required)

What this means: You may need your own records to accurately calculate gains or losses. Keep good records of:

When you bought each cryptocurrency
How much you paid (including fees)
All transaction confirmations

Starting in 2026 (For Assets Acquired After 2025):

Gross proceeds: Required
Cost basis: Required for "covered securities" (crypto acquired in 2026 and later in accounts where we provide custody)

"Covered securities" are digital assets:

Acquired after 2025
Acquired for cash or other digital assets
Held in an account where we provided custodial services
Held continuously until sale

"Noncovered securities" are digital assets:

Acquired before 2026
Transferred in from other wallets/exchanges
Acquired through means other than purchase (airdrops, mining, staking)

For noncovered securities, you're responsible for tracking and reporting cost basis.

What If You Traded on Multiple Exchanges?

You'll receive separate 1099-DA forms from each exchange where you traded. This is normal and expected.

Important reminders:

Collect all forms from all exchanges before filing your taxes
Keep them organized (create a tax folder, digital or physical)
Report all forms on your tax return—don't accidentally leave any out
Verify you received all expected forms based on where you traded

Pro tip: Create a checklist in early 2026 of all exchanges where you traded in 2025, then check off each one as you receive its 1099-DA.

What If You Don't Receive a 1099-DA?

There are legitimate reasons you might not receive a 1099-DA:

Reason 1: Under the stablecoin threshold

You only traded stablecoins and total sales were under $10,000

Reason 2: No taxable transactions

You only bought cryptocurrency (didn't sell or exchange)
Purchases aren't reported on 1099-DA

Reason 3: Non-reporting platforms

You traded on decentralized exchanges or platforms not yet subject to reporting requirements

Reason 4: Timing

The exchange is late in sending it (happens sometimes)

Critical reminder: Even if you don't receive a 1099-DA, you're still required to report all cryptocurrency transactions on your tax return. The form is a helpful tool, but not receiving it doesn't eliminate your reporting obligation.

Tips for Organizing Multiple 1099-DAs

Managing multiple forms doesn't have to be complicated. Here's a simple system:

Step 1: Create a Tax Folder

Digital: Create a folder on your computer or cloud storage
Physical: Use a file folder or envelope

Step 2: Track Expected Forms

List all exchanges where you traded
Note which cryptocurrencies you traded on each
Estimate how many forms to expect

Step 3: Collect Forms as They Arrive

Download immediately when available
Save with clear filenames: "2025_1099DA_[Exchange]_[Crypto].pdf"
Check off your tracking list

Step 4: Verify Completeness

By mid-February, confirm you received all expected forms
Contact exchanges if forms are missing

Step 5: Provide to Tax Preparer

Give all forms to your tax professional
Or upload all forms to your tax software

Common Questions

Q: Will all my cryptocurrencies be on one form?

A: No. You'll typically receive separate forms for each cryptocurrency type you traded.

Q: What if I made 100 Bitcoin trades—will I get 100 forms?

A: No. You'll get one form for Bitcoin showing all your Bitcoin transactions for the year.

Q: Do small trades matter?

A: Yes. All cryptocurrency sales and exchanges are reported, regardless of dollar amount. There's no minimum threshold for individual transactions.

Q: What if I bought crypto but didn't sell?

A: You won't receive a 1099-DA. The form only reports sales, exchanges, and dispositions—not purchases.

Q: Can I get my 1099-DA early?

A: No. Exchanges have until February 17 to issue forms. We can't release them early because we need to finalize all transactions and perform quality checks.

Q: What if I lost money on crypto? Will I still get a 1099-DA?

A: Yes. The form reports transactions regardless of whether you had gains or losses.

The Bottom Line

Form 1099-DA is designed to make crypto tax filing easier and more accurate. Yes, you may receive multiple forms if you trade multiple cryptocurrencies, but this is completely normal and expected.

Key takeaways: