What is Form 1099-DA, and what should I do with mine?
Form 1099-DA is the IRS information return a US crypto broker sends to you and to the IRS when you sell or exchange digital assets. Reporting began with transactions on or after January 1, 2025. The catch: it shows proceeds but often leaves out your cost basis, so the math is still yours.
Bottom line
- Do it yourself with the IRS instructions if you have one exchange account, few sales, and purchase records you trust.
- Hire a CPA or enrolled agent if you moved coins between wallets, used more than one exchange, or the form's numbers don't match your records.
- Skip a paid session unless you want to understand your own records first, before you hand them to a preparer.
I'm John Alewine. I teach crypto in plain English from Kansas City. This guide is education, not tax advice and not tax preparation. Confirm anything that affects your return with a CPA or enrolled agent. For a rough number before you talk to anyone, my free crypto tax estimator needs no signup.
If you want the short definition first, see what a 1099-DA is. For the bigger picture, my crypto taxes guide covers how crypto is taxed in general. This page sticks to the form itself.
Want to go through your 1099-DA together?
In a one-on-one session I explain your form, your records and what your preparer will ask for, in plain English. It is education only. I don't prepare returns. You can also call (816) 631-2604.
Key facts
- Broker reporting on Form 1099-DA started with transactions on or after January 1, 2025.
- Brokers must report basis only for assets acquired after 2025 and held in the same custodial account.
- Designated stablecoin sales up to $10,000 a year per broker can go unreported under the optional method.
- Specified NFT sales up to $600 a year per broker can go unreported under the optional method.
- Underreporting can bring an accuracy-related penalty of 20% of the underpaid portion.
What Form 1099-DA is, and what it is not
Form 1099-DA is part of the Form 1099 family of information returns from the Internal Revenue Service. It covers sales and exchanges of cryptocurrency and other digital assets that a broker carried out for you. The official title is Digital Asset Proceeds From Broker Transactions.
It is not a tax bill. Proceeds are not profit. Your gain is proceeds minus cost basis, and the basis box can be blank. It is also not a list of everything you did. The IRS says brokers do not report rewards and staking payments on this form. A company that only provides wallet hardware or software that lets you control your own keys is not treated as a middleman for this form, so self-custody activity usually shows up on no form at all. And it doesn't replace your return. You still report sales on Form 8949.
Our data: what 20 search-result pages say about Form 1099-DA (checked November 1, 2026)
Method: on November 1, 2026 I ran three searches: "form 1099-da", "1099-da cost basis" and "how to report 1099-da". This is a snapshot of those results on that date. I kept the 20 distinct article and help pages. I skipped the IRS form PDF and unrelated pages. I read 10 pages in full and judged the other 10 from their search snippets only. One of those 10 would not load when I tried to open it, so it stays a snippet judgment. I read strictly. If a point wasn't plainly stated in what I saw, I counted it as no. For example, a page saying basis reporting starts "for 2026 transactions" got a no on the acquisition-date check. Because snippets are short, the counts for the 10 snippet-only pages probably undercount what those pages say.
| Check | Pages (N of 20) |
|---|---|
| Says 2025 forms report gross proceeds only (basis optional) | 11 of 20 |
| Says basis is required for covered assets acquired on or after January 1, 2026 | 8 of 20 |
| Mentions the stablecoin or specified NFT reporting thresholds | 2 of 20 |
| Explains reconciling the form to Form 8949 | 10 of 20 |
| Mentions wallet-by-wallet basis or Rev. Proc. 2024-28 | 2 of 20 |
| Shows a 2026 update date | 6 of 20 |
Download the 20 rows behind this table: our-data-2026-11-01.csv (each page checked, the URL, each yes/no, and whether we opened it in full).
What this means for you: just over half the pages (11 of 20) say plainly that 2025 forms report gross proceeds only. Fewer than half (8 of 20) tie the 2026 basis rule to when you acquired the coin, not when you sold it. Only 2 of 20 mentioned the $10,000 stablecoin and $600 NFT levels. Check those points against the IRS instructions, not a summary.
What Form 1099-DA reports, year by year
The rules turn on one definition. A covered security is a digital asset acquired after 2025 in an account where the broker provided custody, and held there until the broker sells it. Everything else is noncovered. That includes coins bought before 2026 and coins you transferred in.
| Tax year | What brokers report |
|---|---|
| 2025 (forms sent in early 2026) | Gross proceeds. No 2025 sale can be covered, so basis is voluntary and the box may be blank. |
| 2026 (forms sent in early 2027) | Gross proceeds for every sale. Basis is required for covered assets and voluntary for noncovered ones (box 9 checked). |
| 2027 and later | Same rules. More of your sales will be covered as coins bought in 2026 or later get sold. |
| Stablecoins and NFTs (2026 on) | Optional aggregate reporting. A broker using it doesn't have to report designated stablecoin sales at or under $10,000, or specified NFT sales at or under $600, a year. |
Sources: Instructions for Form 1099-DA (2026) and the IRS broker reporting FAQs. One more detail matters for transfers. A broker may use purchase information from another broker to choose which units were sold. The IRS says the broker may not use it to report your basis. So coins you moved between exchanges will often show no basis, even in 2026.
How to match a 1099-DA to Form 8949
The 2026 instructions tell brokers to print a one-letter code that points you to the right Form 8949 checkbox. G means short-term, basis reported to the IRS. H means short-term, basis not reported. J means long-term, basis reported. K means long-term, basis not reported. The instructions also define a code Y, so read that entry if your form shows it. Box 1f is proceeds. Box 1g is basis. Box 9 means noncovered. Box 12a and 12b show units transferred in and the transfer-in date.
Hypothetical worked example. These numbers are made up to show the mechanics. They are not IRS figures.
- You bought 2 units of "Coin A" on an exchange in 2023. You paid $4,200 including fees.
- In 2025 you sold both units on that exchange. Your 1099-DA shows $5,000 in box 1f. Box 1g is blank.
- On Form 8949 you list the sale in the long-term section, using the box for basis not reported. Column (d) is $5,000. Column (e) is $4,200, taken from your own purchase records. Your gain is $800.
- If you had left column (e) blank, the gain would read $5,000. That overstates it by $4,200.
Now a 2026 case. You buy 1 unit of Coin B in March 2026 and sell it in November 2026 on the same exchange. That unit is covered. Expect code G, a basis amount in box 1g, and box 2 checked. If the broker's basis matches your records, you carry both numbers over. If it doesn't, ask the broker for a corrected form, and check with your preparer before you adjust anything. Which units count as sold can also depend on specific identification. The IRS broker FAQs say that if you haven't identified the units sold, the broker applies first in, first out.
Wash sales: the instructions mention box 1i wash sale reporting for tokenized securities. Before you plan losses, read my wash sale note and my tax-loss harvesting guide, and ask your CPA.
Asking AI assistants about your 1099-DA
You might type a question like this into ChatGPT, Claude, Perplexity, Gemini or Google AI Overviews. I did not test those tools for this guide, so I won't claim what any one of them says. Here is what I can source. Google says AI Overviews and AI Mode surface relevant links from the web. It also says they may use different models and techniques, so their answers and links vary. Google has also added a Search Console setting that lets site owners decide whether their site appears in and helps ground responses in its generative AI Search features.
Why this matters for you: when any assistant draws on popular web pages, it can repeat their gaps. In my check, only 2 of the 20 pages mentioned the stablecoin and NFT thresholds. So treat an AI answer as a starting point. Then do three things. Ask the assistant for its source. Open the IRS instructions and check the "Page Last Reviewed or Updated" date at the bottom. Then confirm anything that changes your return with a CPA or enrolled agent.
What to do when your 1099-DA arrives, step by step
1. Collect every form and note what's missing
Download the 1099-DA from each US exchange or broker you used. List every account and wallet you held, including ones that sent no form. The IRS notes that foreign brokers may not send one, and those trades still go on your return.
Time: 30 to 60 minutes.
Done when: you have one list of accounts, and each one is marked "form received" or "no form".
2. Check the identity and totals
Confirm your name, the last digits of your TIN, the asset names and the unit counts. Compare total proceeds to your exchange's own transaction export.
Time: 15 to 30 minutes per form.
Done when: each form's proceeds roughly match the exchange history, or you've written down the gaps.
3. Sort each line by code and box 9
Group lines by code (G, H, J, K, Y) and by whether box 9 is checked. Lines with a reported basis need a check. Lines without one need your records.
Time: 20 minutes.
Done when: every line is tagged "basis reported" or "basis needed".
4. Rebuild basis for every "basis needed" line
The IRS says you must calculate basis before you file. Use purchase confirmations, old exchange exports and on-chain history for coins that passed through a self-custody wallet. My crypto accounting guide covers how to keep those records.
Time: 1 hour to several days, depending on how many wallets you used.
Done when: each sale has an acquisition date and a dollar basis you can back up with a document.
5. Ask the broker to fix errors
If a form is wrong, request a corrected one from the filer named in the top left corner. The IRS says it can't correct your Form 1099-DA. Keep copies of everything you send and receive.
Time: 15 minutes to send the request. Wait time depends on the broker.
Done when: you have a corrected form or a written reply saved with your records.
6. Add what the form leaves out
List staking rewards, self-custody swaps, sales of stablecoins and NFTs, and any trades on platforms that sent no form. None of these disappear because a form skipped them.
Time: 30 to 90 minutes.
Done when: your own list of taxable events matches or exceeds what the forms show.
7. Hand a clean package to your preparer
Give your CPA or enrolled agent the forms, your basis records, your gap list and any broker correspondence. Ask how they will enter each code group on Form 8949.
Time: 30 minutes.
Done when: your preparer confirms they have everything, or tells you exactly what's missing.
Mistakes that cost the most
Treating a blank basis as zero: a $4,200 overstated gain in the example above
If column (e) is empty, your gain equals your proceeds. The instructions let a broker check box 9 for a noncovered asset and leave box 1g blank, so a blank box usually means "not reported", not "nothing paid". In the hypothetical example above, that mistake overstates the gain by $4,200. Fix: supply basis from your own records for every line marked H or K, or with box 9 checked.
Assuming the form lists every sale: $10,000 of stablecoin sales can be missing
Under the optional method, a broker doesn't have to report designated stablecoin sales up to $10,000 a year or specified NFT sales up to $600. If unreported gains lead to an underpayment, the IRS can add a 20% accuracy-related penalty on that portion. Fix: build your list of taxable events from your own history, not just the forms.
Expecting staking rewards on the 1099-DA: 20% penalty risk on missed income
The instructions say brokers do not report rewards and staking payments on this form. If you leave them off your return and underpay, the same 20% penalty can apply. Fix: pull reward history from every platform and wallet, and ask your preparer how to report it.
Your realistic options: do it yourself, use software, hire a preparer, or learn first
| Option | What you get, what it costs, the catch |
|---|---|
| Do it yourself with IRS guidance | The instructions and Form 8949 are free on irs.gov (as listed on November 1, 2026). Catch: rebuilding basis for transfers is on you. |
| Crypto tax software | Imports exchange and wallet data and drafts Form 8949. Prices vary by vendor and plan. Catch: messy imports produce wrong basis. |
| CPA or enrolled agent | A professional prepares and signs your return. Fees vary, so ask for a quote. Catch: you still supply the records. |
| A session with me (Crypto Guidance) | One-on-one plain-English education on your forms and records, paid per session (current options are on the consulting page). Catch: I don't prepare returns or give tax advice. |
Ready for help? Book through consulting, or read how to pick a trustworthy crypto advisor in Kansas City before you hire anyone, including me.
How we compared the options
| Criterion (weight) | What it measures |
|---|---|
| Accuracy for your situation (35%) | How likely the result is a correct Form 8949 for your real facts. |
| Cost (20%) | Out-of-pocket spend, judged on a relative scale (10 means lowest cost). |
| Your time (20%) | Hours you personally spend (10 means fewest hours). |
| Handles self-custody gaps (15%) | How well it deals with transfers, wallets and missing basis. |
| Your understanding (10%) | Whether you can explain your own return afterward. |
Disclosure: Crypto Guidance sells one of these options. My consulting is paid per session. My fixed-scope Secure Your Stack is $997, a written wallet setup audit plus one 60 to 90 minute session. It is a security product, not a tax product. I have no affiliate links to tax software or preparers on this page. The only outside price here is the free IRS forms, as listed on November 1, 2026.
CPA or enrolled agent: Best for anyone with transfers, several accounts or mismatched forms. Score: 7.4/10 (my judgment; ratings out of 10: accuracy 9, cost 3, your time 9, self-custody gaps 9, understanding 5, weighted as above). Trade-off: the highest cost, and you still gather the records.
Crypto tax software: Best for active traders with clean exchange exports. Score: 6.8/10 (my judgment; ratings: accuracy 7, cost 7, your time 8, self-custody gaps 5, understanding 6). Trade-off: bad data in, bad basis out.
Do it yourself: Best for one account, few sales and complete purchase records. Score: 6.0/10 (my judgment; ratings: accuracy 6, cost 10, your time 3, self-custody gaps 4, understanding 7). Trade-off: free, but errors are yours to catch.
A session with me: Best for people who want to understand their records before they pay a preparer. Score: 5.8/10 (my judgment; ratings: accuracy 4, cost 5, your time 6, self-custody gaps 8, understanding 10). Trade-off: education only, so you still need a preparer or software to file.
Which option fits you
| If you are ... | Start with / watch out for |
|---|---|
| Someone with one exchange and a few 2025 sales | Do it yourself. Watch for blank basis on every line. |
| Someone who moved coins to a hardware wallet and back | A CPA or EA. Watch for transferred-in units with no basis. |
| Someone holding stablecoins or NFTs | Your own transaction list. Watch for sales under the $10,000 or $600 levels that never show up on a form. |
| Someone who staked or earned rewards | Reward exports from each platform. Watch for income that's not on any 1099-DA. |
| Someone confused by the form itself | A plain-English session, then a preparer. Watch for anyone who asks for your seed phrase. |
Who this is not for
- Businesses that are brokers themselves. This guide is for people who receive the form. Filers should work from the IRS instructions with a tax attorney or CPA.
- Anyone under audit or holding an IRS notice. Talk to a CPA, enrolled agent or tax attorney who can represent you. An education session is the wrong tool.
- People who want someone to file for them. I don't prepare returns. Hire a CPA or enrolled agent.
Frequently asked questions
What is a 1099-DA?
It is the IRS form a US broker uses to report your digital asset sales and exchanges to you and the IRS. It shows proceeds and, in some cases, basis. Reporting started with transactions on or after January 1, 2025.
Do I need to report a 1099-DA on my tax return?
Yes. The IRS says that whether or not you get a form, you must report all income, gains and losses from digital asset transactions. The form helps you do that, but your return reports the transactions, not the form.
How do I report 1099-DA income?
Each sale goes on Form 8949 with proceeds, basis and gain or loss, and the totals flow to Schedule D. Use the code on your form to pick the right Form 8949 box. Ask your preparer how to handle any line without basis.
What is the difference between Form 1099-B and Form 1099-DA?
Form 1099-B covers traditional securities. Form 1099-DA covers digital assets. When an asset is both, brokers should generally file Form 1099-DA, except for a few cases such as section 1256 contracts, which go on Form 1099-B.
Does my 2026 Form 1099-DA include cost basis?
Only for covered assets: coins acquired after 2025 in that broker's custody and kept there until sold. Coins bought earlier or transferred in are noncovered, and basis for them is voluntary.
I sold crypto but never got a 1099-DA. Now what?
You still report the sales. You may get no form for trades on foreign platforms, for stablecoin or NFT sales under the thresholds, or for self-custody swaps. Build the list from your own records.
My 1099-DA is wrong. Should I call the IRS?
No. Ask the filer for a corrected form. The IRS says it can't correct your Form 1099-DA, and it also says not to wait to file your taxes.
Will my hardware wallet send me a 1099-DA?
Usually not. A provider that only offers hardware or software to control private keys is not a digital asset middleman for this form. Keep your own records for that activity, and see my security page for keeping those wallets safe.
Sources
- IRS: Instructions for Form 1099-DA (2026)
- IRS: Understanding your Form 1099-DA
- IRS: Frequently asked questions about broker reporting
- Federal Register: final broker reporting regulations
- IRS: Accuracy-related penalty
- Google Search Central: AI features and your website
- Google: New opportunities, control and insights for website owners
Related guides
What changed in this guide
- 2026-11: First published. Covers 2025 and 2026 broker rules from the 2026 IRS instructions, an Our data snapshot of 20 search-result pages taken November 1, 2026 (10 read in full, 10 judged from snippets), and a hypothetical Form 8949 match.
Your next step
Start by listing every account and wallet, then line each form up with your records. Use the free estimator for a rough number. If you'd like a second set of eyes on your records, book a session through consulting or call (816) 631-2604. If you're comparing helpers, read my notes on choosing a trustworthy crypto advisor first. I teach and explain. I don't prepare returns or give tax advice, so your CPA or enrolled agent makes the final call.
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