Do I have to report crypto on my taxes?
In short, yes, you must report crypto in your annual tax filing. Per the IRS, US-based crypto holders must report earnings, gains and losses from crypto in your taxes.
In November 2021 the US House of Representatives passed the Infrastructure Bill, which included more stringent regulations on tax reporting for crypto exchanges. Beginning in the tax year 2023, US-based crypto exchanges must collect tax reporting information from their customers so that they can send them (and the IRS) 1099 crypto forms.
What is Form 1099?
1099 Forms are a series of documents the IRS refers to as "information returns,” and include a variety of forms that report different types of payments you might receive throughout the year other than from what a business might pay you as an employee. This could be a freelance job, gig work, rent payments for landlords, or income from crypto activity.
1099 Forms are issued to anyone who earned more than $600 from this secondary income source during the tax year. We’ll cover 1099 Forms as they pertain to crypto in this article.
