![]() ![]() Rewards from referrals and staking would fall into this ‘miscellaneous’ category.įorm 1099-B: This form is used to share information about property/security disposals made through a broker. The form shows the IRS the transaction volume of processed payments.įorm 1099-MISC: This form is used to report ‘miscellaneous’ income to the IRS. In this article, we’ll discuss four different types of 1099 forms.įorm 1099-K: This form is commonly used by credit/debit card networks and other payment settlement networks. Put another way, 1099 forms are designed to report income that you received that wasn’t from your employer. What are 1099 forms?ġ099 forms are designed to provide information to the Internal Revenue Service (IRS) about certain types of income from non-employment-related sources. In 2016, Coinbase was required to hand over data on over 8 million transactions. In the past, Coinbase has shared customer information to the IRS after being served a John Doe Summons. These forms detail your taxable income from cryptocurrency transactions. The tax rate that you pay on your cryptocurrency varies based on multiple factors, such as your holding period and your personal income bracket.įor more information, check out our complete guide to cryptocurrency taxes.Ĭurrently, Coinbase may issue 1099 forms to both you (the account owner) and the IRS if you meet certain qualifying factors. Examples of ordinary income include staking and referral rewards. Ordinary income: If you’ve earned cryptocurrency income, you’ll recognize income based on the fair market value of your coins at the time you received them. Examples of disposals include selling your cryptocurrency and trading it for other cryptocurrencies. In the United States, and most other countries around the world, cryptocurrency is subject to capital gains and ordinary income tax.Ĭapital gains: If you dispose of cryptocurrency, you’ll incur a capital gain or loss depending on how the price of your coins has fluctuated since you originally received them. We’ll also explain the different types of forms that Coinbase sends to customers and the IRS and what they mean for you. In this guide, we’ll break down everything you need to know about Coinbase tax reporting. In recent years, the IRS has sent out over 10,000 warning and action letters to Coinbase customers. Wondering whether Coinbase reports to the IRS? In the future, Coinbase will be required to report all capital gains and losses to the IRS through Form 1099-DA.In the past, the IRS has issued a John Doe Summons on Coinbase - requiring the exchange to hand over years of customer transaction data.The exchange issues 1099 forms to the IRS that details your taxable income.
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