There’s a new tax form coming your way for the 2025 tax year. Form 1099-DA will make filing your capital gains taxes on cryptocurrencies and other digital assets easier. But it is a new form, so today we’ll review what it does so you’re not shocked when this cryptocurrency tax form shows up in your mailbox or inbox in early 2026.
Oh, and just because you didn’t receive a 1099-DA for the 2024 tax year doesn’t mean your cryptocurrency transactions aren’t taxable on the return you’re filing now. Here’s what you need to know.
Need Quick Cash to Pay Your Tax Bill?
Did you get a little behind on saving enough money for your tax bill this year? Or, maybe you were expecting a bigger refund and were left a little disappointed. If this tax season isn’t going as planned for you, we know how to help. Check out some of our favorite ways to make easy money.
Do You Have to Pay Taxes on Crypto?
Yes, you must pay taxes on crypto and other digital assets. Digital assets are taxed as property, which means acquiring them isn’t a taxable event. However, when you sell the asset, that’s when taxes kick in. If you sell the asset at a higher value than you bought it for, you’ll pay capital gains tax. If you sell it for less, you’ll incur a loss.
For the most part, cryptocurrencies and other digital assets are treated the same way as stocks as far as the tax code goes. Andrew Gordon, Esq. and CPA of Gordon Law said there is one notable exception.
“The wash sale rule, which prevents investors from claiming a tax loss on a security if the same one is purchased within 30 days, does not currently apply to cryptocurrencies,” Gordon explains. “This means that if you sell a digital asset at a loss and then repurchase it within 30 days, you can still claim that loss for tax purposes.”
If you buy something with cryptocurrency, that counts as a sale. That means spending your crypto is also a taxable event.
What are other digital assets?
Crypto is hardly the only digital asset. Other examples of digital assets that fall under this tax rule include:
- NFTs
- Stablecoins
- Memecoins
- Tokenized securities
- Tokens received on gaming platforms – sometimes referred to as “crypto coins” or “crypto tokens”
“For tax purposes, digital assets are any digital representation of value recorded on a cryptographically-secured, distributed ledger [AKA] blockchain – or [a] similar technology,” said Alison Flores, manager of The Tax Institute at H&R Block. “You should determine if the asset is stored on a digital ledger. If it is, then you have a digital asset.”
What is the New Cryptocurrency Tax Form?
If you sell cryptocurrency in 2025, you should expect to receive a 1099-DA in early 2026. This cryptocurrency tax form that will help you enter your digital asset and crypto information more easily on your income tax return – specifically on Schedule D.
For the 2025 tax year, you won’t necessarily see the cost basis (original value) on the form. Flores said this will be added on the 1099-DAs you receive in early 2027 for the 2026 tax year.
Even once the cost basis information is mandated, Gordon notes that if you buy on one platform and subsequently sell on another, the broker won’t necessarily have the data to offer you this cost basis, so it could still be left blank. There’s still going to be some math involved on your end. That means you’re going to want to use tax software that’s capable of managing information about digital assets. Or, even better, get help from a tax professional who specializes in crypto and other digital assets.
Do I have to pay taxes on crypto and other digital assets if I don’t get a 1099-DA?
You sure do have to pay taxes on crypto – even if you don’t get a 1099-DA in the mail. The same goes for sales of any other digital assets. That means just because you haven’t gotten a 1099-DA this year (which no one will,) you do still have to pay taxes on those sales.
This has always been true. So if you haven’t paid your capital gains taxes on past years’ returns, you’re going to want to file amendments with the help of a tax pro.
“The IRS will be receiving more information about crypto transactions from exchanges and third parties than ever before, and audits are increasing,” warns Gordon. “Voluntarily amending your returns can help [you] avoid potential penalties and interest.”
How do I file taxes without a 1099-DA?
With or without a 1099-DA, you’re going to want to keep immaculate personal records to ensure you file your capital gains taxes correctly for your digital assets. Flores suggests making either a hand-written log or a spreadsheet to use every time you make any type of crypto transaction.
“Many platforms provide a detailed log that may be imported as part of tax preparation,” she said. “When you enter into a digital asset transaction it will include a transaction ID which can be used when looking up transactions in a blockchain explorer. The ledger that your assets are stored on is searchable, so if you forget to keep a log of your transactions you can always use the transaction ID to find [the] information.”
She goes on to stress that even after 1099-DAs start being issued, the fact that the cost basis may or may not be included means that you’ll want to continue keeping these detailed personal records.
What if I Hold Cryptocurrencies or Digital Assets in my Retirement Account?
Assets held within a tax-advantaged retirement account – like a 401(k) or IRA – are treated differently than assets you hold in a regular-old brokerage account. Any crypto sales (and any subsequent reinvestments) will not be taxed right away. You’ll only be taxed on the gains when you withdraw them from the retirement account entirely. Hopefully you won’t do that until you’re age 59 ½ so you don’t incur any early withdrawal penalties.
Not all retirement accounts are taxed in the same way. For example, when you contribute to a 401(k), you deduct your contributions from your taxable income today. Then, you pay taxes on the gains when you make a withdrawal.
Other accounts, like a Roth IRA, don’t allow you to deduct contributions from today’s taxable income, but when you make withdrawals, the gains aren’t taxed. For that reason, Gordon likes Roth IRAs for cryptocurrencies in many cases.
“If your crypto investments perform well, you won’t pay any additional taxes on the gains when you take distributions – provided you meet the age and holding period requirements,” he said.
It’s always important to note that everyone’s personal tax situation is different. Before deciding which retirement account is best for your investment strategy, talk with a tax professional.
It’s also important to note that crypto is a risky investment. It’s even riskier than stocks in most cases, especially if you’re used to doing index fund investing. You might not want digital assets in your retirement account at all.
“Many advisors suggest using caution when invest[ing] retirement plan assets in crypto due to volatility and regulatory uncertainty,” Flores said.
Didn’t Eric Trump Say American Cryptocurrencies Shouldn’t be Taxable Anymore?
Yes, but even if President Trump agrees, tax law has to originate with the legislative branch – or Congress.
In order for that to happen, there has to be a bill that passes through both houses of Congress. There is often some back and forth with different versions of the bill bouncing between the two houses before the final version is officially approved. If the bill makes it through that process, then the president can either sign or veto it. If the president signs it, that’s when it becomes law.
It is highly likely we’ll see a new tax bill this year. Much of the TCJA expires at the end of 2025. It’s even possible – though hardly certain – that any new tax bill would alter the way cryptocurrencies are taxed.
But for the time being, the current rules apply. Anything you do with digital assets under current law will be taxed as property, with capital gains tax applying accordingly. Whether that asset originates from an American company or not.
Pittsburgh-based writer Brynne Conroy is the founder of Femme Frugality and the author of “The Feminist Financial Handbook.” She is a regular contributor to The SS.