Form 1099-DA Explained

The new IRS broker-reporting form for crypto — what it is, who issues it, when it phases in, and how to reconcile it on your return.

Reviewed by Stephan Kulik · Last updated: 2026-06-23 · How we rank

Key takeaways

1099-DA is the IRS form US custodial exchanges use to report your crypto disposals — to you and the IRS at the same time.
Phase-in: gross proceeds for 2025 (forms in early 2026); proceeds + cost basis for 2026 (forms in early 2027), for covered assets only.
It does not cover DeFi or self-custody — the 2024 DeFi-broker rule was repealed in 2025, so DEX swaps stay self-reported.
Treat the form as one input: reconcile it against your own records on Form 8949 — cross-venue cost basis is the usual mismatch.

What Form 1099-DA is

Form 1099-DA — officially "Digital Asset Proceeds From Broker Transactions" — is the IRS information return that brings crypto into the same broker-reporting system stocks have used for years. When you sell or trade on a US custodial exchange, that exchange (the "broker") reports the transaction to you and to the IRS on a 1099-DA. The requirement comes from the Infrastructure Investment and Jobs Act of 2021, which extended the long-standing IRC §6045 broker-reporting rules to digital assets. For the full US picture, see our US crypto taxes guide.

The phase-in: 2025 and 2026

The form arrives in two stages, and the difference matters for what you can rely on:

Form 1099-DA reporting phase-in by tax year
Tax year	Forms delivered	What brokers report
2025	Jan–Feb 2026	Gross proceeds only
2026 onward	Early 2027+	Gross proceeds + cost basis (covered assets)

"Covered" means crypto you both acquired and disposed of on the same broker after the rules took effect. Assets you bought before 2025, or moved in from another platform or wallet, are not covered — the broker has no basis to report for them, so you self-report those on Form 8949 and Schedule D.

Who issues it — and who doesn't

US custodial exchanges (brokers): Coinbase, Kraken, Gemini, Crypto.com (US entity), Paxos, Cash App, and similar. These hold your crypto and issue the 1099-DA.
Non-US platforms: generally do not issue a 1099-DA. You remain responsible for self-reporting that activity.
DeFi and self-custody: not covered. A 2024 IRS rule that would have pulled decentralized front-ends into 1099-DA reporting was overturned by Congress in 2025, so DeFi protocols and your own wallets do not issue the form.

What the form reports

Gross proceeds of every disposal — each sale, and both legs of the crypto-to-crypto trades a centralized exchange executed for you.
Cost basis (from 2026) for covered assets the broker can see.
What it can't see: basis from crypto you bought elsewhere and transferred in. A DEX swap, or a deposit from cold storage, arrives with no basis attached — and that's where 1099-DA totals and your real gain diverge.

What to do when you get one

Treat the 1099-DA as one input, not the final answer:

Export your full transaction history from every exchange and wallet, not just the one that sent the form.
Aggregate and classify it with crypto-tax software — Koinly, CoinTracking, TaxBit, or CoinLedger are common. See the best crypto tax software.
Reconcile the 1099-DA against your own records on Form 8949, then summarize gains and losses on Schedule D.
Report staking or mining income separately (Schedule 1 or Schedule C).
Answer the digital-asset question on Form 1040 honestly.

Because the IRS receives the same form you do, an unexplained gap between the broker's numbers and your return can trigger a notice — most often from cross-venue cost basis the broker never saw. Pick exchanges with clean tax-export tools to make this reconciliation less painful.

US 1099-DA vs EU DAC8

If you've moved between the US and EU, the two regimes are not interchangeable. The US 1099-DA is transaction-level (each disposal) and began with tax year 2025. The EU's DAC8 is aggregate per customer (annual totals per asset type, not line-by-line), applies to EU-based crypto-asset service providers, and starts with tax year 2026 — first reports due 31 January 2027. DAC8 implements the OECD's CARF standard. Neither regime files your return for you; both just give the tax authority a copy of your activity.

This is general information, not tax advice

Digital-asset tax rules, effective dates, and reporting mechanics change continually, and your situation may differ. Verify the current requirements at IRS.gov and with a qualified tax professional before you file. See our terms.

Frequently asked questions

What is Form 1099-DA? +

Form 1099-DA ("Digital Asset Proceeds From Broker Transactions") is the IRS information return that US digital-asset brokers — custodial exchanges like Coinbase, Kraken, Gemini, and Cash App — file to report your crypto disposals. A copy goes to you and to the IRS at the same time, the same way a 1099-B works for stocks. It was mandated by the Infrastructure Investment and Jobs Act of 2021, which extended the IRC §6045 broker-reporting rules to digital assets.

When does Form 1099-DA take effect? +

In two steps. For tax year 2025 (forms delivered in January–February 2026), brokers report gross proceeds — the total you received from each sale. For tax year 2026 (forms delivered in early 2027), they also report cost basis for "covered" assets — crypto you both acquired and disposed of on the same broker after the rules took effect. Anything acquired before 2025, or moved between platforms, will not have basis on the form; you self-report those on Form 8949 and Schedule D.

Who has to issue a 1099-DA? +

US-domiciled digital-asset brokers — custodial exchanges that hold your crypto and process your trades. Coinbase, Kraken, Gemini, Crypto.com (US entity), Paxos, and Cash App are examples. Platforms not domiciled in the US generally do not issue a 1099-DA, so you remain fully responsible for self-reporting activity on those venues.

Does Form 1099-DA apply to DeFi or self-custody wallets? +

No. A separate 2024 IRS rule that would have extended 1099-DA reporting to decentralized "front-ends" and certain non-custodial services was overturned by Congress in 2025, so DeFi protocols and self-custody wallets are not required to issue a 1099-DA. Swaps on a decentralized exchange and on-chain activity from your own wallet are not on any 1099-DA — you still have to track and self-report those yourself.

What does the 1099-DA actually report? +

For 2025: the gross proceeds of each disposal — every sale, and the crypto-to-crypto trades a centralized exchange executed for you (both legs). For 2026 onward: gross proceeds plus the cost basis the broker can see for covered assets. What it cannot report is basis the broker never had visibility into — crypto you bought elsewhere and transferred in, or assets acquired before the rules started. That gap is the single most common source of mismatches.

What do I need to do when I receive a 1099-DA? +

Treat it as one input, not the final answer. Export your full transaction history from every exchange and wallet, aggregate and classify it with crypto-tax software (Koinly, CoinTracking, TaxBit, CoinLedger are common), then reconcile the 1099-DA against your own records on Form 8949 and summarize gains and losses on Schedule D. Report staking or mining income separately (Schedule 1 or Schedule C). Answer the digital-asset question on Form 1040 honestly. Because the IRS receives the same form you do, unexplained discrepancies can trigger a notice.

Is there a minimum amount below which crypto is not reported? +

Unlike some other 1099 forms, broker reporting for digital assets does not have a small-transaction de-minimis exemption — covered disposals are reportable regardless of size. Do not assume that small sales are invisible to the IRS. This is general information, not tax advice; confirm the current rules for your situation with a qualified tax professional.

How does the US 1099-DA compare to the EU's DAC8? +

Both are crypto reporting regimes, but they are built differently. The US 1099-DA is transaction-level (each disposal) and started with tax year 2025. The EU's DAC8 is aggregate per customer (annual totals per asset type, not transaction-by-transaction), applies to EU-based crypto-asset service providers, and starts with tax year 2026 (first reports due 31 January 2027). DAC8 implements the OECD's CARF standard; neither regime replaces your own tax return.