How to file crypto taxes with Form 8949
Last updated: 2026-10-21
Short answer: report every sale, swap, or spend of crypto you held as a capital asset on Form 8949. Report staking, mining, and similar income on Schedule 1. Answer "Yes" to the digital assets question on Form 1040 if you had any transactions. Source: IRS.gov: Digital assets, checked 2026-10-21.
Steps
- Answer the digital assets question. Answer "Yes" if you received crypto (as payment, a reward, from mining or staking, or from a hard-fork airdrop) or disposed of it (traded it, sold it, spent it, or paid a fee in crypto).
- Keep records. For each transaction, record the type of asset, the date and time, the number of units, the fair market value in USD, and your basis.
- Work out each gain or loss. If you held the asset for one year or less, it's short-term. If you held it more than one year, it's long-term (see Publication 544). Your basis is generally what you paid in USD (see Publication 551).
- Fill out Form 8949, then carry the totals to Schedule D.
- Report income from staking, mining, or forks on Schedule 1. Report wages on Form 1040, and contractor pay on Schedule C.
- Check Form 1099-DA. Starting with 2025 transactions, brokers report gross proceeds on it.
IRS scam alert: the IRS does not require you to register crypto on any "Digital Assets Compliance Portal." If you get a letter with a QR code asking you to do that, it's a scam (IRS.gov). Got a real notice? See IRS crypto letters.
Related: Missing 1099-DA basis · Staking rewards · 1040 digital asset question
FAQ
Do I have to report crypto if I only bought and held?
Per IRS.gov, you can check No on the digital assets question if you only purchased with real currency and did not sell, or only held or moved assets between your own wallets (unless you paid a fee in crypto).
Which form do I use for staking or mining income?
IRS.gov says income from forks, staking, mining, etc. is reported on Form 1040 Schedule 1.
What is Form 1099-DA?
Brokers report digital asset transactions on Form 1099-DA starting with transactions on or after Jan. 1, 2025; basis reporting on certain transactions starts Jan. 1, 2026 (IRS.gov).