Do you need help with Coinbase tax reporting? Then you’ve come to the right place!
If you’ve ventured into the world of digital currencies via Coinbase and need help understanding your tax obligations, you’re not alone. As experienced cryptocurrency accountants, we’ve helped many investors report their Coinbase taxes easily and accurately.
Our guide breaks down your reporting requirements and how to report Coinbase taxes. Let’s clear up the haze and make tax time a breeze!
Do I have to pay taxes on my Coinbase account?
Yes—crypto income, including transactions in your Coinbase account, is subject to U.S. taxes. Regardless of the platform you use, selling, trading, earning, or even spending cryptocurrency can have tax implications.
Does Coinbase report to the IRS?
Yes, Coinbase reports some information to the IRS on Form 1099-MISC (staking and other rewards) and Form 1099-B (futures trading). If you receive a Coinbase tax form, then the IRS will receive it, too. It’s important to report your Coinbase taxes accurately to help avoid tax audits and penalties.
How much do you have to make on Coinbase to pay taxes?
You must report all Coinbase capital gains and ordinary income, as there is no minimum threshold. This is confusing to many users because if you earn less than $600 in ordinary income, Coinbase won’t send you a tax form. However, this doesn’t change your obligation to report all taxable income.
If you haven’t been reporting your crypto activity or have fallen behind, check out our post about why it’s so important to fix your crypto taxes ASAP!
Which Coinbase transactions are taxable?
Taxable crypto transactions on Coinbase include:
- Selling cryptocurrency for fiat (e.g., USD, EUR, GBP)
- Converting one cryptocurrency to another
- Selling NFTs
- Receiving cryptocurrency from a fork or airdrop
- Staking
- Earning rewards on your Coinbase account
- Using cryptocurrency for purchases, including purchases made with a Coinbase debit card
Some of these transactions trigger capital gains tax, while others trigger ordinary income taxes.
The following Coinbase transactions are not taxable:
- Buying and holding cryptocurrency
- Transferring crypto between Coinbase and other exchanges or wallets
Read our simple crypto tax guide to learn more about how crypto is taxed.
Which Coinbase tax forms can I receive?
Coinbase sends some users Form 1099-MISC to report certain types of ordinary income exceeding $600. This includes rewards or fees from:
- Coinbase Earn
- USDC Rewards
- Staking
- Referral Rewards
They send Coinbase Form 1099-B to individuals who traded futures on their platform. It does not include all Coinbase tax transactions for selling or trading cryptocurrencies.
Pro Tip: Beginning in 2026, Coinbase and other cryptocurrency exchanges will issue Form 1099-DA.
What if I didn’t receive a Coinbase tax form?
Not all users will receive Coinbase tax forms, even if they have taxable activity. If you didn’t receive a Coinbase tax form, you must gather and report the information yourself on your tax return. Follow the steps below to file your Coinbase taxes.
How to report your Coinbase taxes
- Download Transaction History: Download your Coinbase transaction history as a CSV file from the Reports section of your account. You’ll also need to download a transaction history from each wallet or exchange you used during the tax year. Don’t forget to include your activity from Coinbase One, Coinbase Advanced (Coinbase Pro), Coinbase Exchange, Coinbase Wallet, etc.
- Calculate Capital Gains and Losses: Use the detailed transaction history from each crypto wallet and exchange to calculate capital gains. You must record each sale or disposition as a line item on Form 8949. Crypto tax software or an experienced crypto CPA can help with this process!
- Complete Schedule D: Use the totals from Form 8949 to complete Schedule D.
- Download Form 1099-MISC: Download the Coinbase 1099 from your account (if you received one).
- Report Ordinary Income on Schedule 1 or Schedule C: If your cryptocurrency activity is considered a business activity, report your rewards income from your Coinbase Form 1099-MISC on Schedule C. If your activity does not rise to the level of a business, report the rewards income on Schedule 1 as Other Income.
- Seek Guidance: Cryptocurrency taxes are complex, especially if Coinbase isn’t your only crypto trading account. Consider using a professional to prepare your Coinbase taxes and provide qualified answers to your crypto tax questions.
Full-service Coinbase tax reporting
The crypto tax attorneys and accountants at Gordon Law are here to make your Coinbase tax reporting seamless and accurate. Save time, money, and stress by working with us this upcoming tax filing season.
If you have any questions about your Coinbase taxes or how to report cryptocurrency, give us a call today!
Sources:
- Coinbase tax information | Coinbase Help
- IRS Notice 2014-21
- IRS Revenue Ruling 2019-24
- IRS Revenue Ruling 2023-14
- IRS Revenue Ruling 2023-27
- IRS Revenue Procedure 2024-28
- IRS, “Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions”
- IRS, “Frequently asked questions on virtual currency transactions”
