Are you lost figuring out how to report your Kraken crypto activity on your tax return? We’ve got you covered. Our Kraken tax guide will answer your questions.
What Kraken Activity Do I Need to Report for Taxes?
If you used Kraken for crypto activity in 2024, you may need to report it on your 2024 tax return. Some examples of Kraken taxable activity include:
- Selling or trading crypto
- Earning rewards: Opt-in rewards, staking rewards, referral rewards, etc.
- Airdrops
- Interest
What Kraken Activity is Not Taxable?
- Buying and holding crypto on Kraken
- Transferring crypto in between your Kraken account and any other exchanges or wallets
Learn more about how crypto taxes work and how to report them here.
What Kraken Tax Forms Will I Receive?
If you had taxable activity, you may receive a Kraken tax form. Depending on the amount and what you use Kraken for, you may receive all, some, or none of these tax forms. If you think you should receive a tax form but didn’t, you can contact Kraken for support.
- Kraken Form 1099-MISC: For rewards or airdrops.
- Kraken Form 1099-INT: For interest paid on the platform. Kraken only reports interest paid on fiat loans on the 1099-INT. The interest paid on crypto-loans is on the Kraken Form 1099-MISC.
- Kraken Form 1099-NEC: For taxpayers who performed services for Kraken.
Why Doesn’t Kraken Send Form 1099-B?
Form 1099-B reports capital gains and loss transactions, including proceeds and cost basis information. It’s difficult for Kraken and other crypto platforms to report accurate cryptocurrency cost-basis information for taxpayers using multiple exchanges.
New legislation requires Kraken to report crypto trades on Form 1099-DA beginning in 2026. This form, designed specifically for digital assets, is similar to Form 1099-B, but it may not be as accurate.
Why Didn’t I Receive a Kraken Tax Form?
Tax forms have filing thresholds, and Kraken is not required to file the forms for taxable activity that falls under these thresholds. These are the filing thresholds for the Kraken tax forms:
- Kraken Form 1099-MISC: $600 or more in taxable income.
- Kraken Form 1099-INT: $10 or more in taxable interest income.
- Kraken Form 1099-NEC: $600 or more in taxable income.
If you didn’t receive a Kraken tax form, your activity for the year may not have met the threshold. Don’t get ahead of yourself, though. You still need to report the taxable activity on your tax return.
How To Report Your Kraken Taxes
Even if you didn’t receive a tax form from Kraken, the IRS still requires you to report your taxable activity on your tax return. This includes cryptocurrency trades on Kraken or any other platform.
Generally, you can report your Kraken income in the following ways on your tax return, but you should consult with a tax professional for guidance specific to your situation:
- Capital Gain or Loss: Net gain or loss from selling or trading crypto goes on Schedule D and Form 8949
- Interest Income: On Schedule B
- Rewards: Either on Schedule 1 as other income or, for self-employed taxpayers whose business activity is cryptocurrency, on Schedule C.
How Do I Calculate My Kraken Crypto Gain or Loss?
Tax software can help you calculate your capital gain or loss from your Kraken crypto activity. Some tax software allows you to integrate your Kraken account directly, but others may require importing a file.
Below are steps for downloading your Kraken transaction history from the Kraken interface (steps will vary for Kraken Pro and Kraken Classic):
- On your account homepage, click on Transactions.
- This will bring you to the History tab. In the middle, under Transactions, filter for the information you need.
- Once you’ve set your filters, click on the Export button on the right.
- In the Export transactions box, select your file type (typically CSV) by clicking Generate.
If you have crypto activity but have fallen behind in keeping it up to date or have not reported it on your tax return in the past, you should start reporting now. Check out this guide on why you need to prioritize IRS crypto reporting.
How Gordon Law Can Help
If you need help reporting your crypto reports or your overall tax filings, Gordon Law can help. We’ve prepared over 1,500 crypto tax reports for our clients and defended over a dozen IRS crypto audits. By working with us, you’ll have a stress-free crypto tax filing season. Call the experienced crypto tax team at Gordon Law today.
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