Does Crypto Go on a 1099-B? Understanding Crypto Tax Forms Before 1099-DA
Quick Answer
In the past, some crypto exchanges issued Form 1099-B (the traditional brokerage form) to report crypto sales. Starting in 2025, the new Form 1099-DA replaces 1099-B for crypto. However, if you have old 1099-Bs from prior years or use certain platforms that haven't transitioned, you may still see them. Keep old 1099-Bs for your records, but don't expect them going forward for crypto transactions.
What Is Form 1099-B?
Form 1099-B is Proceeds from Broker and Barter Exchange Transactions. It's the standard form that stock brokers, options brokers, and other investment brokers use to report transactions to the IRS.
A 1099-B shows the proceeds from sales of securities (stocks, bonds, options, ETFs, etc.), the date sold, the cost basis (starting in recent years), and other details. It's sent to the taxpayer and the IRS.
For stock investors, the 1099-B is familiar. If you sold 100 shares of Apple for $15,000, your broker sends you a 1099-B showing that transaction.
Before 2025, some crypto exchanges issued 1099-Bs to report crypto transactions, treating crypto similarly to securities.
Did Crypto Ever Generate a 1099-B? (Short Answer: Yes, Before 2025)
Yes. In the early years of crypto tax reporting, some major exchanges used 1099-B.
Coinbase, for example, issued 1099-Bs to some users for crypto transactions prior to 2025. The form was used because it was the closest equivalent to a brokerage transaction; you were buying and selling an asset.
However, the 1099-B was never a perfect fit for crypto. The form was designed for securities trading, which has different rules and structures than crypto.
Additionally, not all crypto exchanges issued 1099-Bs. Some didn't issue any form at all, and others waited for the IRS to clarify crypto-specific reporting.
The inconsistency was a problem. Users didn't know what to expect, and it created confusion when filing taxes.
Why Crypto Is Moving from 1099-B to 1099-DA
The IRS finalized Form 1099-DA in 2024 to address the limitations of 1099-B for crypto.
Here's why the IRS created a new form:
1. Crypto is different from securities. Crypto is not a security under the IRS's current interpretation. Using a securities reporting form (1099-B) was awkward and technically incorrect.
2. Cost basis tracking was incomplete. Brokers struggle to track cost basis for crypto transferred in from external wallets. The new 1099-DA was designed with this issue in mind, and includes a field to indicate whether cost basis is reported by the broker or reconstructed by the taxpayer.
3. Consistency. The 1099-DA creates a uniform standard for all crypto exchanges. No more guessing whether you'll get a 1099-B or something else.
4. Clarity for the IRS. The IRS wanted a form specifically designed for crypto to make compliance easier to audit and enforce.
Starting with the 2025 tax year, crypto exchanges are required to use 1099-DA, not 1099-B. This change simplifies reporting and makes expectations clear.
Do I Still Need to Keep My Old 1099-Bs?
Absolutely. You should keep any 1099-Bs you received in prior years.
Here's why:
1. Tax record retention. The IRS recommends keeping tax records for at least seven years. Your old 1099-Bs are documentation of income reported to the IRS in those years.
2. IRS matching. If the IRS audits a prior-year return, they'll have a copy of the 1099-B you received. You need your copy to verify consistency.
3. Amended returns. If you need to file an amended return for a prior tax year, you'll need to reference the original 1099-B to make corrections.
4. Crypto cost basis tracking. If a 1099-B from a prior year affects your cost basis calculation (because you're now selling that crypto), keep it to reference the original purchase details.
Store your old 1099-Bs with your tax records indefinitely. Digital copies are fine, as long as they're searchable and backed up.
What Changes with 1099-DA
The shift from 1099-B to 1099-DA brings several practical changes:
Form design: 1099-DA is formatted specifically for digital assets. It has boxes for asset type (Bitcoin, Ethereum, etc.), acquisition date, disposition date, and proceeds. Starting in 2026, it includes cost basis.
Cost basis reporting: This is the biggest change. With 1099-B, cost basis was inconsistent. With 1099-DA, brokers are required (starting 2026) to report cost basis, and there's a field to indicate whether they did or if you're reconstructing it.
Asset specificity: 1099-DA specifies what digital asset was sold (Bitcoin, Ethereum, USD Coin, etc.), whereas 1099-B was more generic.
Multi-year information: 1099-DA is designed to capture full transaction history, not just annual summaries, making it easier for the IRS to track individual transactions.
Broader applicability: More exchanges are covered under 1099-DA requirements than were ever required to issue 1099-Bs.
For taxpayers, the shift means simpler, more standardized reporting. You'll know what to expect, and your tax software can process it more consistently.
How to Handle Both Forms If You Have Them
If you have both old 1099-Bs and new 1099-DAs (for example, you traded on the same exchange in both 2024 and 2025), here's how to handle them:
1. Use each form for its respective year. The 1099-B applies to 2024 tax year returns. The 1099-DA applies to 2025 tax year returns.
2. Verify no double-reporting. Make sure the same transaction isn't reported on both forms. Exchanges should have migrated cleanly from 1099-B to 1099-DA, but verify.
3. Cross-reference cost basis. If you sold crypto in 2025 that you bought in 2024, the 2024 1099-B may document your cost basis. Use it to verify the cost basis on your 2025 1099-DA.
4. Use crypto tax software. FastCryptoTax can import both forms and handle the transition seamlessly. You don't have to manually track which form applies where.
5. Keep both. File both in your records, even though only the form for each year goes on that year's return.