United States Income Taxes and Crypto
Cryptocurrency transactions may be taxable to United States taxpayers.
- The IRS identifies cryptocurrency as property, not currency
- Tax rules that apply to property transactions, like buying or selling stock, also apply to cryptocurrency
Will Coinbase be issuing me a 1099-K from Coinbase?
For transactions that took place on Coinbase.com: NO
- Coinbase is not required to issue a 1099-K to Coinbase.com customers and will not be issuing a 1099-K to our Coinbase.com customers
- Although Coinbase is not issuing a 1099, this does not necessarily mean you do not need to report to the IRS. You may still need to report gains/losses and Coinbase recommends you consult with your tax advisor to determine your reporting obligation
For transactions that took place on Coinbase Pro, Prime, and Coinbase Merchant: MAYBE
Coinbase is required to provide a 1099-K if you engaged in at least 200 cryptocurrency transactions whose total value is equal to or greater than $20,000*.
Please visit 1099-K Tax Forms FAQ for Coinbase Pro, Prime, Merchant for more information.
* this threshold varies by state, please see the above article for a full breakdown
What is a B-Notice and why did I receive one from the IRS?
You may receive an IRS B-Notice for any discrepancies with your tax identification number (TIN) and legal name used by Coinbase to file the Form 1099-K with the IRS. The B-Notice will:
- Let you know what additional information is needed or what needs to be corrected
- Inform you what needs to be provided in addition to updating or correcting your name or TIN
To correct your TIN and/or name, please contact support.
For more information about the IRS B-Notice, please go here.
Using TurboTax or CoinTracker to report on cryptocurrency
Coinbase customers can receive a discount with TurboTax or CoinTracker. Please go here for instructions and a link to the discounts.