How do I determine if I will be receiving a Form 1099-K?
Only transactions that took place on Coinbase Pro, Prime, and Merchant are subject to reporting requirements. To receive one:
- You must have had at least 200 orders with matches during 2018, whose total value is equal to or greater than $20,000
- Your gross proceeds from those transactions exceed the state’s threshold (see below for variations by state)
Arkansas (AR) - $2,500
District of Columbia (DC) - $600
Massachusetts (MA) - $600
Mississippi (MS) - $600
Missouri (MO) - $1,200
New Jersey (NJ) - $1,000
Vermont (VT) - $600
All other states - $20k
How will I receive a Form 1099-K?
If Coinbase is required to send you a 1099-K, you will receive an email from Coinbase with a link to access your 1099-K. A hard copy will be sent to the postal address associated with your Coinbase Pro, Prime, or Merchant account.
Additionally, you can select your name for a dropdown with the option to select Statements in your Coinbase account to access transaction history and a copy of the 1099-K to download.
Coinbase sent me a Form 1099-K, what next?
The 1099-K shows all of the transactions that passed through your account in a given calendar year. What you can do next:
1. Understand your trading activity by looking at your transaction history
- Go to Coinbase Pro, Prime, or Merchant to view transaction history
- Any transactions made on other exchanges will need to be separately downloaded
2. Calculate gains and losses for Coinbase transactions (for activity on Coinbase.com only; excludes Coinbase Pro or Prime activity)
- You can use the Coinbase gain/loss calculator tool
- This can only be used for Coinbase.com transactions only. For external transactions (including Coinbase Pro and Prime) and to get an overall gain/loss calculation, you should consult a tax expert
3. Consult a Tax Expert, Prepare Forms
- You can use the 1099-K provided by Coinbase to help report an income tax return
- Please consult a tax expert for help or questions
- For more information on understanding your 1099-K, please visit the IRS’s reference page
Important Note: Coinbase does not provide tax advice. This material has been prepared for general informational purposes only and should not be considered an individualized recommendation or advice. The information contained herein is not intended to provide, and should not be relied on for, tax advice. Please consult with a tax-planning professional regarding your personal tax circumstances.
General Education on the Form 1099-K - please see the IRS “Understanding Your 1099-K” page