A Form 1099-K is used to report transactions across a third-party network (in this case, the third-party network is Coinbase). It shows all of the transactions that passed through your Pro or Prime account in the previous calendar year. The Form 1099-K reflects your gross proceeds for all sales transactions on the platform—it does not reflect net gain, profit, or anything other than gross proceeds.
For more information about the Form 1099-K, please see the IRS “Understanding Your 1099-K” page.
What are gross proceeds?
Gross proceeds means the total amount you transacted (cryptocurrency trades) on Coinbase. This does not include adjustments or show overall gains and losses from these transactions.
Does the Form 1099-K show capital gains?
No, the Form 1099-K only shows gross proceeds and not gains and losses. The total number you see is not your capital gains but the total amount that was transacted on Coinbase.
This includes the total of any cryptocurrency amount that passed through or was transacted on Coinbase.
How do I determine if I will be receiving a Form 1099-K?
Only transactions that took place on Coinbase Pro and Prime are subject to reporting requirements. To receive a Form 1099-K you must also have gross proceeds from transactions that exceed the following state thresholds (see below for variations by state):
Arkansas (AR) - $2,500
District of Columbia (DC) - $600
Massachusetts (MA) - $600
Mississippi (MS) - $600
New Jersey (NJ) - $1,000
Vermont (VT) - $600
All other states
You must have had at least 200 orders with matches during 2019, whose total value is equal to or greater than $20,000
How will I receive a Form 1099-K?
If Coinbase is required to send you a Form 1099-K, you will receive an email from Coinbase with a link to access your Form 1099-K.
Additionally, you can go to Statements in your Coinbase Pro account to access transaction history and a copy of the Form 1099-K to download.
I don’t qualify for a Form 1099-K but I received one
If you don’t believe that you qualify but have received one, you might have met your state’s threshold. Please review your state thresholds.
The information on my Form 1099-K is incorrect
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.