- Form 1099-DA reports digital asset sales through a broker, such as a US exchange or a hosted wallet. A copy goes to you and a copy to the IRS.
- Sales from 2025: gross proceeds. Sales from 2026: proceeds plus cost basis for covered coins, meaning coins bought on that platform from January 1, 2026.
- Coins bought earlier or transferred in are usually noncovered (box 9), and basis may be blank. You supply it.
- You don't file the 1099-DA. You use it to check the sales you report on Form 8949.
What Is Form 1099-DA?
Form 1099-DA, "Digital Asset Proceeds From Broker Transactions," was created under the broker reporting rules in the 2021 Infrastructure Investment and Jobs Act. Brokers must report sales and exchanges of digital assets for customers, much as stock brokers report on Form 1099-B. The IRS explains the form on its Understanding your Form 1099-DA page.
You'll usually receive one from each US platform where you sold, swapped, or spent crypto during the year, including sales used to pay transaction costs.
Form 1099-DA Box by Box
| Box | Title | What it means for you |
|---|---|---|
| 1a / 1b | Code / Name for digital asset | Which coin was sold, for example BTC / Bitcoin |
| 1c | Number of units | How many units were sold |
| 1d | Date acquired | When you bought them, if the broker knows. Often blank for noncovered coins |
| 1e | Date sold or disposed | The sale date |
| 1f | Proceeds | What you received, generally after transaction costs |
| 1g | Cost or other basis | What you paid. Required for covered coins, often blank otherwise |
| 1h / 1i | Accrued market discount / Wash sale loss disallowed | Mostly relevant to tokenized securities; usually blank for ordinary crypto (see the crypto wash sale rule) |
| 2 | Check if basis reported to IRS | Checked means the IRS has your basis; unchecked means you must supply it |
| 3a | Reported to IRS | Whether gross or net proceeds were reported |
| 4 | Federal income tax withheld | Backup withholding, if any; claim it on your return |
| 5 | Loss not allowed based on amount in 1f | Checked if part of a loss can't be claimed |
| 6 | Gain or loss | Whether the result is short-term or long-term (covered coins) |
| 7 | Only cash proceeds | Checked if you received only cash, not other crypto |
| 8 | Broker relied on customer-provided acquisition information | The broker used dates and basis you supplied |
| 9 | Noncovered security | Checked means the broker isn't required to report basis |
| 11a–11c | Optional reporting method details | Aggregate reporting for qualifying stablecoin and some NFT sales |
| 12a / 12b | Units transferred in / Transfer-in date | Coins you moved into the account, whose basis the broker may not know |
Box titles are from the IRS Instructions for Form 1099-DA. Boxes 10 and 13 are reserved.
Covered vs Noncovered Coins
A covered coin is generally one you acquired on that broker's platform on or after January 1, 2026. For these the broker must report basis, and box 2 is checked. Everything else is noncovered: coins bought before 2026, coins transferred in from another wallet or exchange, and some other cases. For these, box 9 is checked and basis may be missing.
This is the biggest practical change for filers. Your 1099-DA can show $10,000 of proceeds with no basis for coins you actually paid $9,000 for. If you report only what's on the form, you'll overpay tax on $9,000 of phantom gain.
Matching Your 1099-DA on Form 8949
- Sort each 1099-DA transaction into short-term or long-term by holding period.
- Pick the right Form 8949 checkbox. Form 8949 has separate boxes for digital-asset sales reported on Form 1099-DA, depending on whether basis was reported to the IRS. The Form 8949 instructions list them.
- Enter the correct basis from your own records where box 1g is blank or wrong, and use the adjustment code the instructions require.
- Add sales with no 1099-DA, such as DeFi swaps and peer-to-peer sales, in the section for transactions not reported on a 1099.
- Check that totals reconcile with the proceeds on all your 1099-DAs, so the IRS matching program doesn't flag a gap.
If Your 1099-DA Is Wrong
- Ask the broker for a corrected form. The IRS says it can't correct a 1099-DA for you.
- Don't wait to file. Report the correct figures from your records and keep evidence, such as purchase records and transfer histories.
- Watch transfers. A move between your own accounts isn't a sale. If one appears as a sale, keep proof that both accounts are yours.
When Will I Receive It?
Brokers send statements early in the year following the sales, generally by mid-February, the same season as other broker 1099s. The first forms went out in early 2026 for 2025 sales. Check your exchange's tax documents page if yours hasn't arrived.
Form 1099-DA FAQ
What is Form 1099-DA?
Form 1099-DA is the IRS form brokers use to report customers' digital asset sales and exchanges. It covers sales from January 1, 2025, and from 2026 it includes cost basis for coins acquired on the platform from that date.
Why is the cost basis missing on my 1099-DA?
Brokers must report basis only for covered coins, generally those bought on their platform from January 1, 2026. Coins bought earlier or transferred in are noncovered, so basis may be blank. You must supply the correct basis on Form 8949.
Do I have to report crypto if I didn't get a 1099-DA?
Yes. All taxable crypto transactions must be reported whether or not a broker sent a form. DeFi swaps, peer-to-peer sales, and activity on platforms that aren't brokers often don't generate a 1099-DA.
Can the IRS fix a wrong 1099-DA?
No. The IRS says to contact the broker that issued the form for a correction. Meanwhile, file on time using correct figures from your own records.
Sources
Written by Asad Shaikh
Founder of StartCryptoNow. Nine years researching, trading, and teaching crypto; BSCS from Virtual University of Pakistan. Every tax figure is checked against IRS and state revenue publications. Our editorial policy.