Binance US 1099-DA Tax Forms Explained
Navigate the chaos caused by 1099 forms this season with his guide. Understand your Binance US 1099 forms, what they report on, how they impact your crypto taxes, what to do, and how to file this tax season.
Will Binance US send a 1099 form?
Yes, Binance US issues 1099 forms to you and the IRS. Depending on your transactions, you will receive a 1099-MISC or 1099-DA form. It's very likely that your 1099-DA form(s) will be incorrect.
What’s included in a Binance US 1099-DA form?
Your Binance US 1099-DA will include information on:
Your name, Taxpayer Identification Number (TIN), and your address.
Account name and identifiers
The name/code for the digital asset, the type of asset, and the number of assets
The acquisition date and the sale/disposal date.
The cost basis of the asset and the proceeds from the transaction
Sections for aggregated transactions for stablecoins and NFTs
You may notice that your sales proceeds from disposals appear larger; this is because exchanges are not required to report cost basis on 1099-DAs, so for the 2025 financial year, Binance 1099-DAs will be reporting your gross proceeds rather than your capital gains and losses.
What's included in a Binance US 1099-MISC?
Your 1099-MISC from Binance US reports on the income you've earned from crypto, like staking rewards. If you've earned more than $600 throughout the financial year, you'll receive this form.
Your Binance US 1099-MISC is generally more accurate than your Binance US 1099-DA form(s) will be.
When will Binance US send 1099-DA?
Generally, 1099-DA forms are issued by late January to early February, with the official deadline for issuing 1099-DA forms in 2026 being February 17.
Due to complications surrounding the introduction of 1099-DA forms, the IRS will not penalize exchanges that issue them after the deadline.
Where to download Binance US 1099 forms
You can download your 1099 forms directly from your Binance US account. These are located in the 'Tax Reports' section on your profile, which you can access through 'Export Reports'.
Why is my Binance US 1099-DA wrong?
During the introduction of 1099-DA forms for the 2025 financial year (2026 filing year), exchanges are not required to report on cost basis. As such, your Binance 1099-DA is likely reporting the gross proceeds of your sales, rather than your capital gains and losses, which inflates your earnings.
Therefore, if you're trusting what your 1099-DA says, you're going to end up under- or over-paying tax.
Transfers of assets in and out of your Binance US account can also cause the following sections on your 1099-DA to be incorrect or marked as unknown:
1d (date acquired)
1i (wash sale loss disallowed)
6 (short or long-term gain or loss)
How to fix my Binance US 1099-DA
To fix your Binance US 1099-DA form, you need to report the correct cost basis of your non-covered assets to the IRS. This is because Binance US is only required to report the sales proceeds, not the cost basis, of these assets. They include:
Crypto acquired before January 1, 2026
Any crypto transferred into Binance US from an external wallet or another exchange.
On your 1099-DA, you may see that the cost basis section is missing or marked as 'non-covered'. That means you are then responsible for tracking, calculating, and reporting the correct cost basis when filing Form 8949.
Covered assets are crypto acquired and held on Binance US until sold. Starting in the 2026 financial year (2027 filing year), exchanges are required to report the sales proceeds and cost basis of covered assets to you and the IRS. Reporting of covered assets is mandatory, but you are still required to ensure that the cost basis being reported is accurate.
How do I edit my 1099-DA on Binance US?
You can edit assets missing cost basis on Binance US by:
Going to the 'Asset' page
Clicking 'Average Cost' and selecting 'Revise.'
Although you cannot directly edit the 1099-DA form and changes to cost basis will not be reported on your form once it has been issued to the IRS, keeping track of your cost basis will still help when reporting your correct gains and losses on your tax return.
What do I do if I receive a 1099 form from Binance US?
If you receive a 1099-DA or 1099-MISC from Binance US, you should:
Review your details: Check that your 1099 form includes the correct personal details and accurate information about your transactions.
Use a crypto tax calculator to calculate your taxes.
Select the relevant checkbox on Form 8949 to notify the IRS whether your cost basis was or was not reported. This ensures you're reporting the correct capital gains and losses to the IRS.
Report income in Schedule 1/C depending on your circumstances.
Keep records. The IRS isn’t likely to audit people actively reporting their crypto, but large discrepancies may raise questions.
How do I report my Binance US taxes to the IRS?
Keeping track of your cost basis and accurately calculating your taxes can be difficult without the help of a crypto tax calculator.
By using one, like Koinly, you can easily import your Binance US transaction history, as well as other exchanges and wallets you use, and it will do the work for you. Once everything is calculated, you can generate reports needed to file with the IRS, including Form 8949 and Schedule D, and compare these against your Binance US 1099-DA when filing your return.
