Does Kraken Report to the IRS?
If you've traded on Kraken in the US, the IRS probably already knows about your investments. Learn how and what Kraken reports to the IRS in our guide.
Kraken issues Form 1099-MISC for users with over $600 in income. The IRS receives an identical copy.
Kraken was ordered to provide information to the IRS for customer accounts that traded more than $20,000 between 2016 to 2020.
From 2026, Kraken will report more information to the IRS via Form 1099-DA.
Does Kraken report to the IRS?
Yes. Kraken reports to the IRS.
US customers earning more than $600 in income via Kraken, from investments like staking rewards, receive a 1099-MISC form, and an identical copy goes to the IRS.
As well as this, in June 2023, Kraken was ordered by a judge to provide customer information to the IRS to allow the tax agency to investigate under-reported tax liabilities. The IRS requested information on all customer accounts that traded at least $20,000 in cryptocurrency in any single year between 2016 to 2020.
From 2026, under current regulations, Kraken will be required to report even more information to the IRS via the new dedicated crypto IRS form, Form 1099-DA.
What does Kraken report to the IRS?
Kraken issues 1099-MISC forms to both users and the IRS. Any user with more than $600 in income throughout the financial year will receive it.
The exchange was also ordered by a judge to provide information to the IRS on all customer accounts that traded more than $20,000 between 2016 to 2020.
Under new regulations, Kraken is required to report more information from the IRS via Form 1099-DA. This form will include information about your disposals on the exchange (any sales or trades).
What counts as income on Kraken?
Any new tokens earned are generally classed as additional income from crypto. For Kraken, this includes staking rewards.
Read our guide to crypto taxes for more information on how crypto is taxed by the IRS.
When will I receive my 1099 form from Kraken?
1099-MISC forms from Kraken are generally issued by February of the following financial year at the latest, to give you plenty of time ahead of the tax deadline.
These 1099-MISC forms were not issued by Kraken in 2024, as the staking program was suspended in 2023. Users received these again in 2025, for the 2024 financial year, when the staking program was reinstated.
Read next: Crypto 1099 Forms
What do I need to do if I receive a 1099-MISC from Kraken?
If you receive a 1099-MISC from Kraken, you should:
Review your details. Make sure your form lists your correct personal information and accurately reflects your investments.
Calculate your taxes. You may owe Federal and State Income Tax (if applicable) on any crypto income, based on the fair market value in USD at the time you received the assets.
Report your income. In most cases, crypto income should be reported on Schedule 1 (Form 1040)
Keep records. It's important to maintain thorough documentation of your crypto activity in case the IRS requests verification or initiates an audit.
What does the IRS do with the information Kraken provides?
In the past, the IRS has used information from Kraken to send warning notices to crypto investors. Any mismatches between your tax return and the information on your 1099 form, or other information received by the IRS, could raise the likelihood of a crypto-related tax audit.
Read next: Received IRS Letter 6173 or 6174? Here's What To Do
What information does Kraken send to the IRS?
Information included in Form 1099-MISC includes the USD value earned from staking rewards throughout the financial year, as well as user information, including name, address, and taxpayer identification number (TIN).
Kraken was also been ordered to provide customer data to the IRS for any users with more than $20,000 in trading volume between 2016 to 2020.
What's the Kraken IRS email?
Have you received an email from Kraken detailing how the exchange is sharing information with the IRS? Don't panic - you won't be the only one.
Kraken has been court-ordered to provide personal information and transaction histories for clients who exceeded $20,000 in transaction volume in any financial year between 2016 and 2020. For affected users, Kraken is required to share the following information:
Name
Date of birth
Address
Contact information
Transaction history for 2016 to 2020
Kraken shared this information with the IRS in early November 2023.
What does it mean for Kraken users? Well, if you’ve been compliant with the IRS and met your crypto tax liability, nothing. However, users who have failed to report crypto transactions that resulted in capital gains or income may be subject to a tax audit in the future. Find out how to prepare for a crypto tax audit and what to expect.
How do I report my Kraken taxes to the IRS?
You need to report any gains or losses from Kraken to the IRS using Form 8949 and Schedule D. Additionally, any income earned through Kraken should be reported on Schedule 1 (or Schedule C, depending on your individual filing status).
It’s a lot of information to collect, which is why Kraken has partnered with crypto tax calculator Koinly to make it simple.
Report your Kraken taxes with Koinly
Koinly simplifies reporting your Kraken transactions to the IRS by automatically importing your transaction data from the platform via SSO or by uploading a CSV file.
Once your data is imported, Koinly calculates your gains, losses, income, and more, then generates ready-to-file tax reports. Learn more about how to generate your Kraken tax forms with Koinly.
FAQs
Do I have to pay tax on my Kraken transactions?
Yes. Any gains or income from your Kraken transactions are taxable. Learn more in our crypto taxes guide.
Do you get a 1099 from Kraken?
Yes, users with more than $600 in income will receive a 1099-MISC from Kraken. In 2026, Kraken is expected to begin issuing Form 1099-DA, which will report all crypto disposals for a given user.
Does Kraken send a 1099-B?
No. Kraken does not currently issue Form 1099-B to users or the IRS.
Does Kraken send a 1099-K?
No. Kraken does not currently issue Form 1099-K to users or the IRS.
Do I need an FBAR for Kraken?
Probably not. The FBAR (Foreign Bank and Financial Accounts) filing requirement applies to foreign accounts exceeding $10,000. Since Kraken is a U.S.-based exchange, the FBAR generally doesn't apply. However, if you hold funds on other foreign exchanges and the value exceeds $10,000, an FBAR filing may be required.
Do you have to report crypto under $600?
Yes. Even if you don’t receive a 1099-MISC from Kraken, your crypto income may still be taxable. Many types of crypto income are taxable upon receipt, even if the total is under $600.