How to Report Crypto on Taxes: Crypto Tax Forms 8949 & Schedule D

Navigate how to report your cryptocurrency on taxes confidently with our complete guide on crypto tax forms. From IRS Schedule D to Form 8949 to Schedule 1, we've got you covered with the latest requirements and how to fill out Form 8949 for cryptocurrency with examples, and how to generate your crypto tax forms with Koinly.

Which crypto tax forms do you need?

We'll cover them one by one, plus how to file with Koinly.

Form 8949

IRS Form 8949 is a supplementary form for the 1040 Schedule D. This form is used to report any disposals of capital assets, in this instance, cryptocurrency, and it's been updated for 2026 in light of the 1099-DA forms.

So anytime you’ve ‘disposed’ of crypto by selling it, swapping it, or spending it, you’ll include it on this form. For each disposal, you’ll need the following information:

1. A description of the asset: for example, 0.5 BTC.

2. The date you acquired the asset: for example, 15th May 2025.

3. The date you disposed of the asset: for example, 20th August 2025.

4. The sale price at fair market value: for example, $30,000.

5. The cost basis of the asset at fair market value: for example, $20,000 + $50 in transaction fees.

6. Used if you need to report an adjustment, such as reconciling differences between your own records and what an exchange reports on Form 1099-DA. Common reasons include missing fees, transfers not matched, or brokers using a different cost basis method.

7.  If you enter a code in column (f), you’ll also enter the dollar amount of the adjustment here. This ensures your totals reflect accurate gains/losses and match IRS records.

8. Your capital gain or loss: for example, $9,950.

How to fill out Form 8949 for cryptocurrency

Form 8949 is split into two parts: short-term and long-term.

In the first section, you’ll fill out your short-term disposals. The second part is your long-term disposals. This applies to any asset you’ve held for more than a year before disposing of it. The latter is taxed at lower rates.

For both sections, you’ll need to fill out your total gains at the bottom of the page. You'll need to calculate your:

• Total proceeds

• Total cost basis

• Total gain or loss

You’ll need to do this for both sections for your short-term and long-term gains. You’ll also need to check another couple of boxes on this form, corresponding with your 1099-DA forms (or use tax software that'll do it for you).

For part 1 (short-term), check box A, B, C, G, H, or I as it applies to your circumstances.

If you received a 1099-DA, you must check whether your cost basis was included (and that it's correct). If your cost basis is missing, check box H. If your 1099-DA is correct, check box G. If you did not receive a 1099-DA, check box I.

For part 2 (long-term), check box D, E, F, J, K, or L, as it applies to your circumstances.

If your cost basis is missing, check box K. If your 1099-DA is correct, check box J. If you did not receive a 1099-DA, check box L.

If you're generating your 8949 forms using Koinly, you can upload your 1099-DA forms, and it will automatically check these boxes for you. If you have transactions not reported on a 1099-DA from non-custodial wallets, it will automatically default to box I/L.

You do not have to upload your 1099-DAs to Koinly. The likelihood is that your form is incorrect, as exchanges do not have to report cost basis to the IRS in 2026 (for transactions in 2025). As well as this, exchanges will not be penalized for issuing 1099-DAs late for this year, and as a result, some have failed to issue forms so far, so many users may not receive a 1099-DA ahead of the tax deadline.

If this is the case for you, you can request a filing extension, which will automatically give you until October 31 to file, or you can file without your 1099-DA forms (as many users will be at this point).

Koinly Form 8949 example

Your 8949 forms look a little different this year.

You’ll receive an individual 8949 for each exchange/wallet you use. This will be split into short and long-term disposals as required. Each 8949 will have a consolidated summary of transactions, as well as a statement breaking down individual disposals for each exchange.

For centralised exchanges, where you may or may not have received a 1099-DA, you can now check boxes G/H/I (short-term) or H/K/L (long-term) as applicable as to whether your cost basis was or wasn’t reported, or indeed whether you didn’t receive a 1099-DA at all, given that some exchanges have delayed issuing these.

For non-custodial wallets, your Form 8949 will default to boxes I/L (transactions not reported on a 1099-DA).

You can see an example of your form(s) and statements below.

Form 8949 Part 1 (short-term) example

Form 8949 Part 2 (long-term) example

What if I have too many transactions on Form 8949?

Your new 8949 is already aggregated. There is a non-aggregated statement for each wallet/exchange.

Schedule D for crypto net capital gains

Schedule D (Form 1040) is the form you’ll use to report your net capital gain or loss from all investments. This includes your crypto activity, as well as any gains or losses from businesses, estates, and trusts, so you'll need to

Like Form 8949, Schedule D is split into three sections: for your short-term capital gains and losses, your long-term capital gains and losses, and a summary.

For part 1 (short-term capital gains and losses), fill out either line 1a, 1b, 2, or 3. Refer back to the box you checked in Form 8949. If you've uploaded your 1099-DA into Koinly, these will be split for you. If not, it will default to line 3.

Then you'll need to fill out columns D, E, and H.

d) Total proceeds
e) Total cost basis
h) Total gain or loss

You’ll need to fill out the rest of part 1 as it relates to your unique investments, but line 6 (short-term capital loss carryover) is of particular importance to all investors. This is where you report any capital losses you want to carry over, so if you’ve already offset up to $3,000 in capital losses against your gains or your personal income, report any further losses to carry over here.

Once you’ve done this, head to line 7: net short-term capital gain or loss. Report your net capital gain or loss from all investments, including crypto, here.

For part 2 (long-term capital gains and losses), fill out either line 8a, 8b, 9, or 10. Refer back to the box you checked in Form 8949. If you've uploaded your 1099-DA into Koinly, these will be split for you. If not, it will default to line 10.

You'll need to fill out columns D, E, and H:

d) Total proceeds
e) Total cost basis
h) Total gain or loss

Like above, line 14 is where you’ll report any long-term capital loss carryover.

Once you’ve filled this out, go to line 15 to report your long-term net capital gain or loss from all investments, including crypto, here.

Now head to Part 3 (Summary).

On line 16: combine line 7 and line 15 and enter the result into line 16.

The instructions will vary from here depending on whether you have a net capital gain or a net capital loss:

• If you have a net capital gain: You also need to fill out lines 17 through 20.

• If you have a net capital loss: Skip ahead to line 21.

In either instance, you'll need to report these figures on line 7 of Form 1040.

Schedule 1 for crypto income

Not all of your crypto investments will be viewed as a capital gain or loss. In some instances, your crypto investments will be seen as a kind of income, just like a salary or a bonus (learn more in our guide to crypto taxes).

The form you use to report your crypto income will be either:

• Schedule 1 (Form 1040)

• Schedule C (Form 1040)

You may or may not need all of these forms. It all depends on the type of crypto transactions you’ve made. We’ll look at each form in turn.

IRS Schedule 1 (Form 1040)

Crypto income, such as staking rewards or airdrops, is generally reported as ordinary income. If earned as part of a business (mining operation, validator services, NFT sales at scale), it belongs on Schedule C. Otherwise, report on Schedule 1 as ‘other income.

You’ll find this in part 1, line 8V.

IRS Schedule C (Form 1040)

If you’re self-employed and earn income through crypto, you should use Schedule C (Form 1040) to report your crypto income. Even if you have a regular job, you might be considered self-employed if you were running a crypto mining operation or other activities at a similar scale.

If your crypto income activities do amount to those of a self-employed taxpayer, you’ll need to fill out Schedule C (Form 1040), as well as pay self-employment taxes. These taxes account for Medicare and Social Security taxes usually accounted for in employee paychecks.

You’ll report your gross income and profit in part 1 of Schedule C.

If you’re seen to be running a business, you can also deduct any expenses related to the business (like mining equipment) in line 30, part 2 of Schedule C.

How to report virtual currency on your individual tax return (Form 1040)

Last, but by no means least, is Form 1040. This is your Individual Income Tax Return Form.

You’ll need to add all of the forms you’ve completed to your Form 1040.

Then on your Form 1040, you'll need to fill out the following lines as they relate to your previous forms.

On line 7A report your net capital gain or loss from Schedule D. Fill 7B as applies to your circumstances.

You'll also need to check the box: "At any time during 2025, did you (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?"

Fill out the rest of Form 1040 as it relates to your individual circumstances. Once you’ve completed Form 1040, you’re done! You just need to ensure you’ve submitted these forms to the IRS before April 15.

Attach all these forms to their Individual Income Tax Return Schedule 1 (Form 1040) by April 15.

How to calculate your crypto tax

Before you can report your crypto tax to the IRS, you need to calculate your crypto totals. This means you’ll need to calculate your:

• Capital gains from crypto

• Capital losses from crypto

• Income from crypto

• Any expenses relating to your investments

As you can see, reporting your crypto taxes to the IRS can be time-consuming. For investors with many disposals, filling out Form 8949 alone is a huge amount of work, but Koinly can help.

How to report crypto on your tax return with Koinly

If you’re using a crypto tax calculator like Koinly, then calculating your crypto tax liability is a breeze because Koinly is a Form 8949 (and Schedule D) generator for crypto, which can also help you report any crypto income as well.

All you need to do is import your crypto transaction history from your various wallets, exchanges, or blockchains using API or CSV files. Koinly will then calculate your capital gains, losses, income, and expenses. You can also upload your 1099-DA and our software will reconcile this against your data.

Once all your information is imported, head to the tax report page in your Koinly account, where you’ll find a simple summary of your crypto taxes.

Then upgrade to a paid plan and download Form 8949 and Schedule D, with all your capital gains and losses calculated for you. Koinly can also generate the income totals you need for your Schedule 1 form via our Complete Tax Report.

For investors using a third-party service to file their tax report, Koinly can also generate specific reports for TurboTax and TaxAct reports; just upload our report to your chosen tax app.