Kraken 1099-DA Tax Forms Explained
Understand your Kraken 1099 forms, what they report on, how they impact your crypto taxes, and how to navigate the chaos of 1099 forms this tax season.
Will Kraken send a 1099 form?
Yes, Kraken sends 1099 forms. You will receive a 1099-DA or 1099-MISC form depending on your transactions. It's likely that your 1099-DA form(s) will be incorrect.
What’s included in a Kraken 1099-DA form?
Your Kraken 1099-DA will include:
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
Kraken and other exchanges are not required to report on cost basis for the 2025 tax year (for 2026 filing), so it's likely that your 1099-DA will report on your gross proceeds. This makes your gains/losses look larger than you expected.
What's included in a Kraken 1099-MISC?
Your Kraken 1099-MISC will report your income from crypto, such as staking rewards. If you've earned more than $600 in rewards throughout the financial year, you'll receive this form.
1099-MISC is generally more accurate than your 1099-DA forms.
When will Kraken send 1099-DA?
Generally, 1099-DA forms are issued by late January to early February. The official deadline for issuing 1099-DA forms was February 17, 2026. Kraken has since filed an extension and now estimates these will be ready by mid-March.
Due to complications with the introduction of 1099-DA forms, the IRS has stated that it will not penalize exchanges that issue them after the deadline.
Where to download Kraken 1099 forms
Tax forms are only available on the website, not the app. You can access your 1099 forms in the 'Documents' section on your account. These should appear as 'Tax Statements'.
Why is my Kraken 1099-DA wrong?
In the 2025 tax year (2026 filing year), as 1099-DA forms are a new introduction, exchanges are not required to report on the cost basis of assets.
This means you're likely looking at a 1099-DA that reports the gross proceeds of your sales, rather than your capital gains or losses. If section 1g of your 1099-DA says 'unknown', then this is definitely the case.
If you trust your 1099-DA figures, then you could end up over- or under-paying tax.
This isn't the only error that can occur. Depending on whether you have transferred an asset on or off of Kraken, the following sections of your 1099-DA may also be incorrect or unknown:
1d (date acquired)
1i (wash sale loss disallowed)
6 (short or long-term gain or loss)
How to fix my Kraken 1099-DA
To fix your Kraken 1099-DA, you need to report the correct cost basis of your non-covered assets to the IRS.
Non-covered assets are:
Crypto acquired before January 1, 2026
Any crypto transferred into Kraken from an external wallet or another exchange.
Kraken is not required to report the cost basis of these to the IRS. On your 1099-DA, the sales proceeds will be reported, and the cost basis section will likely be missing or marked as 'non-covered'. This means you are solely responsible for tracking, calculating, and reporting the correct cost basis on your tax return.
However, exchanges are required to report the sales proceeds and cost basis of covered assets acquired after January 1, 2026. This includes crypto acquired and held on Kraken (until sold). Even though the reporting of covered assets is mandatory, you are still required to ensure that the cost basis that is reported is accurate.
How do I edit my 1099-DA on Kraken?
If some transactions are missing cost basis details, you can edit this on Kraken Pro:
Open the ‘History’ page, then navigate to ‘Main’ and ‘Ledger’.
Select the transaction you wish to edit the cost basis of
Edit ‘Entry Price’ by clicking the pencil icon.
Input the cost basis and the acquisition date.
Click ‘Update’ to save your changes.
You cannot directly edit the 1099-DA form, but having an updated cost basis can help you keep track and compare your calculations to your 1099-DA to ensure you’re reporting the correct gains/losses to the IRS.
Can I file without my Kraken 1099-DA?
It's not advisable to file without your 1099-DA, as you'll be unable to check the correct boxes on Form 8949 in relation to your Kraken transactions.
Understandably, users are eager to file in this confusing tax season, and a missing 1099-DA may be frustrating in the interim as the tax deadline draws nearer. Besides speaking to an accountant, one option for users is to file for an extension, giving them until October 15 to file, when hopefully all their 1099-DA forms have been issued.
What do I do if I receive a 1099 form from Kraken?
Do the following if you receive a 1099-DA or 1099-MISC from Kraken:
Review your details: check that your 1099 form includes your correct personal details and accurate information about your transactions.
Use a crypto tax calculator to calculate your taxes.
On Form 8949, select the relevant checkbox to notify the IRS whether your cost basis was or was not reported, to ensure you're reporting accurate gains and losses.
Report income in Schedule 1/C depending on your circumstances.
Keep records. The IRS isn’t likely to audit those actively reporting crypto, but large discrepancies may raise questions.
How do I report my Kraken taxes to the IRS?
Using a tax calculator, such as Koinly, can help you keep track of your cost basis across your Kraken transactions as well as the other wallets and exchanges you use.
Import your transaction history from Kraken and other wallets and exchanges, and Koinly will accurately calculate your crypto taxes and generate reports, including Form 8949 and Schedule D. You can use these reports when filing your return, as well as using the information to compare against your Kraken 1099-DA.
