How to File Your Kraken Taxes

One of the largest crypto exchanges worldwide, Kraken lets crypto investors of all experience levels buy, sell, trade, and stake their crypto assets. Whatever your investments, Koinly can help you do your Kraken taxes.

How to do your Kraken taxes with Koinly

Get your crypto taxes done fast with Koinly, just connect to import your Kraken transaction history. Here's how.

CSV

Follow these steps to sync your Kraken data automatically to Koinly:

  1. Log in to your Kraken account.
  2. Go to your profile in the top right corner and select Security.
  3. Select API from the drop-down menu.
  4. On the API key management page, select Create API key. 
  5. On the add API key page, enter a name into the key description box, for example, “Koinly”. 
  6. Check the boxes: Query, Query closed orders & trades, Query ledger entries, and Export data. 
  7. Leave all other boxes unchecked (Deposit, Withdraw, Earn, Query Open Orders & Trades, Create & modify orders, Cancel & close orders). Leave all other options toggled off (WebSocket interface, IP address restriction, Key expiration, Query start date, Query end date, Custom nonce window).
  8. Select Generate Key in the bottom right corner. 
  9. Copy your API Key and API Secret and paste them into the fields in Koinly.

On Koinly:

  1. Create a free account on Koinly
  2. Complete onboarding until you get to the Wallets page and find Kraken in the list
  3. Select API > Paste the API keys you copied above in the appropriate box
  4. Hit Import and wait for Koinly to sync your data. This can take a few minutes
  5. Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
  6. Go to the Tax Reports page to view your tax liability!
Having trouble connecting Kraken with Koinly?

Please note, that if you're using Kraken Futures, you'll need to import your futures transactions to Koinly separately. Here's how.

CSV

Follow these steps to sync your Kraken Futures data automatically to Koinly:

  1. Log in to your Kraken Futures account
  2. Go to the API settings page
  3. Create a new api key for Koinly
  4. Make sure to give it permission to read your deposits/withdrawals/trades. Koinly does NOT need access to your funds so you should disable any fund management permissions.
  5. Copy your API key and API secret

On Koinly:

  1. Create a free account on Koinly
  2. Complete onboarding until you get to the Wallets page and find Kraken Futures in the list
  3. Select API > Paste the API keys you copied above in the appropriate box
  4. Hit Import and wait for Koinly to sync your data. This can take a few minutes
  5. Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
  6. Go to the Tax Reports page to view your tax liability!
Having trouble connecting Kraken Futures with Koinly?

Does Kraken report to the IRS?

Yes, Kraken reports to the IRS. If you're a US resident and you earn more than $600 in income via Kraken (from staking rewards and so on), Kraken will issue you a 1099-MISC Form. Whenever you receive a 1099-MISC form from Kraken, the IRS receives an identical copy. 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 has requested information on all customer accounts that traded at least $20,000 in cryptocurrency in any single year 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 users affected, 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 file my Kraken taxes?

You'll need to calculate and report any income or capital gains you made from Kraken with your tax office. For most people, this happens as part of your annual tax return.

There are a couple of ways you can do this. You can either do it yourself, by identifying your taxable transactions, calculating your net capital gain or loss, and the fair market value of any crypto income.

Or, save hours and use a crypto tax calculator like Koinly to easily calculate your taxable income for you, and generate your Kraken tax report, ready to file with your tax office.

Koinly works by importing your Kraken transaction data to analyze what's taxable, and what's not. Let's look at an example - here are some transactions in a Kraken account.

Kraken and Koinly transactionsYou can import your Kraken transaction history via Koinly's API integration or by uploading CSV files of your Kraken transaction history into Koinly. Once you've done this, you'll be able to see your Kraken transactions in Koinly - like this.

Kraken and Koinly transactionsKoinly lets you manage all your crypto transactions - from Kraken and any other exchanges you use - from one single platform, making crypto tax simple.

Your frequently asked questions

Does Kraken have tax documents?
How do I get Kraken tax documents?
Do you get a 1099 from Kraken?
Does Kraken provide financial or end of year statements?
Do I have to pay taxes on Kraken?
What does Kraken report to the IRS?
Does Kraken report to other tax authorities?
Does Kraken have Proof of Reserves?

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