Coinbase does not provide tax advice. This material has been prepared for general informational purposes only and should not be considered an individualized recommendation or advice. The information contained herein is not intended to provide, and should not be relied on for, tax advice. Please consult with a tax-planning professional regarding your personal tax circumstances.
United States Income Taxes and Crypto
Cryptocurrency transactions may be taxable to United States taxpayers.
Important Note: Failure to report income, including income from the sale of cryptocurrencies, could result in a number of penalties specified in the tax code. Please consult with a tax advisor regarding your reporting obligation
- The IRS identifies cryptocurrency as property, not currency
- Tax rules that apply to property transactions, like buying or selling stock, also apply to cryptocurrency
- The IRS FAQs on Cryptocurrency Transactions can be found here
For transactions that took place on Coinbase.com: NO
Will Coinbase be issuing me a 1099-K?
For transactions that took place on Coinbase Pro, and Prime: MAYBE
- Coinbase is not required to issue a 1099-K to Coinbase.com customers and will not be issuing a 1099-K to our Coinbase.com customers
- Although Coinbase is not issuing a 1099, this does not necessarily mean you do not need to report to the IRS. You may still need to report gains/losses, and Coinbase recommends you consult with your tax advisor to determine your reporting obligation
Coinbase is required to provide a 1099-K if you engaged in at least 200 cryptocurrency transactions and the total aggregated value of those transactions is equal to or greater than $20,000*.
Please visit 1099-K Tax Forms FAQ for Coinbase Pro, Prime, Merchant
for more information.
* this threshold varies by state, please see the above article for a full breakdown
Providing W8/W9 Information
Customers who qualify for receiving a Form 1099-K will need to provide information needed for W8/W9. By completing this information successfully, eligible customers will receive 10 USDC.
- Please note, only Pro customers who need to provide this information (and qualify for receiving a 1099-K) will be eligible for 10 USDC.
- For regions that do not support USDC, you’ll be paid in $10 value of BTC
- All rewards will be available to qualifying customers January 1, 2020
If the form is not completed by December 31, 2019, we may need to restrict trading on Coinbase Pro until the information is provided and the form is completed.
How will I receive my forms?
Coinbase will send you your tax forms via email or as a downloadable file. Please note that all customers are automatically opted in to this delivery option. If you would like to opt out, please go to the Coinbase Pro Tax Center to opt out. You will instead receive your tax forms by mail.
What is a B-Notice and why did I receive one from the IRS?
You may receive an IRS B-Notice for any discrepancies with your tax identification number (TIN) and legal name used by Coinbase to file the Form 1099-K with the IRS. The B-Notice will:
- Let you know what additional information is needed or what needs to be corrected
- Inform you what needs to be provided in addition to updating or correcting your name or TIN
To correct your TIN and/or name, please contact support
For more information about the IRS B-Notice, please go here
Using TurboTax or CoinTracker to report on cryptocurrency
Coinbase customers can receive a discount with TurboTax or CoinTracker. Please go here for instructions and a link to the discounts.