Starting tax year 2024, crypto brokers must report your transactions to the IRS using Form 1099-DA. This is the biggest change in crypto taxation since Notice 2014-21. Here's everything you must know.
What Is Form 1099-DA?
Form 1099-DA (Digital Asset Proceeds from Broker Transactions) is the IRS's new reporting requirement for cryptocurrency transactions. Think of it as the crypto equivalent of the 1099-B you receive from your stock broker.
Starting January 1, 2025 (for the 2024 tax year), "brokers" must report digital asset transactions on Form 1099-DA.
📋 What's Reported on 1099-DA?
- Gross proceeds — Total from selling digital assets
- Cost basis — Your purchase price
- Acquisition date — When you bought
- Disposal date — When you sold
- Whether basis was reported — Yes/No indicator
- Gain or loss — Proceeds minus basis
Who Must Send 1099-DA?
The following are considered "brokers" and must issue 1099-DA:
- Centralized Exchanges — Coinbase, Binance.US, Kraken, Gemini, Crypto.com
- Payment Processors — PayPal, Cash App (when they facilitate crypto transactions)
- Custodial Platforms — Any platform holding crypto on your behalf
- Certain DeFi Protocols — Those meeting the "broker" definition (debated)
Who DOESN'T Send 1099-DA?
⚠️ This Is Where It Gets Tricky
These platforms are NOT required to send 1099-DA:
- Self-custody wallets — MetaMask, Phantom, Ledger
- Decentralized exchanges — Uniswap, Raydium, Jupiter
- Non-custodial DeFi — Aave, Compound, MakerDAO
- Bridges — Across, Stargate, Wormhole
- NFT marketplaces — OpenSea, Magic Eden (sometimes)
You STILL must report these transactions. The IRS just won't get automated reports.
Key Form Fields Explained
| Box | Field Name | Description |
|---|---|---|
| 1 | Gross Proceeds | Total amount received |
| 2 | Cost or Other Basis | Your purchase price |
| 3 | Gain or (Loss) | Box 1 minus Box 2 |
| 4 | Federal Income Tax Withheld | Usually $0 for crypto |
| 5 | Transaction Date | Date of disposal |
| 6 | Acquisition Date | Date originally acquired |
| 7 | Digital Asset | Name of crypto (BTC, ETH) |
| 8 | DTIF Code | IRS code for transaction type |
DTIF Codes
The Digital Asset Transaction Family (DTIF) codes indicate the type of transaction:
- 01 — Sale (including DEX)
- 02 — Exchange (crypto-to-crypto)
- 03 — Proceeds from convertible virtual currency
- 04 — Payment for goods/services
- 05 — Proceeds from hard fork
- 06 — Proceeds from airdrop
- 07 — Mining
- 08 — Staking rewards
- 09 — Income from lending
When Do You Get It?
📅 Key Dates
- January 31, 2026 — 1099-DA must be sent to recipients
- February 28, 2026 — Paper filing deadline to IRS
- March 31, 2026 — Electronic filing deadline
The $600 Threshold
Unlike other 1099 forms, there is no minimum threshold for 1099-DA. Even $1 in proceeds should theoretically be reported. However, brokers may have thresholds for practical implementation.
What If Your 1099-DA Is Wrong?
This is a common problem. Exchanges often report $0 cost basis because they don't have visibility into your original purchases. This creates phantom gains.
- Don't just accept it — Use your own records
- Keep your transaction history — From when you bought
- Use tax software — To calculate correct basis
- Report everything — Even if exchange doesn't
How Arthur Labs Generates 1099-DA
We automatically generate a 1099-DA ready report that includes:
- All taxable disposals with proper cost basis
- Correct DTIF codes for each transaction type
- Acquisition dates from blockchain data
- Proceeds in USD using historical prices
- PDF format ready for your records or CPA
💡 Our Differentiation
Unlike competitors, Arthur Labs generates 1099-DA directly from your wallet addresses — including transactions that exchanges won't report. Self-custody, DeFi, bridges — we track it all.
Don't Be Surprised by 1099-DA
Generate your own 1099-DA report before the deadline.
Scan Your Wallet →Disclaimer: This article is for educational purposes only. 1099-DA requirements are evolving — consult a qualified tax professional.