What is a 1099-DA?

A 1099-DA is a tax form that crypto exchanges send to report your digital asset sales to you and the IRS.

Starting in 2026, platforms like Coinbase, Kraken, and Gemini are required to issue this form whenever you sell, trade or dispose of cryptocurrency. This information is then used to help calculate your capital gains/losses and ultimately, how much tax you owe. Think of it as the crypto equivalent of the 1099-B that stock brokers have issued for decades.

The problem is that for the 2025 tax year, your 1099-DA may be missing critical information that could cause you to overpay on your taxes when you file them in 2026.

If you transferred crypto onto an exchange from another wallet or platform before selling, that exchange doesn't know what you originally paid. Your 1099-DA will show the sale amount, but the cost basis may appear as blank or $0. 

To prevent overpaying on your taxes this year, you need to verify your 1099-DA and ensure there is no missing or inaccurate cost basis data. Without an accurate cost basis for all of your transactions, the IRS could treat your entire sale proceeds as taxable profit, even if you barely made a gain or actually had a loss.

This guide explains exactly what's on your 1099-DA, what's likely missing, and how to prevent paying more than you owe. We'll also show you how crypto tax software like Summ can calculate your accurate cost basis and generate IRS-ready forms automatically.

What is a 1099-DA Form?

The 1099-DA, officially "Form 1099-DA: Digital Asset Proceeds From Broker Transactions," is a tax form that cryptocurrency exchanges, brokers, and certain payment processors use to report your digital asset sales to the IRS.

The primary function of the 1099-DA is to report the gross proceeds from your digital asset sales to the IRS.

Gross proceeds are the total amount you received from selling or exchanging a digital asset, before subtracting the cost basis or any fees.

The IRS uses this information to estimate what taxes you owe. 

However, for most people, a 1099-DA on its own does not contain sufficient information to accurately calculate the taxes owed from selling cryptocurrency. It is not intended to replace an accountant or suitable tax software.

For 1099-DA purposes, digital assets include:

• Cryptocurrencies (Bitcoin, Ethereum, etc.)
• Stablecoins (eg, USDC)
• Non-fungible tokens (NFTs)
• Other blockchain-based tokens (eg, ERC-20 Tokens)

When will you receive a 1099-DA form?

The 1099-DA reporting mandate took effect for all transactions starting January 1, 2025. This means the first time you will receive a 1099-DA is in 2026, for your transactions in the 2025 tax year.

You should receive your first 1099-DA forms (for 2025 transactions) around January/February 2026.

Who Issues the 1099-DA?

The following entities are required to issue 1099-DA forms:

• Centralized cryptocurrency exchanges (Coinbase, Kraken, Crypto.com, etc.)
• Cryptocurrency brokers (platforms that facilitate buying/selling crypto)
• Certain payment processors that handle digital asset transactions
• Digital asset trading platforms operating in the US

If you use multiple platforms, you'll receive a separate 1099-DA form from each one.

Who Does NOT Issue a 1099-DA?

The following platforms and services are not required to send you a 1099-DA, but you're still required to report any taxable transactions. That means you will have to track your transactions and calculate the tax you owe from activity on these platforms yourself. This is where purpose-built, crypto tax software like Summ is essential.

• Self-custody wallets (MetaMask, Ledger, Trezor, Trust Wallet, Phantom, etc.)

• Decentralized exchanges (DEXs) (Uniswap, SushiSwap, PancakeSwap, Curve, etc.)

• DeFi lending and borrowing protocols (Aave, Compound, MakerDAO, etc.)

• Liquid staking platforms (Lido, Rocket Pool, etc.)

• NFT marketplaces (OpenSea, Blur, Magic Eden, etc.)

• Cross-chain bridges (Wormhole, Stargate, Across, etc.)

• Yield aggregators and vaults (Yearn, Beefy, Convex, etc.)

Why don't these platforms issue 1099-DAs?

Under current IRS rules, only entities that qualify as "brokers" are required to report. 

Decentralized protocols don't have a central company controlling transactions – they're governed by smart contracts. Because there's no intermediary facilitating your trades, there's no one to issue the form. 

What Do You Do With Your 1099-DA?

Your 1099-DA is documentation you may use when filing your taxes. It reports your crypto sales to both you and the IRS, and you'll need this information to complete Form 8949 and Schedule D on your tax return.

Before using it, verify the data is accurate. Check that the transactions, dates, and amounts match your own records. If you find errors, contact your exchange to request a corrected form.

If you have complex crypto activity, it’s highly likely your 1099-DA alone won't be enough to do your taxes.

The 1099-DA only covers sales on the specific exchange that issued it – nothing else.

If you did any of the following, your 1099-DA won’t be enough, and you may need to use specialized crypto tax software to prepare your taxes: 

- Transferred crypto between wallets or exchanges, before later selling it

- Used decentralized exchanges or DeFi protocols, including liquidity pools, lending and yield farming. 

- Made transactions using a self-custody wallet like MetaMask, Phantom or Ledger

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What Information Does a 1099-DA Include?

Understanding what's on your 1099-DA helps you use it effectively for tax filing. Here's a breakdown of the key information reported:

Transaction Details

The 1099-DA reports each qualifying transaction with the following information:

What About Cost Basis?

Here's an important detail: for the 2025 tax year, brokers are NOT required to report cost basis to the IRS on the 1099-DA. This is a phased implementation:

• 2025 tax year: Only gross proceeds reported
• 2026 tax year and beyond: Cost basis reporting becomes mandatory for certain assets

For sales in 2025: Brokers are not required to report cost basis. They are only required to report gross proceeds for sales impacted in 2025. While brokers may voluntarily report the basis for these transactions, it is not mandatory.

For sales in 2026 and beyond: Brokers are required to report cost basis, but only for covered securities.

Distinction Between Covered and Noncovered Securities (Starting 2026)

Starting January 1, 2026, the requirement to report cost basis depends on whether the digital asset is considered a “covered security.”

Covered Securities (Basis Reporting Required): These are digital assets acquired for cash, stored-value cards, or other digital assets in a custodial account on or after January 1, 2026.

Noncovered Securities (Basis Reporting NOT Required): Brokers are not required to report basis for “noncovered securities,” though they may choose to do so voluntarily. A digital asset is considered "noncovered" if:

    ◦ It was acquired before January 1, 2026.

    ◦ It was transferred into the broker's custody (e.g., from a private wallet or another exchange) rather than acquired directly on the platform.

  ◦ The broker did not provide custodial services for the asset when it was acquired.

Other Exceptions

Even after 2026, brokers using optional reporting methods for certain assets are not required to report acquisition dates or basis amounts. This applies to:

• Qualifying Stablecoins: If the broker reports these on an aggregate basis.

• Specified NFTs: If the broker reports these on an aggregate basis

This means you'll still need to calculate your own gains and losses for 2025 transactions. The 1099-DA tells the IRS what you sold and for how much – but not what you originally paid for it.

Gain/Loss Calculations

Since cost basis isn't reported initially, the 1099-DA won't show your actual capital gain or loss. 

You’ll need to:

1. Determine your cost basis (what you paid for the asset)
2. Subtract the cost basis from the gross proceeds
3. Account for any transaction fees
4. Report the gain or loss on Form 8949

What the 1099-DA Doesn't Include

Your 1099-DA won't show:

• Crypto you received as income (that's reported on 1099-MISC)
• Staking rewards (may be reported on 1099-MISC, depending on the platform)
• Airdrops (not typically included)
• Transactions on decentralized platforms (DeFi is not covered)
• Crypto-to-crypto transfers between your own wallets

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What to Do If You Receive a 1099-DA

When your 1099-DA arrives, follow these steps:

1. Collect all your 1099-DAs from every exchange you used

2. Verify the information for accuracy—check for blank cost basis, incorrect amounts, or missing transactions

3. Establish accurate cost basis across all platforms using your records or crypto tax software

4. Report on Form 8949 with correct cost basis, ensuring proceeds match your 1099-DA

5. Transfer totals to Schedule D and file with your tax return

If you have multiple exchanges, DeFi activity, or see "unknown" cost basis, you'll need to track down those records. Summ can automate this by connecting all your accounts and calculating accurate cost basis across platforms.

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What If I Don't Receive a 1099-DA?

Just because you didn't receive a 1099-DA doesn't mean you don't owe taxes. Here's what you need to know:

You're Still Required to Report

The IRS requires you to report all taxable cryptocurrency transactions, regardless of whether you receive a 1099-DA. Not receiving a form is not a valid excuse for not reporting income.

Common Reasons You Might Not Receive a Form 1099-DA

Your transactions were below the threshold. Brokers may not issue 1099-DAs for very small transaction amounts.

You used DeFi protocols. Decentralized exchanges and DeFi platforms generally don't issue 1099-DAs. Transactions on Uniswap, Aave, Compound, and similar protocols won't generate tax forms.

You used a non-US exchange. International exchanges without US broker status may not be required to report.

You only bought crypto. Purchases aren't taxable events, so no form may be issued.

The form got lost. Sometimes forms are sent to old email addresses or get caught in spam filters.

Self-Reporting Obligations

For any transactions not covered by a 1099-DA, you must:

1. Keep detailed records of every transaction
2. Calculate your gains and losses yourself
3. Report them on relevant IRS forms: 
   
   1. Form 8949: List each individual transaction. For 2025, you will likely check Box I (short-term) or Box L (long-term) for digital assets not reported on a 1099-DA.
   2. Schedule D: Transfer the totals from Form 8949 here to calculate your overall capital gains tax.
   3. Schedule 1 (Form 1040): Use this to report ordinary income from "non-sale" events like staking rewards, airdrops, or hard forks if they aren't already on a 1099-MISC.
   4. Schedule C: If your crypto activity is considered a business (like professional mining or operating a node), report the income and expenses here.

This is especially important for DeFi users. Activities like:

• Swapping tokens on DEXs
• Providing liquidity
• Yield farming
• Bridging assets across chains

All of these are potentially taxable and require self-reporting.

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How Summ Handles 1099-DAs

Managing crypto taxes manually can be time-consuming and may lead to errors. Here's how a dedicated crypto tax software like Summ handles 1099-DA reporting:

The Manual Entry Challenge

Trying to do crypto taxes manually means:

• Exporting transaction histories from every exchange
• Matching buy and sell transactions to calculate cost basis
• Tracking your holdings across multiple platforms
• Converting everything to USD at the time of each transaction
• Organizing hundreds or thousands of transactions for various IRS forms

For active traders, this can take days or even weeks.

Summ's Automated Import Features

Summ eliminates manual work through:

Direct API connections: Link your exchange accounts and Summ automatically imports your transaction history – including any data that will appear on your 1099-DA.

Wallet address tracking: Enter your wallet addresses, and Summ pulls on-chain transactions automatically.

Smart matching: Our software matches your buys and sells to calculate accurate cost basis using your chosen method including Specific Identification and FIFO.

Reconciliation with Transaction History

When you receive your 1099-DA, Summ ensures your tax filing properly reconciles:

• Proceeds match: The proceeds on your Form 8949 match what is reported on your exchange
• Cost basis completed: Summ fills in the missing cost basis that your exchange may have not provided
• Accurate gains: Your actual taxable gain is calculated 
• Audit support: Complete transaction history and documentation to support your filing

Benefits of Using Summ for 1099-DA Reporting

As an official tax partner of both Coinbase and MetaMask, Summ offers:

• TurboTax/TaxAct compatible files for easy import
• 3,500+ integrations covering exchanges, wallets, and blockchains
• Automated cost basis calculation so you don't have to track it manually
• Pre-filled Form 8949 with all information ready to file
• Schedule D with correct totals
• Complete audit trail showing cost basis calculations
• Detailed transaction history as supporting documentation

Simply download your reports and file with your return – Summ does the hard work for you.

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What's the Difference Between a 1099-DA vs 1099-B vs 1099-MISC?

You might receive multiple tax forms related to your crypto and other financial activity. Here's how they differ:

The Key Difference

The fundamental difference is what's being reported:

1099-DA reports sales proceeds (money you received for selling the asset) (money you received for selling the asset) , but may not include the cost basis for every sale. 

Without the cost basis, you cannot accurately calculate the capital gain/loss and how much tax you owe. If the cost basis is incorrectly reported as $0 due to missing data, then you will likely overpay on your tax. 

1099-B reports sales proceeds and cost basis, allowing you to accurately calculate the capital gain/loss and how much tax you owe., allowing you to accurately calculate the capital gain/loss and how much tax you owe.

1099-MISC reports income (taxed as taxed as ordinary income).

When You Might Receive Each Form

1099-DA Example: You sold 0.5 Bitcoin in 2025 on Coinbase for $25,000. Coinbase sends you a 1099-DA reporting the $25,000 in gross proceeds.

1099-B Example: You sold 100 shares of Apple stock through Fidelity. Fidelity sends you a 1099-B reporting the proceeds and cost basis from the stock sale.

1099-MISC Example: You earned $500 worth of Bitcoin through Coinbase's learning rewards program. Coinbase may send you a 1099-MISC reporting this as miscellaneous income.