Article: 50659
Overview
New for Tax Year 2025, the IRS requires mandatory reporting of gross proceeds and allows voluntary reporting of cost basis for each sale of digital assets (such as cryptocurrency) reported by brokers.
This information is reported using Form 1099-DA – Digital Asset Proceeds from Broker Transactions and flows into Form 8949 for capital gains reporting.
What’s New for Tax Year 2025?
- Gross proceeds reporting is mandatory for each digital asset sale.
- Cost basis reporting is voluntary when available.
- Each digital asset sale must be reported individually, like stock transactions.
These changes apply to transactions involving digital assets such as cryptocurrency and are intended to improve reporting accuracy.
When Do You Need to Add Form 1099-DA?
You would add Form 1099-DA if:
- You sold, exchanged, or otherwise disposed of digital assets during the tax year, and
- You received a 1099-DA from a broker reporting those transactions.
How to Report
- Go to the Federal Taxes on the left side of the screen.
- Under the Review section, click I’d like to see the forms I’ve filled out or search for a form.
- In the search box, type Form 1099-DA.
- Alternatively, click the Income tab and locate the form there.
- Select Form 1099-DA/Form 8949 – Digital Assets/Sales and Other Dispositions to add and open the form.
- Enter the applicable information.
- Click Save to apply the deduction.
Additional Resources
For official IRS guidance on Form 1099-DA, including reporting requirements and definitions, see the IRS Instructions for Form 1099-DA.