US Crypto Tax FAQ 2026: Every Question Answered - 9 Days Before the April 15 Deadline

The IRS deadline is April 15, 2026. Nine days.

And this year is genuinely different. For the first time, the IRS received Form 1099-DA directly from every major US exchange - Coinbase, Kraken, Binance. US, Bitstamp, Phemex, and others. They have your trading data. They're matching it against returns automatically.

A joint Coinbase and Coin Tracker survey found 61% of US crypto users are unaware of the new 2025-26 rules. If you're one of them, here's everything you need to know and how to fix it before the deadline.

→ Connect your wallets. Get your IRS-ready taxreport in minutes. Start free on Kryptos.

The Questions Americans Are Actually Googling Right Now

Do I owe crypto taxes if I didn't sell anything?

It depends on what you did. If you only bought and held, with no sales, no swaps, and no earnings. You owe nothing and can answer "No" on the Form 1040 digital asset question.

But if you received staking rewards, mining income, airdrops, or any DeFi yield in 2025, those are taxable as ordinary income at the market value on the day you received them, even if you never sold a single token.

Is swapping one crypto for another taxable?

Yes, and this is the #1 most misunderstood rule every tax season.

Swapping ETH for USDC, BTC for SOL, or any token for any other token is treated by the IRS as a disposal of the first asset at its current market value. You must calculate and report the gain or loss on every single swap, even if no dollars ever entered your bank account.

What is Form 1099-DA, and why does mine look wrong?

Form1099-DA is the IRS's new digital asset reporting form, mandatory for all US exchanges from 2025 onward. Your exchange sent one to you and one directly to the IRS.

Here's the critical problem: for 2025, exchanges only report gross proceeds, the total you received from selling. They do not report cost basis (what you paid). So if you sold $50,000 of crypto you bought for $45,000, your1099-DA shows $50,000 with a blank cost basis field.

If you transferred crypto between exchanges or wallets before selling, it gets worse, your selling exchange may show $0 cost basis, making your entire sale look like taxable profit.

You must file your own cost basis on Form 8949. If you don't, the IRS may assume you owe tax on 100% of your proceeds.

Kryptos reconciles your 1099-DA against your full transaction history automatically -fixing the cost basis gap before you file.

I have forms from my exchange AND from my tax software. Which do I use?

Do not file both. That's double-counting your income.

You rexchange's 1099-DA is a reference document; it shows gross proceeds. Your tax software's Form 8949 is the actual filing document. It calculates proceeds minus cost basis equals real gain or loss.

Use your software-generated Form 8949 to file. Cross-check that the proceeds figures match your 1099-DA. The cost basis and gain/loss figures are additional; they don't appear on the 1099-DA at all.

Are staking rewards taxable?

Yes. Staking rewards are ordinary income the moment they land in your wallet, taxed at their fair market value that day, regardless of whether you sell them. This was confirmed in IRS Revenue Ruling 2023-14.

When you eventually sell those rewards, you owe a separate capital gains taxon any price movement since receipt.

Ones taking action. Two potential tax events. Most people only report one.

Do I owe tax on De Fiactivity even though there's no 1099?

Yes. In April 2025, Congress repealed the rule requiring DeFi platforms to file1099-DAs. That removed the platform's reporting obligation. It did not remove your tax liability.

Every Uniswap swap, Aave yield payment, liquidity pool reward, and on-chain staking reward is still fully taxable. The IRS also noted that most DeFi activity is publicly visible on-chain; the absence of a 1099 doesn't make the activity invisible.

How much tax do I actually owe?

Two factors determine your rate: how long you held and your income level.

Most earners under ~$94K/year pay 15% on long-term gains. Selling crypto held under a year costs significantly more.

To know more in depth - Check put pur US Crypto Tax Guide ( 2025-26).

What about NFTs? Is the tax rate higher?

It can be. NFTs the IRS classifies as collectibles under Notice 2023-27,may face a 28% long-term capital gains rate, higher than the standard20% maximum for other assets. Always verify how your NFT transactions are categorized in your tax software.

I sold crypto just to pay my tax bill. Is that another taxable event?

Yes, and this surprises people every year. Selling BTC or ETH to raise cash for your April 15 payment is itself a capital gains event. If that crypto appreciated since you bought it, you owe tax on the gain. There is no "used for taxes" exception.

What happens if I just don't report?

The IRS now has your data directly from your exchange via 1099-DA. Mismatches between what was reported and what you file trigger automatic CP2000notices. IRS warning letters to crypto holders increased 758% in a single 60-day window in 2025.

Penalties range from 0.5% per month on unpaid taxes all the way up to 75% of unpaid taxes for civil fraud, and up to a $100,000 fine + 5 years prison for criminal tax evasion. If you missed previous years, file an amended return(Form 1040-X) proactively; the IRS is more lenient toward those who come forward.

Can I file a tax extension and not pay until October?

No, and this is the most expensive misconception. Filing Form 4868 by April 15 extends your paperwork deadline to October 15. It does not extend your payment deadline. Any taxes owed are still due April 15. Miss that and penalties + interest start accumulating immediately.

If you need more time to prepare, file the extension AND make an estimated payment by April 15.

What forms do I actually need to file?

• ‍Form 1040 - Answer the digital asset yes/no question (mandatory for all filers)‍
• Form 8949 - Every individual crypto sale/swap/trade‍
• Schedule D - Summary of all capital gains and losses‍
• Schedule 1 - Staking, airdrop, and mining income‍
• Schedule C - If crypto activities constituted a business

Kryptos generates all of these automatically, exported and makes them Turbo Tax-compatible.

Your 5-StepPlan for the Next 9 Days

Step1- Connect every exchange and wallet to Kryptos via API or CSV

Step2-  Kryptos auto-imports your full 2025history and reconciles your 1099-DA

Step3-  Review your real tax liability -capital gains, income events, DeFi, NFTs

Step4-  Export IRS-ready Form 8949 and Schedule D directly to TurboTax or your CPA

Step5- File by April 15

Start Free on Kryptos. No Credit Card Required

• 100+ Exchange integrations -Coinbase, Binance, Kraken, Gemini, Robinhood & more
• 125+ chains | 50+ wallets | 5,000+DeFi protocols - everything auto-imported
• 1099-DA reconciliation - fixes the cost basis gap automatically
• IRS Form 8949, Schedule D - TurboTax& H&R Block compatible exports
• SOC 1 & SOC 2 Type II Certified
• Official Tax Partner of Binance, Phemex & Bitstamp
• 40,000+ users | 100+ businesses |$300M+ daily AUM tracked

→ Get your free cryptotax report — kryptos.io April 15 deadline. Start now.

About the author

Payam Masood

Head of Content and Social Media - Kryptos