Short answer: Form 1099-DA is the crypto version of a 1099-B. Your broker sends it to you and the IRS to report what you sold. For 2026 the IRS instructions require brokers to report gross proceeds for all digital assets and cost basis only for covered securities, which are digital assets acquired after 2025 in that broker's custodial account. Everything else may show proceeds with no basis, and it's on you to fill in the rest on Form 8949.
What's on the form
- Box 1a and 1b: the token's identifier (from the Digital Token Identifier Foundation, or 999999999 if it isn't registered) and its name.
- Box 1c: number of units sold.
- Box 1d and 1e: date acquired and date sold.
- Box 1f: proceeds.
- Box 1g: cost or other basis, required only for covered securities.
- Box 1i: wash sale loss disallowed, which applies to tokenized securities, not ordinary crypto under current law (see our wash sale guide).
- Box 2: checked if basis was reported to the IRS.
- Box 4: federal income tax withheld, which is backup withholding if you never gave the broker your taxpayer ID.
The account number on the form is the broker's account number for you, not your wallet address.
The Form 8949 code tells you where it goes
Each 1099-DA carries a one-letter code for the matching Form 8949 checkbox:
- G: short-term, basis reported to the IRS.
- H: short-term, basis not reported.
- J: long-term, basis reported to the IRS.
- K: long-term, basis not reported.
- Y: the broker doesn't know your holding period, so you decide between H and K from your own records.
Step-by-step instructions are in our Form 8949 guide. If box 1g is blank, see how to fix missing cost basis.
What's not on it
- Staking and rewards income. The instructions say brokers don't report rewards and staking payments on Form 1099-DA. They're still taxable; see how staking rewards are taxed.
- Small stablecoin sales. Under the optional method, a broker doesn't have to report designated sales of qualifying stablecoins if your total proceeds from them at that broker are $10,000 or less for the year.
- Small crypto payments. A payment processor doesn't have to report your payment sales if they total $600 or less for the year. Over $600, all of them get reported.
- Self-custody activity. Trades in your own wallet or on-chain don't come from a custodial broker, so they won't appear on a broker's form, but they're still reportable. DeFi users should see software that handles DeFi.
What to do when it arrives
- Collect every 1099-DA, one per broker, and compare the proceeds to your own records.
- Fill in basis for anything blank or wrong, using your purchase history. Import your exchange and wallet history into a tracker: CoinLedger (code CRYPTOTAX10 for 10% off) or Koinly will match lots and produce Form 8949 (compare them).
- Answer the digital asset question on Form 1040 and check your 2026 rates.
- If the numbers don't reconcile, you have missing years, or you get an IRS letter that cites 1099-DA data, get a specialist. Browse the crypto CPA directory, find one in your state, or see IRS crypto letter help.
Source: IRS Instructions for Form 1099-DA (2026), retrieved 2026-10-21. Software links are affiliate links; CoinLedger code CRYPTOTAX10 gives 10% off. Disclosure. General information, not tax advice.
FAQ
What is Form 1099-DA?
It's the IRS information return that digital asset brokers, such as custodial exchanges, file for each customer's sales of digital assets. Per the IRS instructions for 2026, brokers must report gross proceeds for all digital assets and cost basis for digital assets that are covered securities.
Why does my 1099-DA show proceeds but no cost basis?
Basis is mandatory only for covered securities, meaning digital assets acquired after 2025 in an account where that broker provided custodial services. Crypto bought earlier or transferred in from another wallet is generally noncovered, so basis may be blank. You still report your real basis on Form 8949.
Are staking rewards reported on Form 1099-DA?
No. The IRS instructions say brokers do not report rewards and staking payments on Form 1099-DA. You still owe tax on them as income when received.
What do codes G, H, J, K and Y mean?
They tell you which Form 8949 box to use. G is short-term with basis reported to the IRS, H is short-term without basis reported, J is long-term with basis reported, K is long-term without basis reported, and Y means the broker can't tell whether the holding period is short or long.
Will I get a 1099-DA for small stablecoin sales?
Maybe not. A broker using the optional stablecoin method doesn't have to report designated sales of qualifying stablecoins if your total proceeds from them at that broker are $10,000 or less for the year.