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Tax forms: Frequently asked questions
Disclaimer: Kraken does not provide tax advice. Depending on your country's regulatory framework, you may have to pay taxes on capital gains from trading digital assets or on the value of your digital asset portfolio. You may also have to pay taxes on other income you earn such as from staking* or loaning your crypto. The regulatory framework for taxation of cryptocurrencies differs from country to country. The US has not issued specific guidance addressing the taxation of staking* rewards for US tax residents. We strongly advise you to contact a personal tax advisor for further information about your personal tax circumstances.
Review the U.S. crypto tax guide 2024: Latest IRS updates here.

Tax forms eligibility criteria

Who is eligible to receive Kraken tax forms?
Tax forms are only available for eligible US clients, see more information below.
You may receive a US tax form if:
  1. 1
    You are a Kraken client, vendor or other business partner AND
  2. 2
    You are a US person for tax purposes AND
  3. 3
    You have earned USD $600 or more in rewards from staking* or our referral program, more than USD $10 in interest or certain other income from Kraken.
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Why did I receive a tax form for USD $100 (or other value less than USD $600)?
Our records likely indicate that you hold multiple separate accounts with Kraken with the same name and tax identification number combination. If together these separate accounts would exceed USD $600 when aggregated then you will be issued a tax form, but to each separate account. You should sign in to your other Kraken accounts to check for other tax forms that have been issued to you. You may also receive separate tax forms below the USD $600 threshold if you earned income from different products that exceed the threshold when combined together (such as one form for your staking* rewards and a separate form for your referral program rewards).
Why did I not receive a tax form last year?
IRS guidance on how to report transactions related to cryptocurrency has been historically absent or vague and continues to develop. Despite unclear rules, a consensus has been emerging that clients wish to have this additional information. 
In addition, you may not have earned enough income to exceed the reporting thresholds in prior years depending on the type of income that you earned.
Will I receive a tax form next year?
Kraken will be filing with the IRS and making tax forms available to eligible US clients and other business partners going forward. Tax form filing requirements are subject to change based on new tax laws and regulations.
Are airdrops also reported in tax forms?
Yes, funds received via airdrop are considered reportable income and are included on your Form 1099.
What if I earned staking rewards but did not sell them? Are these still reported on my Form 1099-MISC?
Staking* rewards are reported to you on a US Form 1099-MISC regardless of whether you have sold the rewards or not.
How are staking rewards converted into USD on my Form 1099-MISC?
Kraken converts staking* rewards into USD using Volume Weighted Average Price (VWAP). VWAP is a weighted average based on trading volume and spot price over a 24 hour period. 
The formula for VWAP is: (Price of an asset in USD x % of 24 hr volume traded at that price)
Example:
  • John stakes DOT with Kraken, and receives 100 DOT in staking* rewards on January 7th
  • On January 7th, DOT is trading at the following prices / volumes:
    Price of DOT in USD
    Amount of DOT traded
    $10
    1,000 DOT
    $11
    2,000 DOT
    $12
    7,000 DOT
    Total:
    10,000 DOT
  • VWAP is calculated using the following formula:
    (Price of DOT in USD x % of 24 hr DOT volume traded at that price)
  • John’s staking* rewards would be calculated at USD
    $11.60
    per DOT based on the VWAP formula:
    ($10 x (1,000 DOT / 10,000 DOT)) + ($11 x (2,000 DOT / 10,000 DOT)) + ($12 x 7,000 DOT / 10,000 DOT) 
  • $1.00 + $2.20 + $8.40 = $11.60
  • Thus, John’s 100 DOT staking* rewards would be worth USD
    $1,160
    January 7th (100 DOT & USD $11.60 per DOT)
  • USD $1,160
    amount would be added to his Form 1099-MISC, and the process would repeat each time he receives a staking* reward
Are ETH2 rewards included on my Form 1099-MISC?
ETH rewards become reportable to you on a Form 1099-MISC in the year when they become liquid and tradeable on Kraken. MEV rewards, derived from ETH2 staking*, do count towards the $600 tax form limits. You should plan accordingly with your tax advisor for this potential future taxable event. 
Why do I have a reportable ETHW amount?
In addition to the ETH/ETH2 that went into client accounts as part of the ETH proof-of-staking merge around September 15th, 2022, there was also an airdrop of ETHW (proof-of-work ETH), via a "Transfer" transaction.
I believe I should have received a tax form, but did not. What should I do?
Kraken only provides tax forms to US clients and other business partners that earned:
  • USD $600 or more in staking* rewards or certain other income during the year, or
  • USD $10 or more in interest income. ETH2 rewards are NOT included in this calculation.
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I am a US taxpayer but I live outside of the US and I already paid taxes to the country I live in. Will I receive a tax form?
You should receive a US Form 1099 if you earned:
  • USD $600 or more of staking* rewards or certain other income; or
  • USD $10 or more of certain interest income, 
  • and you are identified as a US taxpayer in our systems. 
US taxpayers generally pay tax on their worldwide income no matter where they reside. You should consult your tax advisor to determine how to calculate your taxes when you have to file in both the US and your country of residence.

Tax forms issued by Kraken

What tax forms does Kraken provide?
Kraken currently only provides a US Form 1099-MISC, a 1099-INT and 1099-NEC which is filed with the US Internal Revenue Service (IRS) and a copy is provided to you (if you are eligible). This may change in future years, as tax reporting laws are constantly changing.
What is a Form 1099-MISC? 
A Form 1099-MISC is used to report staking* rewards, referral program rewards, airdrops and certain other income to the US IRS earned between January 1st and December 31st each year if a client is a US person for tax purposes and has earned USD $600 or more in total. This form is used by you (if you are eligible) to prepare and calculate your taxes. The form includes a sum of staking* reward income, calculated over the past year and converted to USD using the Volume Weighted Average Price on the days the rewards were credited to your account. Your Form 1099-MISC includes your name, last name, address, SSN, and public Account ID (or your EIN and business name in the case of corporate entity accounts).
What is a Form 1099-NEC?
A Form 1099-NEC is used to report certain income you might earn for services provided to Kraken between January 1st and December 31st each year. Form 1099-NEC is reported to the US IRS if a client or other business partner is a US person for tax purposes and has earned USD $600 or more in total. This form is used by you (if you are eligible) to prepare and calculate your taxes.
What is a Form 1099-INT?
A Form 1099-INT is used to report certain interest income you might earn between January 1st and December 31st each year. Only interest paid to you on a fiat currency loan is recorded on a Form 1099-INT while interest paid to you on a crypto loan is recorded on Form 1099-MISC instead. Form 1099-INT is reported to the US IRS if a client or other business partner is a US person for tax purposes and has earned USD $10 or more in total. This form is used by you (if you are eligible) to prepare and calculate your taxes.
What is a Form 1099-K? Does Kraken provide this form?
A Form 1099-K reports payments received through a 3rd party to the IRS. Generally, Form 1099-K is used by companies that facilitate payments to you for your goods or services from another party who is acting as the purchaser. For example, you may receive a Form 1099-K from the credit card company that processes card transactions for your business. Kraken does not issue Form 1099-Ks.
What is a Form 1099-B? Does Kraken provide this form?
A Form 1099-B reports proceeds from sale of stocks and other financial instruments. Form 1099-B may also report other details of the sale such as basis and more. This form is used by US taxpayers to calculate their gains or losses from selling such instruments.
Kraken does not currently issue Forms 1099-B. Emerging US tax regulations may require reporting of cryptocurrency sales or transfers in future years. These new regulations are changing and being evaluated on an on-going basis. Please check the Taxes section of our Support Center going forward for updates.
Taxpayers of the US and other countries are likely required to calculate and pay tax on gains/losses from selling, converting or otherwise trading in crypto during the year. Your tax advisor can assist you further.
Does Kraken report taxes to the US IRS?
Kraken complies with all US IRS regulations. If you have received a Form 1099-MISC, Form 1099-NEC or Form 1099-INT then this information has been reported to the IRS. All of the information shown on your form is shared with the US IRS and the state tax agency of the state of your residence. Though your form may only display the last 4 digits of your tax ID number, the full tax identification number is shared with the US IRS and state tax agency. If any of the information is incorrect, please submit a support ticket prior to April 15 each year so we can correct your tax form before it is transmitted to the US IRS and state tax agency at the end of April. We can still amend your tax form after this date, but the IRS and state tax agencies will then receive both the original and corrected data.
Does Kraken report taxes to the state I live in?
A copy of your Form 1099 may be sent to the state of residence listed on your Kraken account. If this address is not correct, please update your address on file with Kraken by contacting Support.
What do I do with my tax forms from Kraken?
Tax forms should be used as documentation for your tax advisor, CPA or other tax professional that may prepare and calculate your taxes. You should download and keep a copy of your tax forms for your own records as Kraken will only retain these in your account history for a limited time (generally seven years, which is subject to change).
* In February 2023, Kraken ended staking services for U.S. clients, which you can learn more about here. However, there may be tax implications for any staking rewards earned in 2023 prior to this date