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.
Tax forms are only available for eligible US clients, see more information below.
On-chain staking
An overview of eligibility criteria (including geographic restrictions) for On-chain staking can be found here.
Tax forms eligibility criteria
Who is eligible to receive Kraken tax forms?
You may receive a US tax form if:
- 1You are a Kraken client, vendor or other business partner AND
- 2You are a US person for tax purposes AND
- 3You 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.
All other clients or business partners are not eligible for tax forms for the tax year. This may change in future years as guidance is issued, so please monitor content in the Taxes section of our Support Center going forward for updates.
It is the client's responsibility to determine what, if any, taxes apply to the trades completed via our services, and to report and remit the correct tax to the appropriate tax authority. If you require a record of your balance or trade history, read our article on how to export your data to a CSV-file. We are currently unable to provide account history in PDF format.
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?
Are airdrops also reported in tax forms?
What if I earned staking rewards but did not sell them? Are these still reported on my Form 1099-MISC?
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 below:
- ($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 = USD $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?
Why do I have a reportable ETHW amount?
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.
ETH2 rewards become reportable to you when they become liquid and tradeable to you.
If you believe you should have received a tax form but did not, please reach out to Support for more information.
It is the client's responsibility to determine what, if any, taxes apply to the trades completed via our services, and to report and remit the correct tax to the appropriate tax authority. If you require a record of your balance or trade history, read our article on how to export your data to a CSV-file. We are currently unable to provide account history in PDF format.
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?
- 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?
What is a Form 1099-NEC?
What is a Form 1099-INT?
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?
Does Kraken report taxes to the state I live in?
What do I do with my tax forms from Kraken?
What is Kraken's Tax ID or EIN?
- the country that you reside in; and
- the type of product you are accessing from our platforms
As such, Kraken cannot provide a blanket statement regarding our EIN. The applicable tax ID number of Kraken will be provided in the header of the US Form 1099-MISC (or other tax form as applicable) only in the case that you are eligible to receive such tax form(s).
Accessing and viewing your tax forms
Where can I find my tax forms?
- 1Sign in to your Kraken account (not via our mobile apps) at www.kraken.com/sign-in
- 2Select your name in the upper-right corner of the page.
- 3Select Settings.
- 4Select Documents.
- 5Once the documents page loads you will see a Taxes tab appear at the top, select this option.
When will my tax forms be available?
My address, name or other tax information reported on my forms are not correct. What should I do?
I received an email from Kraken asking me to update my name or taxpayer identification number on my account as it does not match IRS records. Is this email legitimate?
How long will Kraken keep a copy of my tax forms?
In most cases, we will keep a copy of your tax forms for seven years. Please download your tax forms and keep a copy for your records.