We apologize for any delays in the delivery of Form 1099-DA. We are issuing forms as quickly as our processes allow and have experienced technical challenges. Many clients have received Forms 1099-DA and 1099-MISC, and forms are continuing to be generated and will populate in the Tax Center as they are available. If you have not received a Form 1099-DA, you should receive it within the coming days as systems are generating the forms. Please note that you will not receive a Form 1099-DA or Form 1099-MISC if your account activity does not meet the IRS reporting thresholds for those forms (and you will receive an e-mail if you are in this group within the next couple days). Regardless of whether you are slated to receive a Form 1099, your transaction data will show up in the Tax Center and we again encourage you to leverage this data as it is the same underlying data being used to generate the Forms 1099-DA and 1099-MISC.
This guide explains how to read your combined Form 1099-DA and Form 1099-MISC using the structure shown in your statement. Consistent with IRS guidance, Form 1099-DA reports gross proceeds only, which are not the same as your gain or loss. As such, we urge you to look to your transaction history and the Tax Center to help guide yor gain loss reporting and avoid over-reporting by relying only on the gross proceeds on your Form 1099. You may download your full transaction information, use a third-party tax calculator such as CoinTracker or Koinly, or consult a tax professional to assist with your tax preparation.
This guide explains how to read your combined Form 1099-DA and Form 1099-MISC, using the structure and sections shown in the statement you received.
Form 1099-DA
You will receive a Form 1099-DA if you sold crypto on any of our exchange applications or sites (Kraken, Kraken Pro, or Krak), or sent crypto via Krak in 2025. Crypto includes all digital assets, including stablecoins (for example, USDG or USDC).
“Selling crypto” includes:
- Selling crypto for fiat currency (e.g., BTC for USD), or
- Exchanging crypto for another crypto (e.g., BTC for ETH, BTC for USDG, USDG for USDC, etc.).
What does "sent" mean here?
“Sent” refers to transferring a digital asset to another person or business using Krak (for example, reimbursing or paying someone with your crypto). Transfers between wallets or accounts that you own or control are not considered a sale or disposition.
Is there a minimum threshold for Form 1099-DA?
There is no minimum threshold for reporting sales or sends. Even a $1 transaction is reportable.
What if I only purchased and HODL'd crypto and did not sell or send crypto via Krak in 2025?
If you only purchased or held (HODL’d) crypto in 2025 and did not sell crypto on any of our exchange applications or sites (Kraken, Kraken Pro, or Krak) or send it via Krak, Form 1099-DA reporting will not apply.
What if I transferred crypto between accounts and wallets is this considered a sale or disposition of Crypto for the Form 1099-DA?
Transfers between your own wallets/accounts are generally not sales or dispositions.
Form 1099-MISC
You will receive a Form 1099-MISC if you earned $600 or more in rewards during 2025, including:
You will receive a Form 1099-DA only if:
If the above apply, and you have reportable digital asset sales or dispositions, we are required to issue you a Form 1099-DA and report certain information to the IRS.
If you are a U.S. tax resident but your account is held with one of our non-U.S. exchange entities, your information may instead be reported to tax authorities under the OECD’s Crypto-Asset Reporting Framework (CARF).
In this case:
This approach helps prevent duplicative reporting of the same transactions to the IRS.
The Crypto-Asset Reporting Framework (CARF) is an international tax transparency framework developed by the Organisation for Economic Co-operation and Development (OECD).
Under CARF, participating jurisdictions exchange information about crypto-asset transactions between tax authorities.
If your account is subject to CARF reporting, your transaction information may be shared with the IRS through international tax information exchange agreements rather than through a Form 1099-DA.
To avoid duplicate reporting of the same transactions to the IRS, accounts reported under CARF will generally not also receive a Form 1099-DA.
To receive a 2025 Form 1099-DA from Kraken, you must have been a U.S. tax resident client of our U.S. Digital Asset Broker with an address in the United States or a U.S. territory as of December 31, 2025. If your account address was outside the United States or its territories on December 31, 2025, a Form 1099-DA was not issued. In those cases, reporting may instead, in the future, fall under the OECD Crypto-Asset Reporting Framework (CARF). Tax authorities have indicated that clients should only be reported once, either under Form 1099-DA or CARF, not both. However, regulatory coordination between these frameworks is still developing.
For the 2025 tax year, Kraken applied the following approach:
On Kraken.com, select your icon in the upper-right corner and go to Account. Under Personal Information, you will see the country your account is associated with.
If your total rewards (including staking rewards, airdrops, referral rewards, and deposit bonuses) are less than $600 for the tax year, Kraken did not report this income to the IRS on Form 1099-MISC.
We have still provided this information in your reports for your records. You may rely on your Kraken account records or your preferred crypto tax software when preparing your tax return.
For the 2025 tax year, we used the FIFO (First-In, First-Out) method solely to calculate and display cost basis and estimated gains or losses to you in this statement.
What this means:
We used FIFO because:
Your choices:
No. Gross proceeds are not the same as gains or losses.
Gross proceeds represent the total amount received from selling or disposing of digital assets, before considering what you originally paid for those assets.
Your gain or loss is generally calculated by comparing:
Gain or Loss = Gross Proceeds − Cost Basis
Example
We have partnered with CoinTracker to provide you with a Tax Center with more tools to make tax preparation easier for you, for more information see our U.S. Tax Center FAQs,
Your statement is organized into several sections. Not every section applies to every client.
What you’ll see
What to do
What this section represents
How it appears
This section reflects when you sold, traded, or otherwise disposed of digital assets.
You may see totals grouped by
Important clarification
This section lists individual crypto transactions and may label them as:
All transactions shown here roll up into the summary totals.
If applicable, your statement may include an aggregate summary for qualifying stablecoins or certain NFTs. These amounts are already included in your digital asset reporting.
Form 1099-DA Reporting to Kraken Clients and the IRS:
| Box # | Field Name | Reported on the client Form | Reported to the IRS |
|---|---|---|---|
| FILER'S Name | FILER’S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no | Yes | Yes |
| FILER'S TIN | FILER’S TIN | Yes | Yes |
RECIPIENT'S TIN | Recipient's TIN | Yes - last 4 digits | Yes |
RECIPIENT name | Recipient name | Yes | Yes |
Street address (including apt. no.) | Recipient street address | Yes | Yes |
| City | Recipient's city or town, state or province, country and ZIP or foreign postal code | Yes | Yes |
Account number | Account number | Yes | Yes |
| CUSIP number | CUSIP number | N/A | N/A |
| 1a | Code for digital asset (DTI code) | Yes | Yes |
| 1b | Name of digital asset | Yes | Yes |
| 1c | Number of units | Yes | Yes |
| 1d | Date acquired | Yes - using FIFO, Clients may rely on their own records | No |
| 1e | Date sold or disposed (except for qualifying stablecoin transactions) | Yes | Yes |
| 1f | Proceeds | Yes | Yes |
| 1g | Cost or other basis | Yes - using FIFO, Clients may rely on their own records | No |
| 1h | Accrued market discount | N/A - For Kraken users | |
| 1i | Wash sales loss disallowed | Yes - using FIFO, Clients may rely on their own records | No |
| 2 | Check if basis reported to the IRS | Not checked | Not checked |
| 3a | Reported to IRS: Gross proceeds or (Net Proceeds - adjusted for Options Premium) | Gross Proceeds | Gross Proceeds |
| 3b | Check if proceeds from: QOF | N/A | N/A |
| 4 | Federal income tax withheld | N/A | N/A |
| 5 | Check if loss is not allowed based on amount in 1f | N/A | N/A |
| 6 | Gain or loss: short-term, long-term, ordinary | Yes - using FIFO, Clients may rely on their own records | No |
| 7 | Check if 1f is only cash | Yes | Yes |
| 8 | Check if broker relied on customer-provided information | N/A | N/A |
| 9 | Check if digital asset is a noncovered security | Checked for all transactions | Checked for all transactions |
| 11a | Check if gross proceeds reported in 1f is an aggregate amount for: (Qualifying stablecoins, Specified NFTs) | Checked for aggregate reporting for qualifying stablecoins | Checked for aggregate reporting for qualifying stablecoins |
| 11b | If 11a checked, number of transactions | Yes for qualifying stablecoins transactions | Yes for qualifying stablecoins transactions |
| 11c | For aggregate reporting of specified NFTs, aggregate gross proceeds reported in 1f that are attributable to first sales by creator or minter | N/A | N/A |
| 12a | Number of units transferred in | Yes | Yes |
| 12b | If transferred in, provide transfer-in date | Yes | Yes |
| 14 | State name | Yes | Yes |
| 15 | State identification number | N/A | N/A |
| 16 | State tax withheld | N/A | N/A |
All transactions on your Form 1099 are reported using UTC (Coordinated Universal Time).
Your 1099-DA uses Coordinated Universal Time (UTC), which runs 5 to 10 hours ahead of U.S. time zones. A trade made late on December 31 may appear as January 1 on your form, or not appear at all, showing up on next year's 1099-DA instead. If this affects you, you can report the transaction in the correct tax year using your own trade records.
No. This is a timing difference, not an error. Your 1099-DA is informational. Use your trade records to report the transaction in the year it occurred, and save your confirmations in case they're needed later.
Your income from staking rewards, airdrops, and other rewards is shown in Box 3 of Form 1099-MISC.
The IRS requires fixed formatting for electronic filing. Fields have strict character and byte limits, so longer values may be:
This is expected and does not affect accuracy.
Longer names may be shortened.
Long addresses are often abbreviated (e.g., “Apartment” → “Apt”).
Long asset names may be replaced with tickers or truncated. Custom asset names may be truncated.
Both. IRS systems apply byte-based limits (often ~40 bytes per field).
Non-ASCII characters (e.g., accents) may:
No action is needed if the information is only shortened.
Request a correction if:
No. These limits only affect formatting, and not:
If your name, last four digits of your TIN (SSN/EIN), address, state of residency, or gross proceeds are incorrect, contact Kraken Support as soon as possible to request a review and (if appropriate) a corrected statement.
If the cost-basis, gain/loss or other holding period information does not match your records, you may use your records because this information was not reported to the IRS, and this information is only on your copy of the Form 1099-DA.
If you are exempt from Form 1099 reporting either because you are not a U.S. Tax Resident or because you are exempt from reporting, please contact Kraken Support.
For the 2025 tax year, we do not provide a Document ID on Form 1099 packages. This is expected and does not impact the validity of your form or your ability to file your taxes.
If your tax software requests a Document ID, you can instead import your data using tax file exports (e.g., CSV) or connect your account directly to third-party tax aggregators (such as CoinTracker or Koinly).
No. For 2025, Kraken was not required to report your cost basis and gains/losses to the IRS, and you may calculate gains/losses using IRS-permitted identification rules.
If you’re using a form of Specific Identification, IRS rules require you to adequately identify the units by the time of the sale (and maintain records). If you did not, FIFO generally applies by default.
Consider using Kraken’s Tax Center method settings going forward and keep supporting records.
Crypto‑to‑crypto trades can be reportable dispositions (and may be taxable), because exchanging one digital asset for another is treated as a disposition of property.
If you transferred assets into Kraken from another exchange or wallet, Kraken may not have enough acquisition data to determine your basis and holding period. You may need to supply acquisition details to your tax software or preparer using your own records.
For 2025, we reported gross proceeds without basis or gains/losses to the IRS; only your copy of the Form 1099-DA contains the cost-basis and gains/losses utilizing the FIFO cost-basis method. In certain cases, for example for transfers, the cost basis may be missing, but that does not mean your basis is $0.
For example - missing cost basis for transfers:
Assume you bought 1.0 BTC for $50,000 (your basis), which you transferred from an external wallet or exchange to Kraken. In 2025. within your Kraken account, you exchanged the BTC for $110,000 worth of ETH.
The Form 1099‑DA for 2025 may show $110,000 of proceeds on the sale of BTC, with an unknown cost basis; however, the gain is generally the difference between amount realized and adjusted basis (which is $110,000 - $50,000 = $60,000 gain before considering allocable transaction costs).
Please use your records, obtain support from a third-party crypto tax calculator (CoinTracker, Koinly, etc.), or other professional tax support in order to complete any missing cost basis information.
Fees paid in digital assets and very small disposals can create reportable lines. Some very small amounts may round to $0.00 on statement outputs or exports, depending on formatting.
The following transaction types are not required to be reported at this time:
We track cost basis for digital assets only for transactions that occur within the same Kraken account.
This means:
When you transfer digital assets to:
We no longer have visibility into those assets. As a result:
You are responsible for maintaining records of transactions that occur outside of your Kraken account.
If digital assets are transferred out of your Kraken account and later transferred back:
Because we cannot verify what occurred outside of Kraken, you are responsible for maintaining accurate cost basis records for those assets.
Digital assets can be freely transferred between wallets, exchanges, and protocols. Once assets leave our platform, we no longer have complete information about:
For this reason, cost basis tracking is limited to activity that occurs within the same Kraken account.
If you transfer assets between Kraken and other wallets or exchanges, we recommend:
Even if cost basis is not tracked by Kraken for assets transferred out and back in, you remain responsible for accurately reporting your taxable gains and losses.
The 1099‑DA reporting described here applies to activity on the Kraken Exchange (Kraken.com / Kraken Pro / Krak and related apps). Activity in separate DeFi applications including the Kraken Wallet may not be included.
This combined statement is designed around your Kraken Exchange Account. Reporting on non-custodial wallets, for example the Kraken Wallet, is not required at this time.
You should still collect on-chain records and include them in your overall tax reporting if they include taxable events.
This statement reflects information that may have been reported to the IRS and additional information provided for your convenience. You are responsible for determining the correct reporting method and amounts on your tax return. Consider utilizing the additional resources in our Tax Center or consulting a qualified tax professional if you have questions.
These terms relate to what information a broker is required to report to the IRS.
For 2025, digital assets are generally treated as noncovered, meaning Kraken reported gross proceeds but not cost basis or gains/losses to the IRS.
Your original purchase price for a digital asset, including certain fees.
Cost basis is used to determine your gain or loss when you sell or dispose of the asset.
Example: If you purchased BTC for $1,000 and later sold it for $1,500, your cost basis is $1,000.
For 2025, Kraken did not report your cost basis to the IRS on Form 1099-DA.
The difference between your gross proceeds and your cost basis.
Example:
Sale price: $1,500
Cost basis: $1,000
Gain: $500
Your gain or loss is what determines your tax liability, not the gross proceeds alone.
The total amount you received from selling or disposing of digital assets.
Gross proceeds represent the full sales price before subtracting your original purchase price (cost basis), fees, or other adjustments.
For 2025, gross proceeds from digital asset sales are reported to the IRS on Form 1099-DA.
A gain or loss from selling digital assets held for more than one year. Long-term capital gains are generally taxed at reduced rates compared to short-term gains.
Income that is taxed at your regular income tax rates.
In the digital asset context, this may include:
These amounts may be reported on Form 1099-MISC if reporting thresholds are met.
A gain or loss from selling digital assets held for one year or less. Short-term gains are generally taxed at your ordinary income tax rates.
A wash sale generally occurs when you sell an asset at a loss and purchase the same or a substantially identical asset within a short time period (typically 30 days before or after the sale).
Under current U.S. tax law, wash sale rules formally apply to securities. Digital assets are not currently classified as securities for wash sale purposes; however, tax rules may change in the future. You should consult a tax advisor for guidance.