This FAQ covers how to set up SerenAI - a free desktop app - so you can review your Kraken Form 1099-DA and confirm it matches your transaction history before filing.
Before you begin, you'll need:
What you'll get:
Your 1099-DA is a tax form Kraken files with the IRS summarizing your crypto sales for the year - similar to a W-2, but for crypto. You'll need to download a copy so SerenAI can review it. To find the form:
1. Sign into your Kraken account (kraken.com/c)
2. Click your profile icon on the top-right corner of the screen
3. Select Settings from the dropdown menu, then click Tax center
4. Find your Form 1099-DA and click Download to save it as a CSV file. Save this file in a place you can easily find, like your Desktop or Downloads folder.
Your 1099-DA is calculated from your transaction history on Kraken. To verify it's accurate, SerenAI connects to your Kraken account and compares that history against your 1099-DA line by line. This requires a read-only API key, which means SerenAI can only view your data — it cannot trade or withdraw on your behalf.
5a. In your Kraken account, go to Settings → API, or visit kraken.com/u/security/api directly.
5b. Click Create API Key
5c. Configure the key with these exact settings:
Setting | What to Select |
|---|---|
Key Description | SerenAI Tax Review |
Permissions | Select only "Data: Query Ledger Entries and Export Data" |
Do NOT enable | Anything related to orders, trading, withdrawals, or account management |
5d. Click Generate Key. You will see your API Key and Private Key. Copy both and save them somewhere safe as the Private Key is only shown once.
This API key is read-only — it can view your transaction history, but cannot place trades, make withdrawals, or change any account settings. It never leaves your computer and is never shared with SerenAI's servers.
Seren Desktop is a free app that runs locally on your computer. It powers the AI that checks your tax documents, and because everything runs on your machine, your data is never sent to SerenAI's servers.
6. Go to serenb.com:
7. Click the Download button for your operating system (Mac, Windows, or Linux).
8. Open the downloaded file and follow the installation prompts.
9. Open Seren Desktop from your Applications (Mac) or Start Menu (Windows).
Creating a Seren account is free and takes just a minute. Once you sign in to Seren Desktop, you're authenticated automatically - no API keys needed. Your Seren account is completely separate from your Kraken account and doesn't provide access to your crypto.
10. When Seren Desktop opens, you'll see a Sign In dialog. If you already have a Seren account, enter your email and password and click Sign In. If not, click Sign up for Seren.
11. If you're new to Seren, you'll be taken to the sign-up page to create your account. From there, you can either enter your email address and create a password, or sign up instantly using GitHub, Google, or Microsoft.
12. Check your email for a verification link and click it to confirm your account.
13. Return to Seren Desktop and sign in with your new account. Once signed in, Seren Desktop automatically authenticates your session — no API key is needed. The app handles everything behind the scenes so you can get started right away.
Your Seren login does NOT give SerenAI access to your Kraken account or financial data. It only authenticates your Seren Desktop app.
Optional — API Key for Advanced Users
If you need an API key for command-line tools or external integrations, you can create one at console.serendb.com/api-keys. This is not required for Seren Desktop users.
An AI agent is a built-in smart assistant inside Seren Desktop. Just share your files and tell it what you need in plain English - no commands, no coding, no technical knowledge required.
14. In Seren Desktop, choose how to power your AI agent. At the bottom of the screen you'll see a model selector (e.g., "Claude Opus 4.5") and a publishers selector. You have three options:
Option | What It Means |
|---|---|
Use your own AI account | Connect your existing Claude, OpenAI, or Gemini account |
Use SerenBucks | Purchase credits within Seren Desktop to use Seren's AI agents |
15. Click + New Agent in the top-left to start a fresh agent session.
A "skill" is a pre-built recipe that tells the AI agent exactly how to do a specific job. For tax reconciliation, you need to add the Kraken 1099-DA Reconciliation skill - this teaches your agent how to compare your tax documents.
16. In the left sidebar, click the Skills section. You'll see a search bar and a + Create New Skill button.
17. In the search bar, type "tax" or "1099". You'll see the Kraken 1099 Reconciler skill appear in the results.
18. Click on the Kraken 1099 Tax Reconciler skill to activate it for your agent.
Upload your 1099-DA and the AI agent does all the work.
19. In the agent chat, upload your Kraken 1099-DA CSV (from Part 1). You can either:
20. Type a message describing your request - for example, "Please review my 1099-DA from Kraken" - and press Enter.
The agent will ask for your Kraken API Key and Private Key (from step 2). Provide them when prompted. The agent uses them to pull your trades directly from Kraken and cross-check them against your 1099-DA.
21. Wait while the agent processes your data. This usually takes 1-3 minutes depending on how many transactions you have.
22. When complete, the agent will show you a plain-language report including:
The report also includes:
23. Review any flagged items:
Flag Type | What It Means | What To Do |
|---|---|---|
Missing cost basis | No acquisition record for a disposition | Provide transfer records or contact Kraken |
Holding period gap | Can't determine short-term vs long-term | Verify acquisition date |
Proceeds mismatch | 1099-DA amount differs from raw trade data | Review with your tax preparer |
Fee treatment difference | Fees handled differently in 1099-DA vs trades | Usually minor — verify with CPA if large |
24. If you have complex issues (missing cost basis, DeFi transactions, or large discrepancies), the agent will recommend booking a session with a licensed CPA through CryptoBullseye.zone's Crypto Action Plan.
Once you complete the steps above, your review results are saved locally on your computer. You now have:
What's next?
Your access to and use of SerenAI's services are subject to SerenAI's Terms of Service. SerenAI is a third-party service over which Kraken has no control and for which Kraken assumes no responsibility. Kraken makes no representations or warranties regarding SerenAI's services, including their suitability for your needs. Using SerenAI is at your own risk, and Kraken disclaims any liability arising from such use. Your relationship with SerenAI is governed by separate terms and conditions to which Kraken is not a party. SerenAI does not provide tax, legal, or financial advice. Consult a licensed tax professional for guidance specific to your situation.