Was it 2024-1040 or 2025? I’m not even sure what dates to write things down to zero. Any help?

TurboTax Online is not able to upload the 8949 generated from Koinly. Says error. Do I just type all this in manually?

In 2025 the IRS is mandating we do per wallet or per account basis tracking. I understand this system, its intents, etc. I’m also completely on board that funds on Coinbase are a separate wallet from funds on Kraken, and both are separate from the funds that I store on my Trezor.

Self custody is where it gets murky. I use multiple addresses per chain, and I have funds on many chains. I’m confused at what the IRS would interpret as a single “wallet/address” in order to be complaint. A few scenarios I am thinking about below:

1. Is the address 0xabc on Ethereum and the same 0xabc address on Polygon the same or a different wallet?

2. If seed phrase <whatever> generates address 0xabc on Ethereum/Polygon/<insert evm Network> and it generates address cosmos1def on Cosmos networks, is that the same or a different wallet.

3. What if I have a seed phrase that I use HD derivation with. Say that generates addresses 0xabc with index 0, and address 0xdef with index 1, and both are used on Ethereum, are they the same or different?

4. Imagine that I pregenerated a lot of seed phrases with dice rolls, added them to a binder, and put duplicate copies in two geographically independent safety deposit boxes. They were created, and are stored, completely independently of any software. Occasionally I go grab a new seed phrase when I want a new wallet. The generation method and storage method are all analog and the same, are those the same or different?

5. If I generated different seedphrases inside metamask software, are they the same because metamask made them all?

6. What if I have a ledger seed phrase and add a 25th word? Same or different wallet?

I’m sure that the answer is some combination of “it depends” (sigh) and that it’s not well specified. Is there some well-accepted definition? What is likely to be the most risky but defensible position (and yes, I know you are internet strangers not lawyers or CPA; especially not my lawyers or CPA; and no responses should be taken as financial or legal advice).

I want to be compliant but it feels like the IRS has specifically made this vague and so underspecified that doing so in a way I feel confident about feels more or less like an impossibility. I generally only sell on CEXs (with the occasional DEX swap) so its tough for me to believe that doing per wallet accounting by making every <address,network> pair its own wallet would produce meaningfully different outputs, at the cost of increasing the burden to calculate such a thing myself.

I’m tempted to just lump everything that isnt on an exchange into the same “wallet” that I just label as a “self custody” account. If some poor IRS agent wanted to find the discrepancy I’d be happy to pay with interest and penalties. On the other hand, I can’t even imagine how the IRS would disprove distinct wallets, especially in cases like 2/3/4/5/6. Surely they can’t make me start inputting seed phrases from a binder into ledger or sit with a trezor and start showing them how a single input seed phrase generates the stated addresses on different chains, derives via HD, or derives with a 25th word.

Before anyone says “just use X software it handles it”: I’m a crazy person, I wrote my own software, and I’m not about to go pay thousands of dollars to import 10 years of history to something else.

Someone explain this to me like I'm actually stupid, please. My brain isn't functioning at this point. My mother has just received a life changing medical diagnosis in the last 48 hours and I am trying not to have a nervous breakdown while also caring for the rest of my family and work and so on while absorbing the information that we likely have very little time left together. I stupidly put my taxes off because I had this question back in April, and things have just been very busy.

So: I traded crypto for like 5 days on eToro last year. My "account summary" for the year says I made a whopping 37 dollars profit across like 23 transactions. I did not transfer any coin into or out of different wallets or platforms or anything like that; everything took place directly on eToro.

On the other hand, my 1099-DA says my net gain per the numbers they used for proceeds and cost basis is like $16.88.

I checked my IRS transcript and my 1099-DA from them is there on my income transcript, with cost basis and proceeds and dates per each sale, but it just says "gross proceeds" under "reported proceeds to IRS" with no dollar amount. All of the numbers for "cost basis" and "proceeds" are rounded up, unlike on my 1099-DA. It has an aggregated cost basis and an aggregated proceeds at the top.

So, my question is just how do I get this reported and the 8949 done, in the cheapest and most correct way that isn't going to trigger an audit. I always use (so already bought back in like January) turbo task desktop. I am self employed and also sold a vehicle that was used for work last year, so my taxes are already always a pain and more likely to be scrutinized. I see that desktop does NOT connect to eToro so I'd be manually entering everything, as far as I can tell. Which is fine; if that's the way i have to do it 23 transactions isn't too bad. But the directions are extremely poor on the desktop version. So just making sure that's the only way and I need to list each individual sale vs using the aggregated numbers. I'm also a bit concerned about why my account statement says I made 37 dollars and my 1099-DA says ~$17; I assume I go with the 1099?

So.. is it just that straightforward, when the trading was that simple? I do not see any reason that I need to pay for crypto tax software since nothing was moved/is missing dates etc and therefore nothing shows massive gains that aren't actually real. Am I interpreting this situation correctly?

Thanks in advance.

Filling out the 1 line summary of all transactions on From 8949, google says the irs checking engine wants to see "proceeds" match the 1099-DA issued by the exchange. So use that figure for "proceeds" column.

One hopes it will know to add the short term and long term side and only check the sum total of both, since the individual sums are not going to be accurate if you did any transfers.

Next, use your actual cost basis and actual P/L figures.

Then, in column (f) use "B" for "basis correction", and enter the correction amount in column (g).

Where "correction amount" in (g) is the difference between your actual proceeds vs Kraken's 1099 reported proceeds.

So if your proceeds are $12k and your 1099 only shows $10k, your column (g) adjustment is $2k.

Just so long as P/L = (Proceeds - Basis) +/- adjustment (g).

This however opens up another question. E.g. with HR Block offices you must enter "M" in column (f) in order to unlock the "attachment upload" option for multi-page 8949 uploads. My agent couldn't get it to upload without entering that first (a couple of years ago anyway). So if you use "B" in column (g), I wonder if it will still prompt for an upload of full transaction list.

Is this the correct way to report on the 8949 Summary line?

It is done once for each exchange on the long term and short term transactions summary page.

And is there some way to explain this adjustment in (g) on the tax return so they understand what they are looking at? Thanks!

Not sure what other details might be helpful to include here, but it's basically the situation I laid out in the title.

This is kind of the scenario:

• I onramped with a CEX
• Made gains trading on a DEX
• Made losses on a lending platform
• Made losses on a DEX
• Offramped with well less than the onramp amount, after all of the losses

Ultimately, I marked "No" on the digital assets question and did not file the transactions.

All of this happened in the same tax year, so no net gains. In fact, losses.

Few questions:

• How bad is it, what I did?
• Do I need a tax lawyer to clean this mess up?
• Could I fix this with a CPA?
• Could I fix this just on my own?
• What happens if this is not fixed by the amendment filing expiration deadline?

Edit:

- As for trying to fix this in itself...how do you even report the losses from getting liquidated on a lending platform, where the "sales" are done for you by the smart contract? And how do you even begin to piece together the cost basis and losses story if it's spread across different wallets on different chains, potentially with lost wallets?

Thank you in advance.

Coin tracking default labels all transactions as "proceeds not reported, basis not reported" or unreported transactions for Tax Year 2025 (currently filing with extension).

You need the correct type of transaction category to fill out form 8949. You have to manually add the correct "transaction type/category" by adding it to the "group" setting of each specific transaction. They detail this in "1099-DA Flagging and Form 8949 Section Assignment"

e.g.: "Short term reported with cost basis", "Long term reported without cost basis", etc..

Accordingly using the proper section "A" through "J" Form 8949 checkbox assignment for each.

However If you have many transactions doing this manually it's not possible. So if you try to categorize it as "transaction has been reported without basis" now you are forced to designate it as short term or long term transaction.

This is not possible to do without going through the entire list of trades which is not feasible.

This means it basically doesn't work and you can't get a proper 8949 printout with the proper check box assignment.

It's important to have this so when the irs reviews it it aligns with what they've received from the exchanges. To my understanding for 2025 most exchanges have only sent net sale/proceeds.

The problem is furthermore compounded by what I've heard that if you report it as "unreported" and it was reported, they may add it to your totals (doubling your transaction count), creating confusion. So you need to get the designation correct and to match what they've sent on their 1099-DA.

Does anyone have any suggestions or solution to this? Thanks.

I read a lot of buzz around people getting lot of IT department notices for not or incorrectly reporting their crypto gains and losses etc . But But But ! I heard No one talking that if anyone got a notice just for considering crypto futures and options as business income. Had anyone actually got the notice for this ? and if yes how you handled that?

I've been looking at DeFi Tax as an option for this year and got confused by the founder's background, so I'm hoping someone here can clear it up.

Janna Scott, the founder, is described across a lot of podcast bios and press as having "worked directly with the IRS and SEC," collaborating with regulators and universities, and building "regulator-validated" reports that stopped IRS audits.

What I can actually verify: she's an IRS Enrolled Agent with an MBA, and she's had state-level government finance roles and private tax consulting work. All legit. But being an EA means you're licensed to represent taxpayers before the IRS. It doesn't mean you worked for the IRS. And I can't find anything naming a specific IRS or SEC role, contract, or official review of DeFi Tax.

So my questions:

1. Does anyone know what "worked with the IRS and SEC" refers to here? Client representation? Submitting research? Something formal?
2. Has anyone used DeFi Tax and then gone through an actual audit with those reports?
3. Has anyone compared its output against Koinly, CoinTracker, etc. on the same wallets?

Not accusing anyone of anything. I just want to understand what's being claimed before I trust a tool with my taxes, since "audit-ready" is the main selling point.

I have a few NFTs bought years ago and I’m finally getting around to selling them off. It is actually worth my time to do so, but I have no experience with this and don’t know how it works in Canada. What are some tips you guys have? Where can I dump them? Does UnsellableNFTs still work? I can’t get my MetaMask to connect.

Any advice helps

Current German cryptocurrency tax rules: 😄

Tax-Free (Long-Term): If you hold your cryptocurrency for more than one year (365 days) before selling, trading, or spending it, your capital gains are 100% tax-free.

Taxable (Short-Term): If you dispose of crypto held for one year or less, your profits count as private sales transactions (speculative transactions under § 23 EStG) and are taxed at your personal income tax rate (up to 45% plus the solidarity surcharge).

Proposed changes: 😒

In short, the proposals under discussion are bad for crypto as tax must be paid when selling, trading or otherwise spending it - irrespective of how long the crypto was held. On a positive it is speculated that those who bought crypto before 2027 will be exempt from these detrimental tax changes.

My crypto background: 🤔

I have held crypto since 2013, having bought via MtGox (no comment) and other exchanges which simply no longer exist. Later I have bought and sold with current crypto exchanges, e.g. Binance, Kraken, etc. Over the years the crypto has moved back-and-forth between various crypto exchanges and various HW wallets. Generally speaking I have always been a HODLER, although this year I have sold (think panic selling) and bought (think FOMO). Whilst some of this year's trades made a profit, most did not as I ended up buying back at a higher price. In short no tax is due as on balance it is sadly all too clear I have lost rather than made any profit this year.

The problem: 💩

I cannot reconstruct the paper trail going back 13 years. Therefore, I cannot prove when I bought BTC. This was never a problem until the proposed tax changes under discussion.

What can I do? The best (still awful) ideas I currently have are:

A. Send all crypto from the HW wallets to an exchange. Sell all of it and immediately buy it back. Then send it back to a new HW wallet. Later, if required, I can then prove exactly when I bought my crypto.

Downsides are the fees involved and the risk of having all my crypto on an exchange, unless I do it in chunks.

B. Send all crypto to an exchange. Sell it. Transfer the money to my bank. Then transfer the money to an exchange (same one or different) and repurchase the crypto sending to a new wallet.

Downsides are the fees to pay, plus if the transfer to the bank is blocked due to the amount involved (around 350k Euro). Plus transferring the money from the bank back to an exchange - my bank limit is around 3k Euro per day.

C. Do nothing and see if the tax rules in Germany do actually change. I am still uneasy though with the paper trail chaos.

I like to sleep easy at night and have no problem paying tax as required, and whilst the paper trail is a mess, I know I have no taxes to pay - my BTC holdings are down compared to the start of the year. I say this because it is essential that any action I take does not trigger the tax authorities - not because I have anything to hide, but due to my paper trail chaos.

I’m sorry - I've wasted enough of your time. The truth is though I am genuinely interested in how others would approach my predicament. For those who respond – I thank you 👍

Hallo zusammen, kurze Frage zur Besteuerung von Bitcoin. Ich habe Bitcoin in meinem Broker gekauft und kann diese in der Zukunft auf mein Self-Custody Wallet übertragen, z. B. Ledger oder? Oder an ein Familienmitglied weitergeben. Wie funktioniert das steuerlich? Wie beweist man dem Finanzamt, dass diese Bitcoins immer noch die gleichen sind die ich gekauft habe? Reichen da die Broker-Kontoauszüge und Steuerdetails? Gerade wegen der 1-Jahres-Steuerregelung in Deutschland.

I've been working with a tax firm recommended on Summ and other crypto tax software websites. For over several months.

Unfortunately I am not confident they will be able to meet the October 15 deadline as originally estimated.

What are my options? Should I file with what I have and then hire someone else to fix things? I have worked with crypto tax firms before, so this experience has been shocking to me.

Long story short, i am involved in crypto but i am not a trader. I run projects with various teams in the space and have made this from less than rm 500 back in January.

I have been dabbling in the crypto space since 2023, made six figures before and have lost it all because of bad trading. Restarted from almost zero since January.

I am planning to cash everything out soon when my holdings go up abit more. I have never filed for taxes but id like by money to be fully out and useable in the Malaysian economy as id like to invest 90% of it in ETFs . Any tax advice?

I’ve been gambling on Stake throughout the year and ended up around $50k ahead overall, but it wasn’t from one huge win. It was a lot of wins and losses across sportsbook bets and casino games over a bunch of different sessions.

I deposited crypto at different points, played with it, withdrew some when I was up, then eventually sold the withdrawn crypto through an exchange and moved the cash to my bank.

What I’m struggling with is how detailed the reporting is supposed to get.

My exchange can obviously see the crypto coming back from Stake and being sold, but it has no context for all the gambling activity that happened before that. On the Stake side, there are hundreds of individual bets, so I’m not sure whether I’m expected to account for every wager separately or if there’s a reasonable way to summarize wins and losses by session.

I’m also confused about what happens when the crypto leaves Stake. If I withdraw $10k worth of crypto after a winning stretch and sell it shortly after, am I treating the value at withdrawal as the new basis and only reporting the price movement after that as a crypto gain or loss?

For anyone who has dealt with this before, what records did you actually keep?

Did you export the full betting history, just deposits and withdrawals, or create your own summary of sessions and net results?

Also wondering whether this is something a regular CPA can usually handle or if it’s worth finding someone who specifically deals with both gambling and crypto.

I’m trying to report everything properly, I just don’t want to accidentally treat all the exchange proceeds as crypto gains when a lot of it came from gambling winnings.

I'm a UK resident. Over the last twelve months ish I funded an arbitrage bot and it generated a wallet, ran high-frequency trades automatically, and made profits well over the £3,000 Capital Gains allowance. I withdrew part of the profits to Binance.

With the Oct 5th Self Assessment registration deadline here, I have a problem: the bot doesn't give you a CSV of the thousands of micro-trades. I only have:

1. My initial deposit amount.

2. The public wallet address the bot created.

3. Full records of the withdrawals back to Binance.

My questions:

1. Can I just plug the bot's public wallet address directly into UK tax tools like Koinly or Recap? Do they handle high-frequency arbitrage routing correctly without throwing missing-cost-basis errors?

2. Can I just report a "best estimate" to HMRC on the SA108?

3. Has anyone had HMRC challenge whether automated bot arbitrage is trading income instead of capital gains?

Any advice from people who have been through this would be massively appreciated.

Hey r/CryptoTax!

I'm James and I'm a product manager on the tax team at Coinbase. I own our 1099-DA and US Tax Center, and I'd love your feedback as we build for next tax season.

You may already know this is the first year Coinbase will report cost basis to the IRS on the 1099-DA for covered transactions. Covered = crypto you bought on Coinbase on or after January 1, 2026 and held there until you sold it.

I'm particularly interested in the Coinbase side - your forms, transaction reports, and Tax Center

1. What questions or confusion do you have about your Coinbase tax forms or reports?
2. Do you pull your Coinbase data into crypto tax software, or file using only your Coinbase forms and reports? And how do you file - TurboTax, a CPA, something else?
3. What do you wish Tax Center showed you or let you do?
4. If we could change one thing about Coinbase tax before next season, what should it be?

Reply here, DM me, or if you'd rather talk it through, I'm happy to email or hop on a quick call.

Heads-up: nothing I say is tax advice. Please don't post account details, and know that I won't DM you first. No one from Coinbase will ever ask for your password, 2FA codes, or seed phrases.

Thanks so much - I really appreciate it!

Edit: this post leans US because of the 1099-DA, but if you're outside the US, I want your feedback too - reply or DM me.

James

My 2025 1099-MISC shows "other income." I think this is an incorrect reporting because I don't receive staking rewards from cbETH. The price of cbETH just increases as Coinbase itself stakes, and I don't receive any additional cbETH from staking. My total cbETH is 100% exactly the quantity that shows in my purchases. On their Tax page, it shows that I'm consistently receiving "CBETH income earned"

Anyone know about this? Should I just file my taxes and ignore the 1099-MISC or ?