Form 1099 is used to report non-employment income (income you receive outside of your job) to the IRS. Currently, there are more than 20 different variations of Form 1099. In the past, the versions most commonly used by cryptocurrency exchanges were Form 1099-B, Form 1099-MISC, and Form 1099-K. Starting in 2026, however, certain crypto brokers will be required to issue Form 1099-DA (Digital Asset) to users for all capital gains and losses.

When you receive a Form 1099-DA or another 1099 form from your crypto exchange, an identical copy is filed with the IRS. These forms are filed by brokers - exchanges like Coinbase - to let both the IRS and the taxpayer know what income was earned on their platform so that taxpayers can correctly report this income on their tax return.

The IRS uses these filed 1099s to make sure taxpayers are reporting the correct amount of income on their tax return. It's important to note that any income, whether it is reported through a 1099 or not, is required to be reported on your tax return.

Learn more about 1099-DA and when it is going into effect here.

No, CoinLedger does not provide 1099's. CoinLedger is not a broker nor a cryptocurrency exchange, and thus is not the entity required by law to file 1099’s to you and the IRS.

Rather, we consolidate your entire crypto transaction history, across all of the wallets and exchanges you have used, to produce comprehensive, IRS-compliant tax reports, which you can use to report your crypto on your taxes.

A 1099 is a tax form that is sent out by individual brokers. The information on this form then needs to be transferred to the IRS Form 8949 in order to be filed with the IRS. By importing your crypto data into CoinLedger, our software automatically does the transfer of that information for you and generates your Form 8949.

Essentially, when you add each of your crypto platforms into CoinLedger, this process replaces the individual 1099 that you get from an exchange. As such, you actually do not need to file a separate copy of your 1099 in addition to Form 8949, as Form 8949 already includes all of the necessary capital gain/loss information the IRS needs to see.

No, you should not import your Form 1099's into CoinLedger and you are not required to do so. All you need to do to report your crypto on your taxes is import each exchange, wallet and blockchain you have used into CoinLedger. Our software will use this data to calculate your gains and losses as well as your crypto income for the year.

This process essentially replaces the individual 1099 that you get from an exchange, since the information from your various 1099 forms are used to fill out the IRS Form 8949. CoinLedger automatically fills out the 8949 with this information (by calculating your gains and losses using your transaction history data), which saves you time and makes the process of filing your taxes considerably easier.

Indeed, importing your 1099 into CoinLedger would likely lead to inaccurate or duplicated data. Although it might seem easy and convenient, 1099's are not the best solutions for reporting your crypto on your taxes, at least for most cryptocurrency investors. This is because trading crypto is fundamentally different from trading stocks and securities.

For example, if you buy BTC on Cash App and then transfer it to Kraken and subsequently sell it, you will receive two 1099's, one from each exchange. However, Kraken has no way of tracking your cost basis, or the amount that you originally paid for that BTC, from Cash App. Therefore, the 1099-B that Kraken issues will be incomplete. Importing this 1099 into CoinLedger would lead to missing data. That's why you don't need to import your 1099, and should simply import your transaction history data instead.

The tax reports produced by CoinLedger and available on the Tax Reports page are all you need to sufficiently report your crypto activity on your tax return. Once you have finished importing, classifying, and reviewing your data, you can purchase and download your tax reports. In most cases, these reports are all you need to file your taxes.

If you file your taxes using a service like TurboTax, you can report both your capital gains and losses as well as your income using the tax reports CoinLedger provides. Learn more about this process here. You should NOT import your CoinLedger tax reports and your 1099's into TurboTax. This could cause your income or capital gains to be double counted and reported twice on your return, potentially inflating your capital gains.

Likewise, if you file your taxes on your own without the use of a service like TurboTax, make sure you do not report this information to the IRS twice. Remember that the IRS already has your 1099; therefore, submitting it again to them is not necessary.

Submitting your Form 8949, as well as using the Income Report CoinLedger provides to report your crypto income, are the only steps you need to take to file your crypto taxes.

If you file your taxes with a tax professional, you should provide your accountant with your CoinLedger tax reports, including the Form 8949 and the Income Report. CoinLedger summarizes all your income types in the Taxable Income summary on the Tax Reports page within the app (shown below). You should share all of this information with your accountant. This is all they should need to file your crypto taxes.

You can send the total amounts of income shown below, broken down by category, directly to your accountant. The Income Report provides a detailed list of each income distribution as well. Learn more about the Income Report and how it can be used here.

If your accountant requests more information to verify the capital gains and income calculations generated by CoinLedger, you can send them all of the 1099s you received this year. However, keep in mind that as long as your entire transaction history has been imported into CoinLedger, you should not need to report any additional information to the IRS. Using CoinLedger's tax reports will suffice.

Do not report income from both the CoinLedger income reports and your income from your 1099s to the IRS, as this could lead to this information being reported twice on your taxes.

When providing your crypto income reports and your 1099s to your accountant, make sure to clarify that any crypto income reported through your 1099s is already included in the income reports provided by CoinLedger.

If your accountant is looking for even more detailed information, you can send them the Audit Trail report. This report details the prices, timestamps, and data sources for every tax calculation CoinLedger made on your tax report. You can download this document on the Tax Reports page.