When does a cryptocurrency exchange issue a 1099-MISC?

Some cryptocurrency exchanges issue Form 1099-MISC when customers earn at least $600 of cryptocurrency income through the platform during the tax year. You should receive the form by January 31 of the following year. Cryptocurrency income is generally reported as ‘Other income’ on Form 1099-MISC. What is the difference between 1099 and 1099-MISC?

Do you need to report cryptocurrency on IRS Form 8300?

The Infrastructure Bill includes an information reporting requirement for cryptocurrency asset exchanges and custodians on an IRS Form 1099, and an information reporting requirement for certain persons who accept large payments in cryptocurrency in such person’s trade or business on an IRS Form 8300.

What is a 1099-MISC form?

This form is typically used by cryptocurrency exchanges to report interest, referral, and staking income to the IRS. In most cases, exchanges choose to send Form 1099-MISC when a customer has earned at least $600 of income. Form 1099-MISC does not contain information about cryptocurrency capital gains and losses .

Do I need a 1099-K If I trade crypto?

As is the case for many crypto tax forms, if you’ve received a Form 1099-K, so has the IRS. The form alerts the IRS that you have been trading cryptocurrency and thus you will likely be expected to report crypto on your tax return. The 1099-K doesn’t report individual transactions, just the cumulative amount traded.