Where to Put Crypto on Your Tax Return?
To report cryptocurrency on your tax return, follow these steps:
- Form 1040: Answer “Yes” or “No” to the virtual currency question.
- Form 8949: Report cryptocurrency sales, exchanges, or capital transactions.
- Schedule D: Summarize total capital gains or losses from Form 8949.
- Schedule 1: Report income from mining, staking, or crypto payments.
- Form 8300: Report if you received more than $10,000 in crypto.
Reporting Different Types of Cryptocurrency Transactions
|
Transaction Type |
Taxable Event? |
Where to Report? |
Form/Document |
|
Buying cryptocurrency and holding |
No |
No reporting required |
N/A |
|
Selling cryptocurrency for cash |
Yes |
Report as capital gains or losses |
Form 8949, Schedule D |
|
Exchanging one cryptocurrency for another |
Yes |
Report as capital gains or losses |
Form 8949, Schedule D |
|
Using cryptocurrency to purchase goods/services |
Yes |
Report as capital gains or losses |
Form 8949, Schedule D |
|
Receiving cryptocurrency as payment for goods or services |
Yes |
Report as ordinary income |
Schedule 1 or Schedule C |
|
Mining or staking cryptocurrency |
Yes |
Report as ordinary income |
Schedule 1 or Schedule C |
|
Receiving over $10,000 in cryptocurrency |
Yes |
Report large crypto payments in business |
Form 8300 |
Frequently Asked Questions
Do I need to report cryptocurrency if I only bought it?
No, buying and holding crypto isn’t taxable. Report it only when sold or exchanged.
How is income from mining or staking reported?
Report mining or staking income as ordinary income on Schedule 1 or Schedule C.
What if I use crypto for purchases?
Using crypto to buy goods or services is a taxable sale. Report gains or losses on Form 8949.
Is exchanging one cryptocurrency for another taxable?
Yes, report gains or losses from exchanging crypto on Form 8949 and Schedule D.
Do I need to report cryptocurrency received as a gift?
No, but if you sell or exchange the gifted crypto, report the gains or losses on Form 8949.
