Form 1099-DA Explained: What Your Exchange Just Told the IRS

Updated September 17, 2026. Applies to tax year 2025 returns filed in 2026 and forward.

For years, crypto tax worked on the honor system. Exchanges mostly sent nothing to the IRS, and if you did not report, nobody had a number to check you against. That ended with tax year 2025. US crypto brokers now file Form 1099-DA, Digital Asset Proceeds From Broker Transactions, with the IRS and send you a copy. The IRS has your gross proceeds. Your return has to agree with them, or explain why it does not.

The short version: the 1099-DA usually reports what you sold for. It often does not know what you paid. If you file straight off the form, you can be taxed on your entire proceeds as if your cost basis was zero. Fixing that is your job, and it is exactly what crypto tax software is for.

What Form 1099-DA reports

The form comes from any US exchange or custodial broker where you sold, swapped, or otherwise disposed of digital assets. Depending on the year and the asset, it can include:

Gross proceeds from each sale or exchange. Required for transactions on or after January 1, 2025.
Cost basis, but only for assets you acquired in that same broker account on or after January 1, 2026. Anything you bought earlier, or transferred in from a wallet or another exchange, generally shows no basis.
Dates acquired and sold, where the broker has them, which determine short-term versus long-term treatment.
Whether the basis was reported to the IRS or not.

Why your 1099-DA is probably wrong or incomplete

Not wrong in the sense that the broker made an error. Wrong in the sense that it cannot see your whole picture. Common gaps:

1. Transferred-in coins have no basis

Bought ETH on one exchange in 2022, moved it to a hardware wallet, sent it to a different exchange and sold it in 2025. The selling exchange reports the full sale amount and no basis. Your real gain might be a fraction of that, or a loss.

2. Self-custody and DeFi are invisible

Swaps on a DEX, LP positions, staking rewards, bridges, NFT mints: none of that shows up on a 1099-DA because there is no broker. You still owe tax on it, and the IRS still expects it on your return.

3. Multiple exchanges, multiple forms, no reconciliation

Each broker reports its own slice. Nobody adds them up or nets your gains against your losses. That is the reconciliation step you have to do.

4. Lot selection is up to you

Brokers default to a method, usually first-in first-out. If you have been tracking specific lots (which can legally cut your bill), your numbers and theirs will differ, and you need records that back yours up.

What to do with your 1099-DA

Do not ignore it. The IRS receives its copy electronically. A return that omits reported proceeds is the easiest mismatch there is for their automated matching to flag.
Import everything, not just the broker with the form. Every exchange, every wallet address, every chain. The form is one input, not the answer.
Establish basis for every disposal. This is the part that saves you real money. Software does it by walking your full transaction history across sources.
Reconcile against the form. Proceeds on your Form 8949 should tie to proceeds on the 1099-DA for that broker. Where basis differs because the broker did not have it, that is normal and expected.
File Form 8949 and Schedule D with the correct basis, and keep the transaction records for at least three years.

If you have losses: the 1099-DA does not net anything for you. Report every loss. They offset gains first, then up to $3,000 of ordinary income per year, and the remainder carries forward indefinitely.

1099-DA versus the old 1099-B and 1099-MISC

Form	What it covers	Crypto status
1099-DA	Digital asset sales and exchanges via a broker	New standard from tax year 2025
1099-B	Traditional securities sales	Some exchanges used it before; being replaced for crypto
1099-MISC	Miscellaneous income above $600	Still used by some exchanges for staking and rewards income

Which software handles 1099-DA reconciliation

All four platforms compared on our home page import from the major US brokers and let you pull in wallets and DeFi activity alongside them, so basis can be established across sources. They all let you import and preview your gains for free before paying for the report.

Get your real number before the IRS gets theirs

Run a quick estimate, then compare the tools that will produce your Form 8949.

Open the free gains calculator

Frequently asked

Will I get a 1099-DA if I only held and never sold?

No. The form reports dispositions. Holding is not a taxable event.

I only swapped coins, never cashed out to dollars. Do I get one?

Yes, if the swap happened on a US broker. A coin-to-coin swap is a sale of what you gave up.

What if the proceeds on the form look too high?

They usually are the gross sale amount with no basis subtracted, which is why they look like income. Your basis reduces that to the actual gain on your Form 8949.

Does a foreign exchange send a 1099-DA?

Generally not. You still owe US tax on gains from foreign exchanges and must report them.

This guide is general information, not tax advice. Rules change and your facts matter. Talk to a qualified tax professional about your return.