When do I have to report cryptocurrency on taxes?
You report crypto to the IRS for the year you sell, swap, spend, or earn it, while buying and holding is not taxable. The IRS treats it as property.
Vahe HakobyanEditor-in-chief
Updated Oct 5, 20263 min readFact-checked
On this page
- Moving crypto between wallets you own is not taxable.
- Mining, staking, and airdrop income is taxable when received.
- The IRS asks a digital asset question on your annual return.
- You report each event in the year it happens.
Under US tax rules, the IRS classifies cryptocurrency as property, not as money. A sale, swap, or payment can create a gain or loss, and a Crypto Profit Calculator can help you find the figure.
Which crypto actions are taxable?
The IRS taxes crypto when you sell, swap, or spend it. Mining, staking, and airdrop income is taxable when you receive it. You must report your digital asset transactions whether they produce a gain or loss. Tax on cryptocurrency explains what the IRS taxes.
Which crypto actions are not taxable?
A move between wallets you own is not a sale. The IRS looks for a disposition, not a new address. Buying and holding crypto is also not taxable.
- Move crypto from an exchange account to a wallet you control.
- Send crypto from a wallet you control to another wallet you control.
- Consolidate coins across wallets you own.
Which IRS forms and agency apply?
The IRS is the agency that collects the tax. Sales and swaps go on the IRS capital gains forms and Schedule D. report cryptocurrency on your taxes covers the filing steps.
The annual return asks a digital asset question on Form 1040 and other forms. Every taxpayer must answer it. The IRS revised the question in 2024.
Which tax year and deadline apply?
You report crypto with your annual federal tax return for the tax year when the event happened. For most people, that return is due in April of the following year.
Frequently asked questions
Cost basis is usually what you paid, including fees. Subtract that from what you received to find your gain or loss.
Capital losses can offset capital gains. A limited amount of leftover loss can also offset ordinary income.
Keep the date, amount, and fees for every purchase, sale, swap, and income receipt. Those records show your cost basis and holding period.
US exchanges usually send information forms to the IRS and to you for some transactions. You still report your own transactions.
