Essential Tax Forms for Crypto Investors
Below is a summary of key IRS forms for reporting cryptocurrency transactions in 2025:
| Form | Who Should File? | What to Report? |
|--------------|------------------------------------------|------------------------------------------|
| Form 8949 | Investors with capital gains/losses | Disposals of crypto (sales, trades) |
| Schedule D | Investors with net gains/losses | Summary of capital gains/losses |
| Schedule 1 | Earners of ordinary income (mining, staking) | Crypto income as "Other Income" (Line Z) |
| Schedule C | Self-employed/business income | Profit from crypto-related activities |
Detailed Breakdown of Crypto Tax Forms
Form 8949
Used to report individual cryptocurrency disposals (e.g., selling BTC for USD or trading ETH for SOL). Required details:
- Asset description
- Acquisition and disposal dates
- Proceeds and cost basis (USD)
- Resulting gain/loss
👉 Learn how to calculate cost basis
Schedule D
Summarizes net capital gains/losses from Form 8949. Filed alongside Form 1040.
Schedule 1
Reports ordinary income from:
- Mining rewards
- Staking yields
- Referral bonuses
Schedule C
For self-employed individuals/businesses earning crypto income.
FAQs About Crypto Tax Forms
1. Do I need to answer the crypto question on Form 1040?
Yes, if you:
- Sold/exchanged crypto in 2024.
- Earned crypto income (e.g., staking).
Exception: Holding/buying crypto without disposals doesn’t require a "Yes."
2. What records should I keep?
- Transaction logs (dates, amounts, types).
- Wallet/exchange addresses.
- Receipts for purchases/transfers.
👉 Track transactions automatically
3. Do I need to report crypto if I didn’t receive a 1099?
Yes. The IRS requires reporting all taxable crypto activity, even without 1099 forms.
Penalties for Non-Compliance
Failing to file crypto tax forms may result in:
- Fines (e.g., 5–25% of unpaid tax).
- Audits.
- Legal action (in extreme cases).
Final Tips for 2025
- Use crypto tax software to automate Form 8949 and Schedule D.
- Report foreign holdings (e.g., FBAR for balances >$10,000).
- Verify 1099 accuracy—exchanges may omit transferred assets.
Need Help?
Consult a tax professional or use trusted crypto tax tools to streamline reporting.