Form 1099-DA: How to Read It and Fill In Basis

Form 1099-DA is the information return U.S. crypto brokers file with the IRS for sales of digital assets, and a copy goes to you. For sales made in 2025, brokers had to report gross proceeds but were not required to report your cost basis, which is why most 2025 forms show a blank basis box. From January 1, 2026, brokers must also report basis, but only for "covered" assets: coins bought after 2025 in the same custodial account and held there until sold. Everything else, including coins you transferred in, can still arrive without basis. The form never changes what you owe. It changes what the IRS can match against your Form 8949, so your job is to make the two agree, line for line.

This page walks through the form box by box, explains the covered versus noncovered split that decides whether basis appears, and works a full reconciliation from a hypothetical 1099-DA to Form 8949. Every rule below comes from the IRS's own instructions and notices, read on October 22, 2026, and every dollar amount in the examples is invented for illustration. One box on the form only matters for tokenized securities: wash sale loss disallowed (box 1i). Our wash sale rule guide explains why it stays blank for ordinary crypto.

Why a New Form Exists at All

Section 80603 of the Infrastructure Investment and Jobs Act of 2021 changed the broker reporting provisions in section 6045 of the Internal Revenue Code to spell out how digital asset transactions should be reported and to extend basis reporting to all digital assets, as Notice 2024-57 summarizes. Treasury and the IRS issued final regulations, Treasury Decision 10000, published in the Federal Register on July 9, 2024. Those regulations created Form 1099-DA, "Digital Asset Proceeds From Broker Transactions," and set the phase-in that most people now meet for the first time when they open their 2025 tax documents.

The phase-in has two steps, and nearly every confusing thing about the form traces back to them:

The IRS digital assets page states the same split in two sentences: brokers must report gross proceeds for transactions effected on or after January 1, 2025, and must report basis on certain transactions effected on or after January 1, 2026. "Certain" is doing a lot of work there, and the next section explains which ones.

It also helps to know who is a broker for this purpose. The instructions define a broker as anyone who, in the ordinary course of business, stands ready to effect sales of digital assets for others. That reaches custodial trading platforms, operators of digital asset kiosks, certain payment processors, and issuers that regularly redeem tokens they created. The same instructions say a business is not a broker merely because it validates transactions through proof of work or proof of stake, or because it sells hardware or software that lets users control their own private keys. A self-custody wallet maker does not send you a 1099-DA.

Covered vs Noncovered: The Test That Decides Whether Basis Appears

The instructions use the securities-reporting vocabulary of "covered" and "noncovered" securities. For Form 1099-DA, a covered security is a digital asset acquired after 2025 for cash, stored-value cards, different digital assets, or other property or services, in an account for which the broker provided custodial services, and held in that account until the broker effects the sale.

Read that slowly and three practical consequences fall out.

Anything acquired before January 1, 2026, is noncovered. Bitcoin you bought in 2021 and sell in 2027 through the same exchange will still show up without mandatory basis reporting. The broker may report it voluntarily, but it does not have to.

Anything transferred in is noncovered. The instructions list "a digital asset that was transferred in to the broker providing custodial services" as noncovered. If you buy on one platform, withdraw to a hardware wallet, and later deposit and sell on a second platform, the second platform has no obligation to report basis, even if all of it happened after 2025. Which units count as sold from each account is set by the wallet-by-wallet identification rules that apply from 2025.

Information you hand the broker does not make it covered. The IRS's broker-reporting FAQ addresses a customer who asks the broker to report the basis of transferred-in coins. The answer is no: purchase information a customer provides, or that a transferring broker passes along, can be used for lot ordering (deciding which units were sold) but not for reporting basis on the 1099-DA. Box 8 on the form flags when a broker relied on that kind of customer-provided acquisition information.

So the honest expectation for most long-time holders is that blank basis boxes will persist well beyond 2025. Covered status only builds up as new purchases are made after 2025 and stay on the platform where they were bought.

Box-by-Box: What Each Line on Form 1099-DA Means

The table below follows the 2025 Instructions for Form 1099-DA (dated May 30, 2025) and adds what each box means for you when you prepare your return. Boxes 10 and 13 are reserved.

Two details in that table explain most "the numbers look wrong" complaints. First, box 1f is already reduced by transaction costs, so subtracting the platform fee again overstates your loss. Second, box 1c runs to 18 decimal places, so a sale of 0.000000000000000001 units of dust can legitimately produce its own line.

What the 2025 Form Tells the IRS, and What It Leaves to You

When the IRS receives a 2025 Form 1099-DA, it learns your name and taxpayer identification number, which asset you sold, how many units, when, and for how much. It does not learn what you paid. That gap is the whole reason this form generates anxiety, and the arithmetic of the gap is simple: Form 8949 computes gain as proceeds in column (d) minus basis in column (e), plus any adjustment in column (g). Leave column (e) empty and the entire proceeds amount becomes gain.

The Instructions for Form 8949 (2025) added six new checkboxes for digital assets so that these lines can be sorted correctly:

The Form 8949 instructions also say plainly that digital asset transactions do not go in the older boxes C and F. If you used software that still sorts crypto into C and F, check the export before filing.

For lines in boxes H and K, the instruction is direct: enter the correct basis in column (e). The worksheet guidance adds that when basis was not reported to the IRS, you enter the correct basis in column (e) and -0- in column (g). There is nothing to "correct" on the form itself, because the broker reported exactly what the rules required of it.

A Worked Reconciliation: From Form 1099-DA to Form 8949

The example uses invented figures so you can follow each step. The structure, not the numbers, is the point.

The facts (hypothetical). Dana holds an account at Exchange B.

What arrives in early 2026. Exchange B's 2025 Form 1099-DA shows box 1b Ethereum, box 1c 2.5, box 1e 11/03/2025, and box 1f $8,200. Box 1d and box 1g are blank, box 2 is unchecked, and box 9 is checked. Box 12a shows the 1.0 unit Dana transferred in. Exchange B's own transaction report (separate from the tax form) shows that it relieved Lot 1 first and then 1.5 ETH of Lot 2. Assume Dana's records agree with that order.

Step 1: Split the sale into lots. One line on the 1099-DA becomes two lines on Form 8949, because the units came from lots with different holding periods. Allocating the $8,200 by units gives $3,280 per ETH. Two lots is the easy case; anyone running a regular dollar-cost averaging schedule creates a new lot with every purchase, and a single sale can split across a dozen of them.

Step 2: Compute each lot's basis. Lot 1's basis is its full $1,620. For Lot 2, 1.5 of 2.0 units were sold, so basis is 75% of $7,050, which is $5,287.50.

Step 3: Assign holding periods and boxes. Lot 1 was held from February 2023 to November 2025, more than one year, so it is long-term. Lot 2 was held from January to November 2025, so it is short-term. Neither had basis reported to the IRS.

Step 4: Check the match. Column (d) totals $8,200.00, exactly box 1f. That equality is what an automated matching program can see, so it is the first thing to verify. The basis column is entirely Dana's, and it must be backed by her own records: the Exchange A purchase confirmation, the withdrawal record, and the Exchange B deposit record that ties the same 1.0 ETH across both platforms.

What would have happened with a blank column (e). Had Dana entered the proceeds but no basis, her return would show a $8,200 gain instead of $1,292.50. On the other side, entering a basis she cannot document invites the reverse problem in an examination. The reconciliation is only as strong as the paper trail behind each lot.

The same sale in 2026. Suppose instead Lot 2 had been bought on Exchange B on January 6, 2026, and the sale happened on November 3, 2026. Lot 2 would now be a covered security, and Exchange B would have to report its basis. Dana would likely receive two forms: one for the covered short-term units with box 1g filled and box 2 checked (Form 8949 box G), and one for the transferred-in Lot 1 with box 9 checked and no required basis (box K). The mixed outcome is normal and is exactly what the IRS's own example in the instructions shows: a customer who bought one asset in 2022 and again twice in 2026 and sold everything in 2027 can receive separate forms for the noncovered and covered units.

What Changes on Your 2026 Form

For 2026 sales, three changes show up on paper.

Basis appears for covered lots. Box 1g carries the broker's basis figure and box 2 is checked. If those lots need no adjustments and box 6 does not flag ordinary treatment, the Form 8949 instructions allow Exception 1: you can report the totals directly on Schedule D (line 1a for short-term, line 8a for long-term) without listing each transaction on Form 8949, as long as no adjustments to basis or gain type are needed.

Box 6 gets filled for covered lots. The broker determines short-term or long-term status for covered securities and may not mix both on the same form, so you may receive more forms than before.

Wrong broker basis gets a code, not an edit. If a broker reports basis that you know is wrong, the Form 8949 instructions tell you to enter the basis exactly as shown on the 1099-DA in column (e), then enter code B in column (f) and the correction in column (g). You do not change the broker's number; you adjust it, which leaves an audit trail that explains the difference.

Box 4 should still be empty for 2026 sales. Notice 2025-33 extended the backup withholding relief by one more year, so brokers are not required to backup withhold on any digital asset sale effected during calendar 2025 or 2026.

Stablecoins, NFTs and Lines That Look Aggregated

The instructions give brokers optional methods for two kinds of assets. Under the optional method for qualifying stablecoins, a broker may report a customer's designated stablecoin sales in aggregate, one form per stablecoin, and the Instructions for Form 1099-DA (2026) set a $10,000 de minimis level for the year. Under the optional method for specified NFTs, the comparable level is $600 for the year. When a broker uses these methods, it can leave dates and basis blank, enters the number of transactions in box 11b, and checks the reason in box 11a.

A qualifying stablecoin, for this purpose, has to meet three tests in the instructions: it is designed to track one government-issued currency one-for-one, it uses an effective stabilization mechanism, and it is generally accepted as payment by people other than the issuer. That is a reporting definition, not a statement about whether a particular coin is safe. The reserve and redemption questions that decide whether a stablecoin holds its dollar are covered in our comparison of how fiat-backed, crypto-collateralized and synthetic stablecoins work.

Selling a stablecoin for dollars usually produces a tiny gain or loss, but it is still a disposition of property. The aggregated line saves the broker paperwork; it does not take the sales off your return.

What the Form Will Not Show

Several categories of activity produce no 1099-DA line, and absence of a form is not absence of tax.

For transactions with no form at all, Form 8949 has boxes I and L. The IRS page is explicit that you report digital asset transactions whether or not they result in a taxable gain or loss.

Common Mistakes and Edge Cases

Treating box 1f as profit. It is proceeds. Profit requires basis. This is the single most expensive misreading, and the worked example above shows the size of the gap.

Subtracting the selling fee twice. Box 1f is already net of transaction costs under the instructions. If your software subtracts the fee again, your loss is overstated. Form 8949 code E exists for selling costs that are not already reflected on the form; it is not for costs the broker already netted.

Filing transferred-in lots as zero basis. A blank box 1g on a transferred-in lot is not the IRS saying your basis is zero. It is the broker saying it did not have to report basis. Your basis is whatever you can document from the original purchase.

Using boxes C and F. For digital assets, the 2025 Form 8949 instructions route lines to boxes G through L instead.

Expecting customer-provided data to appear as basis. Under the IRS FAQ, a broker can use the purchase dates you give it to decide which lots were sold, but it cannot report that basis on the form. Do not wait for a corrected form that will not come.

Ignoring a mismatch in units. If box 1c does not match your records, the cause is often a fee paid in the asset itself, a dust conversion, or a lot the broker relieved in a different order. The IRS FAQ notes, for example, that when a fee is paid with an extra unit of the same asset and the customer has not identified which unit, first in, first out determines which unit was used.

Assuming the form covers your whole year. If you used two exchanges and a self-custody wallet, you will have at most two sets of forms and a gap. The U.S. crypto tax rules explainer lays out every event that counts as a disposition, which is the list to check your forms against.

Panicking over a fraud-related loss. If the reason a balance moved was a scam or a drained wallet, that is not a sale your broker reported, and tax treatment of theft losses is narrow. Report the crime first through the channels in our guide on where to report a crypto scam and what evidence to send, then raise the tax question with a professional.

A Record-Keeping Checklist That Matches the Form

Because basis is your responsibility for most lines through at least the next few years, the most useful thing to build is a file that mirrors the fields the IRS will see. For each lot you hold, keep:

If an exchange you used has closed or restricted access, export what you can now. The failure modes covered in our exchange reserve risk checklist are also the moments when transaction history becomes hardest to retrieve.

Key Dates in One Place

For the full set of tax rules that sit behind this form, and the other countries the site covers, start from the crypto taxes hub. If you are reading this because a blank box 1g has stalled your return, the next practical step is to pull your oldest purchase records together before anything else; then work through the U.S. crypto tax rules explainer, whose list of taxable events is what you will check each Form 8949 line against.

Frequently Asked Questions

Why is the cost basis box blank on my 2025 Form 1099-DA?

Because brokers were not required to report basis for sales made in 2025. The 2025 Instructions for Form 1099-DA make proceeds mandatory and basis voluntary for that year. A blank box 1g means you supply the basis yourself on Form 8949, using box H for short-term lines and box K for long-term lines.

Will my 2026 Form 1099-DA show basis for everything I sold?

No. Mandatory basis reporting covers only covered securities: digital assets acquired after 2025 in a custodial account at that broker and held there until sold. Coins bought before 2026, or transferred in from another platform or wallet, are noncovered, and the broker may leave their basis blank and check box 9.

Do I need a corrected 1099-DA if the basis is missing?

Usually not. If the broker was not required to report basis, a blank box is correct reporting. You enter your documented basis in column (e) of Form 8949. A corrected form is the broker's remedy for errors in what it did report, such as wrong proceeds or units.

What if the basis my broker reported is wrong?

Under the Form 8949 instructions, you still enter the basis shown on the 1099-DA in column (e) for a box G or J line, then use code B in column (f) and put the correcting amount in column (g). That keeps your return consistent with what the IRS received while showing why your gain differs.

I didn't get a Form 1099-DA. Do I still have to report my crypto sales?

Yes. The IRS digital assets page says you report digital asset transactions whether or not they produce a gain or loss, and Form 8949 has dedicated boxes I (short-term) and L (long-term) for digital asset transactions with no 1099-DA. Self-custody swaps and staking, for example, generally do not generate the form.

Will moving coins between my own wallets show up on a 1099-DA?

A transfer to an account you own is not a sale, so it should not appear as proceeds. The IRS treats a transfer between wallets or accounts you own or control as a "No" answer on the digital asset question, unless you paid a fee in digital assets. A receiving broker may record the deposit in boxes 12a and 12b when you later sell those units.

Why does my stablecoin activity show up as a single line?

Brokers may use an optional aggregate method for qualifying stablecoins, with one form per stablecoin and the number of transactions in box 11b. The Instructions for Form 1099-DA (2026) attach a $10,000 annual de minimis level to that method. The individual sales are still dispositions you report.

Was there tax withheld from my crypto sales?

Generally not for 2025 or 2026. Notice 2024-56 waived backup withholding on digital asset sales effected in 2025, and Notice 2025-33 extended that relief to sales effected in 2026. If box 4 does show an amount, it is a credit you claim on your return.

Sources

CryptosEyes publishes general educational information, not tax, legal, or investment advice. Tax forms and IRS guidance change between filing seasons, and your situation may involve rules this page does not cover. Check the current IRS instructions for the year you are filing and consult a qualified tax professional before you file.