Crypto tax forms can be confusing because depending on the platforms/exchanges you used, there might be some overlapping information. This article will explain the differences between the forms and offer insight on how to best report your information. As always, your situation may vary and you should consult your CPA for specific guidance.

For most clients, this is the most important form to obtain and the reason they use crypto tax calculation software. TokenTax will compile all imported transaction data, calculate your gains/losses for the year(s) you have purchased plans, and with the accounting method of your choosing, and then put that information on a Form 8949.

Key points:

Form 1040 lists all income events within the tax year and is generally required to file. In order to obtain your crypto income events to report on Form 1040, you can use TokenTax to generate the Income Report. The Income Report includes transactions that our software considers income events, such as:

This is the form that reports information about all of your capital gains and losses. If you traded stocks or have losses carried forward from a prior year, this is where that information would be combined with your Form 8949. Key points:

This form is issued by trading platforms/brokers such as Robinhood, and it includes a breakdown of capital gains/losses incurred on that specific platform. Key points:

This form is similar to the Form 1099-B, but it reports income instead of capital gains. For more information about the difference between income and capital gains, please see our guide on how cryptocurrency is taxed. Key points:

In this situation you would want to include the transaction data in TokenTax, then report your capital gains/losses on a Form 8949. Your income would most likely be reported on your 1040 Schedule 1. Using a Form 8949/TokenTax income report instead of the 1099 provided by the trading platform would ensure that your cost basis is tracked correctly across exchanges.

For example, if you earned interest rewards on BlockFi and then later sold that crypto on Coinbase, your cost basis would be incorrect if you omitted the BlockFi data from TokenTax.

If you did not transfer crypto onto or off of an exchange that provided a Form 1099, you should use that form to file your taxes and omit the transaction information from TokenTax.

For more on crypto tax basics, visit our Crypto Tax Guide.

U.S. traders use the FBAR to report international financial accounts with over $10,000 at any point within the tax year to FinCEN. The FBAR report that can be generated with our software shows the highest balance held in each international account over the last year. It may also be useful for Canadian clients who need to fill out form T1135. The FBAR report is automatically included with the purchase of a VIP plan or higher-tier plan. Clients with a Basic or Premium plan who need an FBAR report may purchase one for $49.

If you are unsure whether you will need to generate an FBAR, please check your documents hub for a red triangle flag next to this report. This is an indication based on the data that has been imported that you will need one.

For more information on the FBAR, please see our article entitled “How To File a Crypto FBAR”, or reach out to our support team via chat or at [email protected].