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 using the accounting method of your choosing, and then put that information on a Form 8949. Key points:
Reports short-term capital gains/losses and long-term capital gains/losses
Compiled by the individual taxpayer, not an exchange or other trading platform
Can report gains/losses across multiple exchanges and wallets
Attached to the Schedule D on your tax filing
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:
Contains information about all of your capital gain/loss events, not just your crypto trades
Includes information that TokenTax does not have access to for crypto-only clients. TokenTax is unable to generate this form unless we are handling your full tax return. Your tax preparer is responsible for your Schedule D.
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:
Reports short term capital gains/losses and long term capital gains/losses
Issued by the broker or trading platform. TokenTax cannot issue a Form 1099-B — we're just a tax software company and we don't facilitate trades
Can report gains/losses only for the platform that issued the 1099-B
Generally attached to the Schedule D on your tax filing
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:
Reports income as opposed to capital gains/losses
Issued by the broker (TokenTax can't issue this form either)
Only reports income events on the platform that issued the Form 1099-MISC
What if a platform issues a Form 1099 but I transferred crypto to/from that platform?
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.