This article applies to US customers only.
Your CoinTracker tax report and your 1099 forms serve different purposes, which is why the numbers won't match. Understanding what each document reports can help you file with confidence.
1099 forms
- Forms like 1099-K, 1099-B, and 1099-DA are issued by broker-dealers and crypto exchanges such as Coinbase, Gemini, and Robinhood. These forms report your aggregate transaction volume to you and the IRS without calculating gains or losses.
- Some platforms also issue Form 1099-MISC to report crypto income from activities like staking rewards, token incentives, and certain airdrop distributions. Payers are generally required to issue this form when payments to you total $600 or more during the tax year.
Important: Income below $600 can still be taxable, even if you don't receive a form. CoinTracker helps you track this income throughout the year so you have a complete record at tax time.
CoinTracker Tax Reports
- CoinTracker, on the other hand, generates an IRS Form 8949 report which focuses on calculating your capital gains or losses from cryptocurrency transactions.
- CoinTracker also calculates your income totals using the transactions already synced to your account, so you do not need to upload a 1099-MISC into CoinTracker.
- It's tailored to meet the requirements for your tax filings, providing a detailed account of the profit or loss from each transaction, and the income you received.
The key difference is in the type of information each document provides. The 1099 forms report transaction volumes, while CoinTracker reports show your capital gains or losses, and the income you received. This is why you’ll notice a mismatch—they serve different purposes. The 1099-K or 1099-B helps the IRS identify high transaction users, but these numbers are not used for your tax filing. For that, you need your capital gains and losses, which CoinTracker calculates.
Disclaimer: CoinTracker is provided for informational purposes and is not intended as tax, audit, accounting, investment, financial, or legal advice. For financial, tax, or legal advice, please consult your own professional. See our full disclaimer.