Coinbase, a popular cryptocurrency exchange platform in the United States, issues 1099 forms to its users who have engaged in certain types of transactions that are reportable to the Internal Revenue Service (IRS). The 1099 form is used to report income received from sources other than an employer, such as freelance work or investments. If you have used Coinbase to trade cryptocurrency, it is important to understand how to obtain your 1099 form.
Step 1: Determine if You Need a 1099 Form
Before you can request a 1099 form from Coinbase, you need to determine if you are eligible for one. Coinbase issues two types of 1099 forms — Form 1099-K and Form 1099-MISC.
Form 1099-K: Coinbase issues a 1099-K to users who have engaged in at least 200 transactions and whose total sales exceed $20,000 during the tax year. This includes all transactions on the Coinbase platform, including buys, sells, sends, and receives.
Form 1099-MISC: Coinbase issues a 1099-MISC to users who have earned at least $600 in cryptocurrency from Coinbase Earn or Coinbase Rewards.
If you have not met either of these thresholds, you will not receive a 1099 form from Coinbase.
Step 2: Log In to Your Coinbase Account
To obtain your 1099 form, you first need to log in to your Coinbase account. Once you are logged in, navigate to the “Settings” section of your account.
Step 3: Request Your 1099 Form
Within the “Settings” section, click on the “Financial Information” tab. Here, you will see a link to “Download 1099.” Click on this link to begin the process of requesting your 1099 form. You may be required to verify your identity before you can download your form.
Step 4: Review Your 1099 Form
After you have downloaded your 1099 form, review it carefully to ensure that all of the information is accurate. Check that your name and address are correct, and compare the information on the form to your own records to make sure that it matches.
If you find any errors on your 1099 form, contact Coinbase customer support as soon as possible to have the issue resolved.
Step 5: File Your Taxes
Once you have received your 1099 form from Coinbase and verified that all of the information is accurate, you can use it to file your taxes. The information on your 1099 form will need to be included in your tax return for the year in which the transactions occurred.
It is important to note that even if you do not receive a 1099 form from Coinbase, you are still responsible for reporting any taxable income from cryptocurrency transactions on your tax return. Keep accurate records of all transactions and consult with a tax professional if you have any questions about how to report your cryptocurrency earnings.
In conclusion, obtaining a 1099 form from Coinbase is a straightforward process that involves logging in to your account and requesting the form from the “Financial Information” tab. Once you have received your form, review it carefully and use the information to file your taxes accurately. Remember, even if you do not receive a 1099 form from Coinbase, you are still responsible for reporting any taxable income from cryptocurrency transactions on your tax return.
