Coinbase 1099 is a form that used to be issued by the site for its users. However, Form 1099 can no longer be received through Coinbase, starting from the 2020 tax season. As a user, you need to know what Form 1099 is, where you can get it, and how you should organize your records of crypto transactions to stay on top of your taxes.
Read on to learn about Form 1099 on Coinbase and what you should do to remain tax-compliant in 2020. Remember that crypto is currency. Even though it seems off the grid, it needs to be accounted for at the end of the year.
What is a Coinbase 1099 Form?
Form 1099 applies to taxes to report your transactions to third parties whose platforms you used the previous year. In this case, Coinbase needs to have records of all your trading on its platform. Form 1099 does not record profits. It simply lists the transactions in terms of gross proceeds.
What are gross proceeds? They represent the total amount traded in crypto transactions on Coinbase through your account. This must be calculated before adjustments and fees that reflect your overall “gains,” positive or negative. Gross proceeds simply refer to the amount that passed between you and other traders on Coinbase.
Will You Receive a 1099 from Coinbase?
As of the 2020 tax season, Coinbase has changed eligibility for Form 1099. Coinbase, Coinbase Pro, and Coinbase Prime users need to check their new eligibility requirements to receive the form from Coinbase for tax purposes. It’s worth noting that Coinbase users outside of the United States will not receive the form under any circumstances and have to rely on their account history to accurately record their transactions for tax purposes according to the rules of their region.
In order to receive Form 1099, you have to be an account-holder on Coinbase in the US or US tax-compliant areas. You also have to complete transactions in cryptocurrency trading on the platform in the previous year, equal to or exceeding $600 worth.
This includes currency awarded through Coinbase Earn, Staking, or USDC Rewards. So long as the amount you earned through trading totals at least $600, you could be eligible for Form 1099.
Please note that there are several versions of Form 1099. Coinbase no longer issues 1099-K or 1099-B for its traders as of the 2020 season. The only form they still issue is 1099-MISC, probably to streamline their tax services.
Even if you didn’t receive a form, your crypto trades must still be reported to the IRS. Download your transaction history from Coinbase to view and file your statement so you can keep accurate records of your gross proceeds on the site.
The Takeaway for Coinbase Users
Coinbase 1099 no longer pops up in your account automatically. You have to be eligible and file for the form. Even if you don’t receive one, you need to make sure to use your account history to download an invoice so you can file your cryptocurrency transactions properly this tax season. Coinbase provides the info you need on their site so long as you access your records on your account at the end of the year.