If you invest in crypto, there are major updates to taxes on cryptocurrency that you need to be aware of. While cryptocurrency has existed for over a decade, filing with the IRS has generally been and complex and challenging process. 

But that’s all changing this year in 2025. With the new Form 1099-DA, there is a more formal way for brokers and traders to keep track of their crypto transactions. In this article, we’ll share everything about this new form and what you need to do to prepare for the upcoming tax season, as well as how you can file all your taxes with H&R Block!

Paying Taxes on Cryptocurrency

Just like your other stocks and assets, cryptocurrency transactions are also subject to taxation in the United States. However, reporting crypto-related gains and losses has been difficult. That’s because the IRS classified digital assets as property, which meant transactions had to be manually tracked.

To make things even more confusing, most traders or investors didn’t receive any official tax forms reporting their transactions. For this reason, they had to rely on their own records, which could lead to inconsistent reporting and errors in their filings.

In order to simplify things, the IRS has introduced the 1099-DA form. As a new standardized form, traders and investors can now keep track of their cryptocurrency transactions. Tax payers should still keep good records of all their transactions in order to ensure they report everything.

If you want assistance with your cryptocurrency tax filings, turn to H&R Block. Their DIY online tool guides you through filing your taxes, or you can work with one of their tax pros!

What Is the 1099-DA?

The 1099-DA (Digital Asset Proceeds From Broker Transactions) is a new form that will be used for cryptocurrency filing. It will also apply to non-fungible tokens (NFTs) and other blockchain assets.

If you have these assets, you will receive a 1099-DA from your broker, crypto exchange platform, or payment processor if you have sold or exchanged assets (you won’t get them for simply having them).The form will include the following information to help you with your tax filing:

• Digital asset acquisition date
• Gross proceeds from any sales you’ve made
• Cost basis of how much you’ve paid (if available)
• Gains and losses from your transactions

Who Needs to File the 1099-DA?

Digital asset brokers are required to submit the 1099-DA to the IRS. If you sell or exchange digital assets like cryptocurrency, then you will receive a 1099-DA from your broker or platform. This form will include all the details of your activity and the proceeds you’ve earned over the year.

Unfortunately, however, there isn’t yet a consolidated reporting form for all of your cryptocurrency transactions. So, you’ll get a form for every transaction you’ve made. Once you get these you will use the information to to fill out your annual tax return. Not only does it ensure accurate reporting to the IRS, but it also provides a clear summary of your transactions. That means you will be able to compare your records with forms you receive to ensure you accurately report every transaction.

When Will I Get a 1099-DA?

The 1099-DA form went into effect January 1, 2025. This means that it will apply to any transactions and trades made during the 2025 year. Your broker or payment platform will send out your 1099-DA by the end of January 31, 2026 to file your 2025 taxes.

How to Pay Taxes on Cryptocurrency

Because the 1099-DA form is new, tax payers may have questions on how to pay taxes on cryptocurrency. Good news: the rules for reporting and paying taxes on digital asset transactions haven’t changed. But we’ll share a few tips on what to do to ensure that everything is accurately reported on your tax form.

First of all, you’ll want to keep track of your own transactions. Although the 1099-DA simplifies the reporting process, its always a good idea to keep your own records. Make sure to note things like purchase dates, sale prices, fees, and transfers.Then, once you get this from your broker, compare it with your own reporting to ensure it’s correct.

If you’re still unsure about filing your taxes on your own, then there are services that can help. Using a tax filing software like H&R Block can make it easier for you to file your crypto reporting (or any other forms, for that matter). You’ll be able to import your 1099-DA form directly into their tool to ensure that everything is entered correctly. You can also get live help from a tax expert if you have any questions or concerns when filing.

But if you prefer, you can leave the work to an H&R Block tax professional instead. With tax office locations in every state (and abroad) you can schedule a one-on-one appointment to get started. Or you can simply drop off your files and let them handle the rest.

While the process for filing taxes on cryptocurrency hasn’t changed, the new 1099-DA will simplify reporting and reduce confusion. However, it’s still important to double-check your records and to work with a tax professional if needed (and don’t forget to check out H&R Block no matter which way you plan to file). This is the best way to stay compliant and to ensure you’re getting the maximum refund from the IRS.