How to Report Crypto on Taxes: Form 8949 & Schedule D Steps

Laptop showing financial charts — Form 8949 and Schedule D

Short answer: To report crypto on US taxes: first gather transaction history from every exchange and wallet. Answer the digital asset question on Form 1040. List each sale, swap or spend on Form 8949 with dates, proceeds, cost basis and gain or loss. Totals then flow to Schedule D, where short- and long-term results are netted. Report staking, mining and pay as income separately, and reconcile any Form 1099-DA before filing.

Last updated: November 7, 2026. Facts checked against IRS.gov.

Step 1 — What do I need to gather first?

Download transaction history from every exchange and wallet, including closed accounts. Missing history is the #1 cause of wrong returns.

Step 2 — How do I answer the Form 1040 question?

Form 1040 asks whether you received, sold, exchanged, or disposed of a digital asset. Answer ‘Yes’ if you did any of those; buying-and-holding alone can be ‘No’.

Step 3 — What goes on Form 8949?

List each disposal: what you sold, dates acquired and sold, proceeds, cost basis, and gain or loss. Use the correct box — e.g. Box C/F for sales not reported on a 1099, and adjust codes where 1099-DA basis is missing or wrong.

Step 4 — What does Schedule D do?

Totals from 8949 flow here, where short- and long-term results are netted and the preferential long-term rate is applied.

Step 5 — Where does crypto income go?

Mining, staking, wages, and airdrops go on Schedule 1, Schedule C (if it’s a business), or your W-2 — not on 8949 until you later sell those coins. Attach everything, keep copies for at least 3 years (6 is safer), and reconcile any 1099-DA you received.

Frequently asked questions

How do I report crypto on taxes?

Gather history from every exchange and wallet; answer the Form 1040 digital asset question; list each disposal on Form 8949; let totals flow to Schedule D; and report mining, staking, wages and airdrops as income separately.

What goes on Form 8949 vs Schedule D?

Form 8949 lists each disposal — what you sold, dates acquired and sold, proceeds, cost basis, and gain or loss. Schedule D takes Form 8949 totals, nets short- and long-term results, and applies the preferential long-term rate.

Do I report crypto I only bought?

No tax is due on buying and holding alone; but if you received, sold, exchanged or disposed of a digital asset you answer ‘Yes’ to the Form 1040 digital asset question.

How long should I keep crypto tax records?

Keep copies for at least 3 years — 6 is safer — and reconcile any 1099-DA you received before filing.

Related guides

Sources

IRS Instructions for Form 8949
Schedule D instructions
IRS Digital Assets FAQ
Primary guidance: IRS.gov and IRS digital assets guidance

This guide is general education only — not tax, legal or financial advice. Verify with the source authority and a qualified professional before filing.

How to Report Crypto on Your Taxes: Form 8949 & Schedule D, Step by Step