Form 1099-DA, Digital Asset Proceeds From Broker Transactions
Form 1099-DA, Digital Asset Proceeds From Broker Transactions, is used by brokers to report proceeds from the sale of digital assets, such as cryptocurrency and NFTs.
Who Sends Form 1099-DA?
Brokers are required to report gross proceeds from the sale or disposition of digital assets to both the taxpayer and the IRS on Form 1099-DA.
For the 2025 tax year, this generally applies to U.S. brokers. Those using a foreign broker may not receive a 1099-DA.
Who Receives Form 1099-DA?
You may receive a 1099-DA if you used a broker to dispose, sell, exchange, or transfer ownership of digital assets:
- For another digital asset
- For currency (foreign or domestic)
- In exchange for goods, services, or property
- To pay for broker transaction costs with digital assets
Even if you do not receive a 1099-DA, these transactions must be reported on your tax return. You won’t receive a 1099-DA if you moved assets between wallets, purchased new assets, or received a digital asset as a gift.
Understanding Your 1099-DA
Your 1099-DA is fairly straightforward. On the left side, you’ll find the filer’s (issuer) information, including the name, address, tax identification number (TIN), and telephone number. Below that, you’ll find your (recipient) information. Review it to make sure everything is correct.
Box 1a – Code for digital asset. This is the 9-character digital token identifier issued by the Digital Token Identifier Foundation (DTIF) or stablecoin (if applicable). If the asset is not registered, it will be assigned the number 999999999, which is also used for NFTs.
Box 1b – Name of digital asset. This is the full name of the digital asset that matches the DTIF registration or qualifying stablecoin. For NTFs, it should be “Specified NFTs.”
Box 1c – Number of units. The number of digital units sold, exchanged, or disposed. For stablecoin or NFTs, it’s the aggregate number of units.
Box 1d – Date acquired. The acquisition date of the digital asset sold. If acquired on multiple dates or unknown, this should be blank.
Box 1e – Date sold or disposed. For stablecoin or NFTs, this may be blank. Otherwise, this is the date the digital asset sold (MM/DD/YYYY format).
Box 1f – Proceeds. The gross proceeds from the sale of digital assets. For losses, this will be shown as a negative by enclosing the amount in parentheses.
Box 1g – Cost or other basis. The adjusted basis of any digital asset sold, unless the digital asset is not a covered security, and Box 9 is checked. For stablecoins and NFTs, these may be blank.
Box 1h – Accrued market discount. The amount of accrued market discount on digital assets that are covered securities and also debt instruments for federal income tax purposes.
Box 1i – Wash sale loss disallowed. For tokenized securities treated as stock or securities under section 1091, the amount of the disallowed loss under section 1091 is reported here.
Box 2 – Check if basis reported to IRS. This box should be checked if Box 9 is not checked, or Box 9 is checked and the basis is reported in Box 1g.
Box 3a – Reported to IRS. If gross proceeds in Box 1f are reduced by options premiums, “net proceeds” should be checked. Otherwise, “gross proceeds” should be checked.
Box 3b – Check if proceeds from. If proceeds are from a qualified opportunity fund (QOF), this box should be checked.
Box 4 – Federal income tax withheld. The amount of backup withholding collected.
Box 5 – Check if loss is not allowed based on amount in 1f. If loss is not allowed, this box will be checked.
Box 6 – Gain or loss. Reports whether the gain or loss was ordinary, short-term, or long-term.
Box 7 – Check if 1f is only cash. If no cash was paid in the transaction, the box will not be checked.
Box 8 – Check if broker relied on customer-provided acquisition information. This will be checked if the broker relied on information from you.
Box 9 – Check if digital asset is a noncovered security. This box will be checked if reporting the sale of a noncovered security. It will be unchecked if reporting the sale of a covered security.
Box 10 – Blank.
Box 11a – Check if gross proceeds reported in 1f is an aggregate amount. If reporting proceeds for stablecoin or NFTs, the appropriate box should be checked.
Box 11b – If 11a checked, number of transactions. Used for reporting the sale of stablecoin or NFTs.
Box 11c – Aggregate gross proceeds of specified NFTs attributable to first sales by a creator or minter. This number should not be entered in Box 1f.
Box 12a – Number of units transferred in. The number of units (18 decimal places) transferred into a custodial account. For sales of stablecoin or NFTs, this is left blank.
Box 12b – If transferred in, provide transfer-in date. This is left blank for NFTs, stablecoin, or if there were various transfer dates.
Box 13 – Blank.
Box 14 – State name. State of residence.
Box 15 – State identification number. Filer’s (issuer) state identification number.
Box 16 – State tax withheld. If state taxes were withheld, they should be entered here.
What to Do If Your 1099-DA is Inaccurate or You Should Not Have Received One
If you receive Form 1099-DA by mistake, you should contact the issuer (filer) immediately. Do not wait to file your taxes. It’s also a good idea to keep a copy of the form and all correspondence for your records.
If your 1099-DA has inaccurate information, reach out to the issuer (filer) and request a corrected form. Do not contact the IRS; they cannot make changes to your 1099-DA. Keep copies of the original and corrected form, as well as any correspondence with the issuer. Use the information on the corrected form to file your tax return and schedules.
Need Help?
If you need assistance with a tax matter, Tax Defense Network offers free consultations. Just call 855-476-6920 to learn more or to get a quote.
