Reporting & Filing
11. Where do I report cryptocurrency gains on my tax return?
Report crypto gains and losses on Form 8949 and summarize them on Schedule D.
12. What IRS forms are used for crypto taxes?
Common IRS forms include Form 8949, Schedule D, Schedule 1, and Schedule C (if self-employed in crypto).
13. Do I need to file Form 8949 for every crypto trade?
Yes, each crypto trade should be listed on Form 8949 unless you use a summary statement from tax software.
14. What is Schedule D used for in crypto tax reporting?
Schedule D summarizes your total capital gains and losses, including those from cryptocurrency.
15. How do I calculate my cost basis in crypto?
Your cost basis is the original purchase price plus fees. If you earned crypto, use the fair market value when received.
16. How do I report crypto mining income?
Mining rewards are reported as ordinary income on Schedule 1 or Schedule C, depending on whether it’s a hobby or business.
17. How do I report staking rewards?
Staking rewards count as income at the fair market value when received. Later sales are taxed as capital gains.
18. How do I report crypto earned from airdrops?
Airdrop rewards are taxable income at their market value when received, even if unsold.
19. Do I need to report crypto gifts received?
Receiving a crypto gift is not taxable, but selling the gift later may create capital gains tax.
20. What if I was paid in crypto for freelance work?
Crypto received as payment is taxed as ordinary income at fair market value on the day received.