Coinbase 1099 Form - What to Do With Your Coinbase Tax Documents

Whether you're a long-time Coinbase user or are new to the game, it's important to understand what to do with your Coinbase tax documents. After all, you've probably received a few IRS letters and notices, and if you're self-employed you may even have to file taxes on your crypto earnings. If you don't, you could face fines or jail time. You might even need to hire a tax expert to help you navigate the tax code.

If you're a Coinbase user, you can see how much of your activity is taxable in the Coinbase "tax center." The center is divided into taxable activities by date, including short and long-term gains and losses, and gains and losses on trades. The center also includes raw transaction history CSVs and a summary of your taxable activities. 

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If you own a Coinbase account and received over $600 in crypto profits in the past year, you will receive a Form 1099-MISC. This document will report your ordinary income from Coinbase, which is comparable to interest you may have earned on lending or similar products. It will also report a summation of all of your Coinbase trades.

The Coinbase tax center was created to help US Coinbase users better understand the taxable activity in their accounts. By doing so, they can learn how to report their gains and losses and determine their tax liability. The Coinbase Tax Resource Center also provides a helpful 1099-MISC Forms help article.

Also Read:- How To Transfer Money from Coinbase to Binance

While the Coinbase tax center is a step in the right direction, the company has also recently partnered with CoinTracker, a service that offers crypto tax software. The software allows users to easily track their crypto holdings and generate income tax reports. The software also syncs with Coinbase through an API. This service has been criticized for not providing all the information users need to file taxes. It is also time-consuming, especially if you're just tracking a small taxable gain.

If you're a Coinbase customer, you should be receiving a Form 1099-MISC in 2020. If you're not, you won't receive any other tax documents from Coinbase. You should contact Coinbase support to ask if you qualify for the form. The company will let you know if you do, but they won't provide all of the information you need. If you do receive the form, it's important to read it carefully to make sure you understand what it means.

In addition to the Form 1099-MISC, Coinbase will also be issuing new tax forms in 2020. The forms will only be issued to users who have received over $600 in crypto in the past year. The company will no longer issue 1099-Ks after 2020. However, if you've received a form, you should consult with a tax expert to determine what it means.

( Also Read:- How To Get Crypto From Robinhood To Wallet )

It's also important to understand that even though you may not have received a Form 1099-K, you still have to report your gains and losses to the IRS. It's also important to understand how the IRS taxes crypto differently depending on the length of time you own the digital currency.