Crypto.com is a centralized crypto exchange based in the US, so certain transaction information must be reported to the IRS. This is done through Form 1099. Crypto.com issued Forms 1099-K to investors with 200+ transactions totaling $20,000 or more for the 2023 tax year.
When an exchange like Crypto.com issues Form 1099, they send one copy to the taxpayer and one to the IRS. If you receive a 1099 from Crypto.com or any exchange, you must report crypto on your taxes. In fact, you must report your transactions regardless of whether you receive this form at all.
Does Crypto.com report to the Internal Revenue Service (IRS)?
Crypto.com (a centralized exchange based in the US) must legally report certain transaction information to the IRS. This reporting is done through Form 1099, and users receiving this form must report their crypto activities on their taxes.
For the 2023 tax year, Crypto.com issued Forms 1099-K to investors with 200 or more transactions totaling $20,000. Additionally, Forms 1099-MISC were sent to U.S. traders earning over $600 from staking or rewards. The Biden administration has lowered the 1099-K threshold to trade volumes over $600 starting in 2022.
When an exchange like Crypto.com issues a Form 1099, they send one copy to the user and one to the IRS. You must report crypto on your taxes if you receive a 1099 from Crypto.com or any exchange. For more detailed information about crypto 1099s, check out our blog “What is a Crypto 1099?”
Do I have to pay taxes on my Crypto.com transactions?
Yes, taxes apply to all transactions on Crypto.com. The IRS requires taxpayers to report cryptocurrency activities. Crypto.com issues Form 1099, which requires users to report their crypto-related income and transactions when filing taxes.
US taxpayers are obligated to report cryptocurrency transactions to the IRS. Crypto.com, like other exchanges, assists in this process by providing users with Form 1099, which must be included in tax filings. Complying with IRS regulations is essential to avoid any legal complications related to cryptocurrency transactions.
It is highly recommended that you use a trusted crypto tax service like TokenTax for accurate tax reporting and compliance. At TokenTax, we can help you navigate the complexities of cryptocurrency taxation, ensuring that all your transactions are reported correctly and that you take advantage of any potential tax-saving opportunities.
Schedule a FREE crypto tax consultation
How do I lower my Crypto.com taxes?
Lowering your Crypto.com taxes involves strategic planning and careful record-keeping. One effective method is to take advantage of tax-loss harvesting, which involves selling assets at a loss to offset gains. Additionally, holding crypto for more than a year can result in long-term capital gains tax rates, which are typically lower than short-term crypto capital gains rates.
Learn more about how to reduce your crypto taxes.