Got crypto? A new tax form just hit the market harder than the NFT drop-off in 2021. Starting for the 2025 tax year — which you’ll be filing in the next few weeks or so — you may receive the new Form 1099-DA if you traded crypto or other digital assets.
While brokers and crypto exchanges are required to send you this form, understanding the information it provides and properly reporting it on your taxes is completely your responsibility.
Form 1099-DA, also known as the “Digital Asset Proceeds From Broker Transactions” form, is the latest crypto tax form from the IRS. While it has a fancy title, it’s basically a form that lists any proceeds you received from crypto transactions handled by your broker or exchange.
However, this form is informational only. You’ll need the information it provides to complete Form 8949 + Schedule D in your tax return.
Your brokerage or exchange may provide you with a Form 1099-DA if you completed any of the following transactions:
In other words, if you did anything with digital assets in 2025 that resulted in proceeds, you may receive a Form 1099-DA. Your crypto exchange is also required to send this form to the IRS.
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Summ helps simplify tax reporting and Form 1099-DA by organizing your crypto transactions and generating IRS-ready reports.
Form 1099-DA includes a lot of key details about your digital transactions throughout the year, including:
But the form has some serious limits. For the 2025 tax year, here’s what your form won’t provide:
That first bullet is a zinger. Most traders work across several platforms and wallets. And even if you do all your trading on one exchange, you’ll still need to calculate the cost basis to ensure you’re not overpaying on your taxes.
While the proceeds shown on your Form 1099-DA might be subject to tax, you may not owe taxes on the full amount. The IRS only taxes your capital gains, not your proceeds.
For example, if you bought $1,000 worth of bitcoin and later sold it for $3,000, your capital gain is only $2,000. That’s the amount you’ll get taxed on, not the full $3,000.
However, using the same example, if you received a Form 1099-DA because of this transaction, it would report proceeds of $3,000. It doesn’t account for what you originally paid for the asset.
When filing your return, it’s up to you or your tax preparer to factor in the original purchase cost, plus any fees or commissions you paid. And if you’ve completed multiple transactions through the year, compiling that data on your own can be overwhelming.
Since Form 1099-DA leaves out some key information, many traders might benefit from crypto tax software to fill the gaps and avoid overpaying on their return.
For example, Summ (formerly Crypto Tax Calculator) provides investors with tools that:
If your crypto activity expands across multiple platforms and wallets, and totals dozens or hundreds of transactions in a year, crypto tax software might save you a significant amount of time (and even money) this tax season.
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