Coinbase Stopped Issuing Form 1099-K: What To Do?

How Do I Report Crypto Income on My Taxes?

This is a question that we have all been asking ourselves. There is an increasing interest in cryptocurrencies, and it seems everyone wants to know how to report crypto income on their taxes.

Unfortunately, there isn't a simple answer. You need to consider a number of factors when deciding whether or not to include crypto income in your taxes.

First, you have to determine if you have any taxable income from trading or investing in cryptocurrencies. If so, you need to determine how much of that income will be considered taxable.

If you don't currently have taxable income from trading or investing in cryptocurrencies, then you can exclude any of your gains from those investments from being included as part of your taxable income for the year.

Next, you need to determine whether or not any losses incurred during the year are deductible against other types of income. Most commonly, this will be labeled as a capital loss. If so, those losses can also be used against other types of deductions, such as property taxes or casualty losses.

Finally, you will specify all the details in your tax returns and submit them to the IRS with transaction proofs. You should consult a professional tax consultant and take advice on the whole matter. Yoke Tax offers free one hour consultations with tax pros who have over 20 years of experience.

What is Form 1099-K?

Form 1099-K is a form that is used to report the payments made to you from your employer or investor. It's similar to a W-2, except it includes only payments made during the year rather than including all of the income and deductions for that year. This means that Form 1099-K will include any information about non-employee compensation or other income you received during the year.

Unlike a W-2, Form 1099-K does not require you to report your Social Security number on it. However, if you have ever had an SSN assigned to you by the Internal Revenue Service (IRS), then all your wages will be reported on Form W-2 regardless of whether an employer or another person pays them.

Form 1099-K is a good way to keep track of your income and help you avoid trouble with the IRS.

Does Coinbase Issue 1099-K Forms?

Coinbase does not issue 1099-K forms. However, Coinbase regularly provides tax information to the IRS and other government agencies.

Taxes are often due by the end of April for many people. If you have been paid with cryptocurrency, you may be able to claim a tax deduction for the value of your cryptocurrency loss this year.

The IRS requires that Coinbase issue 1099-K forms for all U.S.-based customers who:

• 
  Receive more than $20,000 in net income or gross revenue from the exchange of virtual currency during a calendar year (and at least 300 days of service)
• Receive more than $20,000 in investment income during a calendar year and at least 300 days of service.
• Received an equal amount in 200 transactions during a calendar year.

Does Coinbase issue 1099 forms today?

Coinbase no longer issues 1099 forms.

The IRS requires that Coinbase and other digital currency exchanges report income earned through the sale of virtual currency. Coinbase doesn't have an automated procedure to provide a 1099 form system in place.

The company does, however, offer an information portal where you can find out how much money you have made selling bitcoin or cryptocurrencies for yourself or others, and it would be helpful if you are paying taxes.

The IRS has said that it's working on implementing a new system that will enable digital currency exchanges to report income earned from selling cryptocurrency. This has been ironed out in our 2022 Crypto Tax Guide.

What is Coinbase's Tax Reporting Threshold?

Coinbase's tax reporting threshold is $600.

Coinbase will only report transactions above this amount to the customer.

The amount of money you can spend in a single day before Coinbase starts reporting to the IRS depends on your country's tax code. Some states have a higher tax ratio, while others have a lower one. So, it all depends on your geographical location.

(Note that payment apps like Venmo also have a $600 tax reporting threshold. Read more here.)

File Your Coinbase Taxes Today

If you are looking to file taxes on your crypto earnings, you will need a professional tax consultant to help you smoothly through the process. Book a free one hour consultation with Yoke Tax today.