Kraken Form 1099-DA (Investor’s Guide 2026)

What Is Form 1099-DA?

Form 1099-DA is a new IRS form designed specifically for digital assets. Exchanges like Kraken use it to report gross proceeds from crypto sales directly to the IRS. The goal is to make it easier for the IRS to verify that investors are accurately reporting their crypto income.

For the 2025 tax year, Kraken and other exchanges are not required to report cost basis to the IRS. That means the burden is on you to ensure that you have accurate records of your gains and losses. 

Can I file my taxes with just Form 1099-DA? 

Form 1099-DA is an informational form. Even if you receive it, you are still required to report your capital gains and losses on Form 8949.

It's also worth noting that the information on Form 1099-DA can be inaccurate. Simply copying the numbers from the form without double-checking could cause you to overpay on your taxes.

Why is my Kraken 1099-DA missing cost basis? 

It’s important to remember that Form 1099-DA can have missing information about your cost basis. This is not the fault of Kraken. These issues happen due to the transferable nature of cryptocurrency. 

Remember, Kraken has no visibility into transactions made on other platforms. If you buy crypto on another exchange and transfer into Kraken, Kraken has no record of your original purchase price. 

In this example, your Form 1099-DA will show $95,000 in proceeds with no cost basis attached. Your actual gain is $65,000. However, if you don’t report your original cost basis, you could end up paying taxes on $95,000 of capital gain. 

Luckily, the fix for cost basis issues is simple. Because exchanges are not required to track cost basis, there’s no need to request a corrected Form 1099-DA in cases like these. Under current IRS guidelines, you can simply report the correct cost basis on Form 8949, provided that you have supporting documentation from Kraken or your crypto tax software.

Kraken Wallet and Ink activity not included on Form 1099-DA? 

Kraken's 1099-DA only covers activity on Kraken.com and Kraken Pro.

It does not cover Kraken Wallet or Ink. Those transactions will not appear on your Form 1099-DA, and you are required to keep track of taxable income from those applications on your own. 

Form 1099-DA vs. Form 1099-MISC 

Kraken and other exchanges issue both Form 1099-DA and Form 1099-MISC. It’s important to remember that these forms are not interchangeable and are designed to serve different purposes. 

While Form 1099-DA was designed for capital gains and losses, Form 1099-MISC was designed to report your ordinary income. This includes staking/interest rewards you received on Kraken. 

You will receive Form 1099-MISC if you earned at least $600 of ordinary income on Kraken.

Who receives a Kraken 1099-DA?

You'll receive a Form 1099-DA if you sold/traded/otherwise disposed of cryptocurrency on Kraken during 2025. There is no minimum dollar threshold, and even small sales are reported.

If you only bought and held cryptocurrency, you will not receive the form. 

When will I get my Kraken Form 1099-DA? 

According to Kraken’s website, Form 1099-DA will be issued to customers by March 13.

What information does Kraken report on Form 1099-DA? 

Information included on Form 1099-DA

Kraken's Form 1099-DA will show:

• The cryptocurrency you sold
• Transaction dates
• Gross proceeds 
• Your account and taxpayer information

Information not included on Form 1099-DA

Here's what won't be on the form:

• Cost basis for crypto you transferred in from another exchange or wallet
• Any activity on Kraken Wallet, Ink, or other DeFi applications
• Transactions on platforms outside of Kraken

Kraken cannot see transactions on other platforms, so it’s your responsibility to track your gains/losses across all of your wallets and exchanges. 

How to calculate your crypto gains

If your cost basis on Form 1099-DA is incorrect, don’t panic. To avoid overpaying on your taxes, you’ll need to provide an accurate record of your crypto transactions across wallets/exchanges to the IRS. 

Here’s how CoinLedger can help you calculate your gains and losses in minutes. 

Step 1: Import Your Transactions

Connect your Kraken account and any other wallets or exchanges to CoinLedger via API or CSV upload. CoinLedger supports hundreds of platforms, and you can import all of your transactions with just a few clicks. 

Step 2: Double-Check Your Transactions

Once your data is imported, review your transactions. CoinLedger automatically classifies your transactions based on type and flags missing cost basis and other errors before you download your report. 

Step 3: File Your Tax Return

And that’s it! Once you’re done, export your completed report to your accountant or your tax platform of choice. The whole process can be completed in less than an hour! 

What do I do if my proceeds don’t match my records? 

In some cases, the proceeds (the fair market value of your crypto at the time of disposal) reported on Kraken’s Form 1099-DA may not match the proceeds in your records and/or your crypto tax software. 

These minor discrepancies usually happen if you or your crypto tax software used a different price oracle to estimate the value of your crypto at the time of sale. It’s recommended that you follow the proceeds numbers on your Form 1099-DA when you report your taxes, as these are calculations that have been reported to the IRS. 

What do I do if my Kraken Form 1099-DA is completely wrong?

In some cases, your Form 1099-DA may contain grossly inaccurate information, such as transactions that never occurred or proceeds significantly different from your records.

Here are some steps you can take:

1. Contact Kraken support: Request a corrected 1099-DA and document your attempts to resolve the issue. This demonstrates good faith if the IRS investigates.
2. Don't ignore it: Calculate your actual tax liability using complete records from Kraken and all of your other wallets and exchanges.
3. Consider filing an extension: A tax extension gives you more time to obtain a corrected form.
4. File with accurate information: Report your corrected figures on Form 8949. You can attach a brief explanation noting the error and the steps you took to address it.

Note: If your cost basis is reported wrong, there's no need to request a corrected form. Simply report your accurate cost basis on Form 8949.

What cost basis method can you use?

Kraken allows you to select cost basis methods like FIFO, LIFO, and HIFO. 

When you calculate your taxes, you should use the same method that you chose on your Kraken account. Remember, these are the numbers used to calculate your proceeds on Form 1099-DA. Using a different method can lead to significantly different tax calculations. 

Can I get a warning letter for Form 1099-DA?

Kraken sends a copy of your Form 1099-DA directly to the IRS.

 If there’s a major discrepancy between the proceeds you report and the proceeds on your Form 1099-DA, you’ll likely receive an automated warning letter from the IRS. This could escalate to penalties, fines, or even an audit.

Get started with CoinLedger 

CoinLedger connects Kraken and hundreds of other exchanges in minutes, giving you a complete record of your gains and losses. Join more than 700,000 investors who use CoinLedger to take the stress out of tax season.

 Get started with a free account today.