Key takeaways
- The IRS can trace Phantom transactions through blockchain analysis. The agency can link your wallet to your identity if you move funds between Phantom and centralized exchanges.
- Starting in 2026, the IRS will have more visibility into crypto transactions than ever before through Form 1099-DA.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Phantom’s tax reporting policies within United States. We’ll also break down a simple way to report your Phantom taxes in minutes.
What is Phantom Wallet?
Phantom is a Solana-focused crypto wallet available on mobile and as a browser extension. Phantom allows you to hold SOL and connect to decentralized applications built on Solana and Ethereum. Â
Because it’s non-custodial, Phantom does not hold your funds or require Know Your Customer (KYC) verification. However, if you buy crypto through Phantom using a card or bank account, the third-party service provider may ask you to verify your identity.
While Phantom doesn’t report to the IRS, your activity can likely be tracked if you transfer to/from a centralized exchange.
Does Phantom Wallet report to the IRS?
No. Phantom does not share data with the IRS or issue tax forms.
That said, it’s likely that the IRS can track your Phantom wallet transactions.
- Blockchain analytics: Every Phantom transaction is public on the Solana blockchain. The IRS works with blockchain analytics firms to connect wallet addresses to your identity. If you move crypto between Phantom and centralized exchange like Coinbase or Kraken, the IRS can match that transfer to you based on exchange records. ‍
- 1099-DA: Starting with the 2025 tax year (forms sent in 2026), all US brokers must issue Form 1099-DA, reporting gross proceeds from digital asset sales. While these rules won't apply to Phantom, it's likely that this will give the IRS more information to identify 'anonymous' wallets.
If I use Phantom Wallet in the US, do I owe taxes?
Yes. Crypto activity on Phantom and other wallets is subject to tax.
- Capital gains: Selling, swapping, or spending crypto is a taxable disposal. You’ll owe capital gains tax if the value of your crypto has increased since you acquired it.
- Income: Staking rewards, airdrops, and DeFi yields received through Phantom are taxed as ordinary income based on their fair market value at the time of receipt.
Moving crypto between your own wallets (for example, from Coinbase to Phantom) is not a taxable event.
Does Phantom Wallet have KYC?
No. You can download and start using Phantom without providing KYC information.Â
Is Phantom Wallet legal in the US?
Yes. Phantom is legal to use in the United States.
You are required to report your taxable income from cryptocurrency on Phantom and other platforms.
How do I reduce my Phantom Wallet taxes in the US?
While there’s no way to legally evade your taxes, here are two steps you can take to lower your tax bill:
- Tax-loss harvesting: By selling crypto at a loss, you can offset gains and reduce taxable income. Crypto losses can offset $3,000 of income and an unlimited amount of capital gains for the year. Additional losses can be rolled over to future tax years. ‍
- Using crypto tax software: Crypto tax software like CoinLedger automatically tracks your transactions on Phantom and other platforms and identifies your biggest tax-saving opportunities.
Looking for a simple way to report your Phantom taxes? With CoinLedger, you can import your Phantom transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Phantom and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.
You can get started with a free preview report today.
How CoinLedger can help
Keeping track of every taxable event on Phantom Wallet can be overwhelming. Here’s how CoinLedger can help:Â
- Import transactions directly from Phantom and hundreds of other wallets and exchanges.
- Track your capital gains and ordinary income in one place.
- Generate ready-to-file IRS tax reports in minutes.
Get started with CoinLedger, the platform trusted by 700,000+ investors.
