How to Fill Out Form 8949 for Cryptocurrency

In this guide, we’ll share everything you need to know about Form 8949 before you get started filing your taxes. We’ll also break down step-by-step instructions on how to report your cryptocurrency disposals on your tax return. 

What tax form should I use to report cryptocurrency and NFTs? 

In the United States, crypto is taxed as income and capital gains. How your crypto is taxed and reported depends on the nature of your income. 

Form 8949 for crypto disposals: If you dispose of crypto-assets, such as selling them, trading them away, or using them to make a purchase, you should report your disposal on Form 8949. 

‍Schedule 1 for crypto income: If you’re an individual taxpayer who earned crypto-assets as income or rewards, such as staking and mining rewards, you should report your earnings as income on Schedule 1 as an individual taxpayer.

Who has to fill out Form 8949 for cryptocurrency? 

You should report your cryptocurrency on Form 8949 in the following situations: 

• I made a profit while selling/trading cryptocurrency/NFTs  
• I made a loss while selling/trading cryptocurrency/NFTs 
• I used cryptocurrency to make a purchase

One exception to these rules is if you’re buying and selling cryptocurrency in a self-directed crypto IRA. These accounts are tax-advantaged and as a result, these trades should not be reported on Form 8949. 

Can I just copy my capital gains and losses from Form 1099-DA? 

In 2026, crypto investors will receive Form 1099-DA, a form designed to report your capital gains and losses from cryptocurrency. 

It’s important to remember that at this time, exchanges are not required to track cost basis. That means your Form 1099-DA may be inaccurate, especially in cases where you transferred crypto across wallets/exchanges.

To avoid situations like this, use crypto tax software like CoinLedger to track your gains and losses across wallets and exchanges. 

How to fill out Form 8949 in 6 steps

Here’s a 6-step process on how to report your cryptocurrency and NFT disposals on Form 8949. 

Step 1. Take into account all of your disposal events 

The first step to filling out your Form 8949 is to take account of every one of your cryptocurrency and NFT disposals during the tax year. 

Remember, each one of your disposals across your wallets and exchanges need to be reported on Form 8949. Examples of disposals include selling your cryptocurrency or NFTs, trading your crypto assets away, or using cryptocurrency to purchase goods or services. 

Step 2. Collect information on your cryptocurrency disposals 

To report your cryptocurrency and NFT disposals on Form 8949, you’ll need the following information: 

• A description of the property you sold (ex. 1.5 BTC) 
• The date you originally acquired the property 
• The date you sold or disposed of the property 
• Proceeds from your crypto disposal
• Your cost basis for purchasing the property 
• Your gain or loss 
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If you haven’t kept accurate records of your proceeds and cost basis for your crypto transactions, you may have trouble filling out Form 8949. If this is the case, you may want to consider using crypto tax software to generate a comprehensive tax report automatically.

If you want extra help reporting your crypto transactions, consider CoinLedger Done For You. A CoinLedger tax expert will work with you one-on-one to answer any questions, help you report your transaction data, and generate a complete tax report. 

Step 3. Divide your transactions into short-term and long-term disposals 

Form 8949 is divided into two sections: short-term and long-term. You should take note of which of your disposals fall into which category. 

If you dispose of your assets after holding them for less than 12 months, they should be reported on the short-term section. If you dispose of your assets after holding them for more than 12 months, they should be reported on the long-term section. 

Long-term disposals are subject to more favorable tax rates. 

If your total income is more than $200,000 during the year, you may have to pay net investment income tax (NIT). This is an additional 3.8% tax on capital gains, interest income, and other forms of ‘investment income’.

Step 4. Select the correct option 

In both the short-term and long-term sections, you’ll need to select one of three checkboxes. Here are the options in Part I.

If you received Form 1099-DA, you should select option G or H, depending on whether your exchange reported cost basis on your transactions.

Step 5. Report your disposals on Form 8949 

Now, you can get started recording your cryptocurrency disposals on Form 8949. 

To better understand how to fill out the form, let’s take a look at a sample transaction history. 

Here’s how Ben’s transactions would be reported on Form 8949. 

In some cases, your Form 1099-DA may have an inaccurate cost basis. In cases like this, you can use code B in column (f) and make an adjustment based on your gain/loss calculation from your crypto tax software.

There's no need to fill out columns (f)and (g) if your Form 1099-DA did not report cost basis.

Pro Tip: If you disposed of ‘collectible’ NFTs during the tax year, you may want to report your short-term and long-term gains and losses from these assets on a separate Form 8949. Collectible NFTs are subject to a different tax rate. For more information, check out our guide to NFT taxes.

Step 6. Report your net gain or loss on Schedule D 

Once you’ve finished reporting your disposals on Form 8949, you are required to report your net short-term and long-term capital gains/losses on Schedule D. 

If you have any capital losses from prior years that you wish to carry forward, you can report them here. 

How to generate a Form 8949 with crypto tax software 

Looking for an easier way to fill out Form 8949? Crypto tax software like CoinLedger can help.

With CoinLedger, you can connect to your wallets and exchanges and import your transactions in minutes! Once you’re done, you can download completed IRS forms like Form 8949!

Get started with a free CoinLedger account today. 

Do I have to fill out Form 8949 if I didn’t receive a 1099 form? 

If you didn’t receive a 1099 form, you are still required to fill out Form 8949 if you have disposed of crypto during the tax year. 

Remember, all of your taxable income from cryptocurrency should be reported on your tax return. Failure to do so is considered tax evasion, a serious crime with serious consequences. 

How can I add my cryptocurrency Form 8949 to TurboTax? 

If you’re using TurboTax or TaxAct to file your tax return, CoinLedger can help you generate a cryptocurrency capital gains report that can be imported into either platform.

For more information, read our guides to TurboTax and TaxAct imports. 
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