US crypto tax reporting in 2026: What you need to know

US tax season is upon us: If you’ve traded, earned, or staked crypto as a US taxpayer, now is the time to get your records in order for your federal return. Starting with 2025 transactions filed in 2026, covered US digital asset brokers, including most centralized exchanges, are required to report your crypto sales to the IRS using the new Form 1099‑DA. This means exchanges send information about your transactions to both you and the US government at the same time—a notable shift from previous years, when details were patchy and inconsistent. 

As US crypto tax reporting becomes more standardized and comprehensive, understanding what you may owe based on your activity and holdings is essential. The process doesn’t have to be daunting though. MetaMask Tax Hub powered by Summ can help US‑based crypto investors pull together a complete, IRS‑ready view of their taxable crypto activity in minutes.

Below, we break down what you need to know about filing your US crypto taxes in 2026.

Disclaimer: This guide is for educational purposes only. It is not financial advice, not tax advice, not a solicitation, and not for UK audiences. Consult a qualified tax advisor for professional guidance. This article focuses on US federal income tax rules for digital assets; state tax treatment can vary, so be sure to review the guidance for your state of residence.

What’s new for US crypto taxpayers in 2026 (IRS Form 1099‑DA)

Form 1099-DA is a new IRS form introduced to standardize digital asset reporting, distinct from the previous patchwork of reporting methods. By mid-February 2026, in line with IRS deadlines, you should receive this form from any centralized exchange that is required to report your 2025 crypto sales.

Key updates to keep in mind

Cost basis reporting begins

Brokers are scheduled to start reporting what you originally paid (cost basis) for transactions on or after January 1, 2026. For 2025 transactions, they are generally not required to report cost basis, though some may do so voluntarily. In many cases, you’ll still be responsible for calculating this yourself.

Wallet‑level tracking is required

The IRS has eliminated the “universal method,” which allowed you to treat the same asset across multiple wallets as one combined pool. Under the IRS’s digital asset basis rules, you’re now expected to maintain cost basis records on a per‑wallet or per‑account basis, rather than treating everything as one combined pool.

Even if you don’t receive a 1099‑DA, you are still obligated to report taxable crypto transactions whether a 1099‑DA is issued to you or not. Using a self‑custodial wallet like MetaMask doesn’t exempt you from US tax rules. Your blockchain transactions are public and traceable, and taxable events still need to be reflected on your return.

What makes 2026 US crypto tax filing different

2026 is the first filing season where standardized 1099‑DA reporting and new cost basis rules start to change how US crypto taxes work. A few things stand out:

Multiple data sources to reconcile

You may receive 1099‑DA forms from exchanges for your spot trades. DeFi activity, NFT sales, wallet‑to‑wallet transfers, and many on‑chain actions won’t appear on 1099‑DA.

Certain DeFi activities are not yet subject to broker reporting under current IRS rules, but may still be taxable. You’ll need to track and report these yourself.

Cost basis gaps

Exchanges can only report cost basis for assets they held from purchase to sale. If you moved crypto between platforms or wallets, you’re responsible for tracking what you originally paid.

More IRS visibility

With standardized digital asset reporting, it’s easier for the IRS to compare what exchanges report against what you file on your own return.

Timestamp differences

Brokers typically report using UTC time. A transaction that happens late on December 31 in your local time might appear as January 1 on your 1099‑DA, which can affect which tax year it falls into.

Late forms are possible

Under transitional relief rules, some brokers may issue 1099‑DA forms months after the usual January deadline. If you receive a late form that changes your totals, you may need to file an amended return.

How to report US crypto taxes: key details

At a high level, reporting crypto to the IRS on your US federal income tax return (Form 1040) involves two main components: capital gains/losses and income.

Capital gains and losses

Report crypto disposals (selling for fiat, swapping tokens, or using crypto to buy goods/services) on IRS Form 8949 as part of your US federal return. For each disposal, you’ll typically record the transaction date, what you received, your cost basis, and the gain or loss that results. You then transfer the aggregated figures from Form 8949 to Schedule D, where your overall capital gains and losses are reported as part of your IRS Form 1040.

Income from crypto

Income from staking, airdrops, or getting paid in crypto is generally reported as income at the fair market value when you receive it. Staking rewards and similar payments usually do not appear on Form 1099‑DA, so they can’t be ignored simply because they aren’t on an exchange form.

Short‑term and long‑term treatment

Gains on assets held for one year or less are generally treated as short‑term and taxed at your regular federal income rate. Gains on assets held for more than a year are usually considered long‑term and may be eligible for reduced federal capital gains rates, depending on your income and filing profile.

Note: This is a simplified overview, and not a substitute for official IRS instructions or personalized advice. A qualified tax professional can help you determine how these rules apply to your specific situation.

Simplify the process with MetaMask Tax Hub

Manually stitching together exchange 1099‑DAs, DeFi activity, and wallet history across networks takes time and can introduce errors. MetaMask Tax Hub powered by Summ is designed to reduce that friction for US‑based crypto users by:

• Connecting to thousands of wallets, exchanges, and DeFi platforms

• Automatically categorizing blockchain network transactions (trades, swaps, rewards, fees, transfers)

• Calculating gains and losses and generating reports formatted for the IRS

To generate a complete crypto tax report suitable for sharing with a US tax professional or entering into US tax software, you can upgrade to a paid Summ plan—MetaMask users currently receive a 30% discount applied at checkout.

Know before you file US crypto taxes for 2026

If you plan to self-report and do everything manually, before you submit your 2025 US federal tax return in 2026, it's worth running through a quick checklist comparing your exchange-reported information with your own records.

Compare your 1099‑DA forms with your own records

Exchanges may report proceeds without complete cost basis. Your own transaction history helps you identify gaps and reconcile differences.

Include all DeFi and NFT activity

Liquidity pool deposits/withdrawals, yield farming rewards, token wraps, and NFT trades may create taxable events that won’t show up on 1099‑DA.

Document everything

Keep records of transaction dates, amounts, and fair market values at the time of each event. Save CSVs and PDFs from exchanges, wallets, and tax tools for your files.

Consider professional help

If your situation involves large capital gains, multiple platforms, or complex DeFi structures, a crypto‑focused US tax professional can help you interpret the data and apply current IRS guidance.

Conclusion

Before you file taxes this year, make sure your crypto activity is captured as accurately as possible. Generating a comprehensive report with MetaMask Tax Hub can give you a clear view of what crypto taxes you may owe in minutes, and help reduce the time and stress of filing. 

Ready to do your crypto taxes? Start with a free estimate from MetaMask Tax Hub today.