The IRS is cracking down on crypto in 2025. Learn how crypto is taxed in the US, 1099-DA reporting, and what to do before filing season.
Intro
If you traded crypto in 2024, the IRS already has your data. With new 1099-DA reporting rules, exchanges like Coinbase and Kraken now report directly to the IRS. Here’s what you need to know for 2025.
How Crypto Is Taxed in the US
- Crypto = property, not currency.
- Capital gains tax applies whenever you sell, swap, or spend crypto.
- Short-term gains (<1 year) → taxed at income tax rate (10–37%).
- Long-term gains (>1 year) → 0%, 15%, or 20% depending on income.
Income Tax Events
- Staking, mining, and airdrops are ordinary income.
- Taxed at your marginal rate the day you receive them.
Key IRS Changes in 2025
- Form 1099-DA: automatic reporting by exchanges.
- The crypto question on Form 1040 is unavoidable.
- Non-reporting = penalties and interest.
Final Thoughts
The IRS is watching closer than ever.
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