As a US-based exchange, Coinbase is required to report your gains to the IRS. This means that if you made any money from trading on Coinbase in the last tax year, you will need to file a tax return.
If you made more than $20,000 in profit from trading on Coinbase, you will also need to file a Form 1099-K. This form is used to report income from electronic transactions, and it will show how much money you made from trading on Coinbase.
Coinbase will send you a 1099-K if you meet the following criteria:
-You are a US resident
-You made more than $20,000 in profit from trading on Coinbase in the last tax year
NOTE: Warning: Coinbase will not issue a 1099 to its customers. Coinbase is only obligated to issue a 1099 form to customers who have had at least $20,000 in sales of virtual currency and/or 200 or more transactions in the past year. If you do not meet these requirements, Coinbase will not provide you with a 1099 form.
-You have provided Coinbase with your Social Security number or Tax ID number
If you do not meet all of the criteria above, Coinbase will not send you a 1099-K. However, this does not mean that you do not have to pay taxes on your profits.
You will still need to file a tax return and report your profits from Coinbase trading regardless of whether or not you receive a 1099-K form.
2 Related Question Answers Found
As a US-based exchange, Coinbase is required to issue 1099 forms to customers who have made over $600 in profits through trading on the site. For customers who have not made over $600, Coinbase will still provide them with a 1099-K form that reports their total trading volume for the year. Coinbase has a few different options when it comes to withdrawing your earnings.
If you’re a Coinbase user, you may be wondering “do I get a 1099 from Coinbase?” The answer is yes – if you made over $20,000 in profit from your Coinbase account in a calendar year, you will receive a 1099-K form from Coinbase. A 1099-K form is an IRS tax form that is used to report income from “third party network transactions.” So if you made over $20,000 in profit from your Coinbase account in a calendar year, Coinbase is required to send you a 1099-K form. The 1099-K form will show your total income from your Coinbase account for the year.
