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
-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.