Kraken Taxes and Form 1099-DA: Kraken’s Combined Form 1099 Explained
Kraken sends US clients a combined Form 1099 with Form 1099-DA and 1099-MISC. What it covers, what it leaves out, and how to report it.
Does Kraken report to the IRS?
Yes. Kraken reports US clients’ crypto sales and disposals to the IRS on Form 1099-DA from tax year 2025, and reward income of $600 or more on Form 1099-MISC. Both forms are delivered as one combined Form 1099 document, and the IRS receives the same information.
Before Form 1099-DA, Kraken did not report crypto sales to the IRS on a standard form. It issued 1099-MISC for rewards in some years, and none for 2024. That gap has closed. Gains and losses on Kraken trades are now matched against your return.
What is on Kraken’s combined Form 1099?
Kraken’s combined Form 1099 contains Form 1099-DA for digital asset sales and Form 1099-MISC for other income.
| Form | What it reports | Threshold |
|---|---|---|
| 1099-DA | Gross proceeds from sales and dispositions of digital assets, with date of sale, asset name and code, units sold, and whether units were transferred in. Adds cost basis, gains or losses and holding periods for positions acquired from January 1, 2026. | Reportable sales on Kraken.com and Kraken Pro |
| 1099-MISC | Staking rewards, airdrops, referral bonuses and deposit bonuses | $600 or more in the tax year |
Kraken states that the statement is designed for your Kraken Exchange account. Activity in Kraken Wallet, its self-custody app, and on its Ink network is not included, so you must track those transactions yourself.
Why is the cost basis on my Kraken 1099-DA “for information only”?
For tax year 2025 the IRS does not require brokers to report cost basis, so Kraken’s FIFO basis and gain/loss figures are estimates for your reference, not figures sent to the IRS. FIFO (first in, first out) assumes you sold your oldest coins first. If you use a different lot method, or bought the coins elsewhere, your correct basis may differ.
From tax year 2026, Kraken reports cost basis to the IRS for covered positions: crypto acquired on Kraken on or after January 1, 2026 and held there until sold. Coins bought earlier or transferred in remain noncovered, and you supply their basis. Check any sale:
How do I download my Kraken tax forms?
Kraken tax forms are available only on Kraken’s website, at Kraken.com or Pro.Kraken.com, from the Tax Center. They are not in the mobile apps. Kraken recommends using a computer.
- Sign in at Kraken.com (or Pro.Kraken.com) on a desktop browser.
- Open the Tax Center from your account menu.
- Download the combined Form 1099 for the tax year once it shows as available.
- Export your full trade and ledger history as CSV. You need it for any sale without reported basis, and for Kraken Wallet or Ink activity.
How do I report my Kraken 1099-DA?
Report every sale on Form 8949 using the proceeds from Kraken’s 1099-DA and your own correct cost basis, then carry the totals to Schedule D.
- Match the sales on the 1099-DA to your Kraken trade history.
- Use Kraken’s FIFO estimate only if FIFO is the method you use and the coins were bought on Kraken. Otherwise, use your own records.
- Split short-term (one year or less) from long-term sales.
- Report 1099-MISC amounts (staking, airdrops, bonuses) as ordinary income. Report smaller amounts from your own records.
- Add any Kraken Wallet or Ink activity that isn’t on the form.
Every box on the form, and the covered/noncovered rules, are explained in Form 1099-DA explained. For a comparison with Coinbase’s forms, see the Coinbase 1099-DA guide.
Frequently asked questions
Sources
- Kraken — Tax forms support article
- Kraken — How to read your 2025 combined Form 1099
- IRS — Instructions for Form 1099-DA
- IRS — Digital assets
More on Kraken, including every CoinScoop news story about the exchange, is on the Kraken exchange page.
General information about IRS reporting, not tax advice. Consult a qualified tax professional about your situation.
Nadia Rahman
Nadia Rahman is CoinScoop's Markets Editor. She covers Bitcoin, macro liquidity and the spot-ETF complex, and previously reported on rates and FX for a global newswire.