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Form 8949 is where you list each sale, swap or spend of crypto you held as a capital asset: what it was, when you got it, when you disposed of it, the proceeds, your cost basis and the gain or loss. The totals go to Schedule D. Since the 2025 forms, crypto has its own boxes: G, H or I for short-term (held one year or less) and J, K or L for long-term, depending on whether you received a Form 1099-DA and whether it reported your basis to the IRS. Staking and mining income doesn't go on Form 8949; the IRS sends it to Schedule 1.
Not financial advice. This is a general, educational comparison of features and published fees. It is not a recommendation to buy, sell or hold any crypto asset. Crypto prices are volatile and you can lose money.
Not tax advice. This is general, educational information about tools and IRS forms. Your situation may differ; ask a tax professional before you file.
Does Form 8949 apply to you?
The IRS treats digital assets, including stablecoins and NFTs, as property, not currency. It says you must report digital asset transactions "whether or not they result in a taxable gain or loss". For the yes/no digital asset question on Form 1040, the IRS lists these as transactions:
| Usually a disposal (Form 8949) | Usually not a disposal |
|---|---|
| Selling crypto for dollars | Buying crypto with dollars and holding it |
| Swapping one crypto for another | Moving crypto between wallets or accounts you own |
| Paying for goods or services with crypto | Simply holding crypto in a wallet or account |
| Paying a transaction fee in crypto (this counts, even on a move between your own wallets) |
Checked October 17, 2026 against irs.gov (2025 Form 8949 instructions, the latest published).
Income is a separate track. The IRS sends staking, mining, fork and similar income to Schedule 1 (Form 1040), crypto paid as wages to Form 1040, contractor payments to Schedule C, and gifts of crypto to Form 709. When you later sell coins you received as income, that sale goes on Form 8949, with the value you reported as income as your basis.
The six digital asset boxes
Each Part of Form 8949 takes one box. Short-term sales go in Part I, long-term in Part II. The IRS says not to use the old boxes C or F for digital assets.
| Box | Part | Use it for digital asset sales where… |
|---|---|---|
| G | I (short-term) | You got a Form 1099-DA showing basis was reported to the IRS |
| H | I (short-term) | You got a Form 1099-DA without basis, or showing basis wasn't reported to the IRS |
| I | I (short-term) | You got no Form 1099-DA (for example, a swap in your own wallet) |
| J | II (long-term) | As G, for long-term sales |
| K | II (long-term) | As H, for long-term sales |
| L | II (long-term) | As I, for long-term sales |
Checked October 17, 2026 against irs.gov (2025 Form 8949 instructions, the latest published).
If your sales need more than one box, you file a separate Part I or Part II for each box. The "Applicable checkbox on Form 8949" near the top of a 1099-DA tells you which box the broker expects.
Form 1099-DA: what brokers now report
Under the broker rules described on irs.gov, brokers such as custodial exchanges must report gross proceeds on Form 1099-DA for sales on or after January 1, 2025, and cost basis for certain sales on or after January 1, 2026. The Form 8949 instructions list "a digital asset acquired after 2025" as a covered security. In plain terms:
- 2025 sales: most 1099-DAs show proceeds only, so many sales land in box H or K and you supply the basis from your own records.
- 2026 sales: coins bought in 2026 and sold on the same platform may have basis reported, putting those sales in box G or J. Coins bought earlier, or transferred in from elsewhere, can still arrive without basis.
- Non-custodial activity (swaps in your own wallet) generally produces no 1099-DA, so it goes in box I or L.
- Exchanges can be wrong or incomplete, especially on basis for coins you moved in. The instructions give code B for an incorrect basis on a 1099-DA, with a worksheet for the adjustment.
Column by column
| Column | What goes in it (per the IRS instructions) |
|---|---|
| (a) Description | The asset's name or symbol and the exact units sold, plus the sale transaction ID if available, e.g. "0.05 BTC" |
| (b) Date acquired | When you got it. "VARIOUS" is allowed for a lot bought over several dates (short- and long-term parts still go separately); "INHERITED" for inherited assets |
| (c) Date sold | The date you sold, swapped or spent it |
| (d) Proceeds | With a 1099-DA: the proceeds it shows. Without one: net proceeds, meaning gross proceeds minus selling costs |
| (e) Cost or other basis | What it cost you, including transaction fees and commissions. With a 1099-DA that reported basis, enter that basis and correct it in (g) if wrong |
| (f) Code | A letter explaining any adjustment, e.g. E for transaction costs not reflected on the 1099-DA, B for incorrect basis, M for totals reported on one row |
| (g) Adjustment | The amount of the adjustment; negative amounts go in parentheses |
| (h) Gain or loss | (d) minus (e), then apply (g). Losses go in parentheses |
Checked October 17, 2026 against irs.gov (2025 Form 8949 instructions, the latest published).
Two small rules that trip people up: to work out the holding period you start counting on the day after you acquired the asset and include the day you disposed of it, and if you round to whole dollars you must round every amount.
Worked examples
These are illustrations with made-up numbers, not filing instructions. Network fees are left out to keep the arithmetic clear.
1. A swap in your own wallet (box I)
On January 20, 2026 you buy 1.2 ETH for $4,000 plus a $20 fee, so your basis is $4,020. You move it to your own wallet and, on August 15, 2026, swap all of it for another token worth $4,600. There is no broker and no 1099-DA, and you held it under a year, so it goes in Part I, box I: (a) 1.2 ETH, (b) 01/20/2026, (c) 08/15/2026, (d) $4,600, (e) $4,020, (h) $580 short-term gain.
2. A long-term sale with no basis on the 1099-DA (box K)
You bought 0.1 BTC on May 1, 2024 for $6,000 on one exchange, moved it to a second exchange, and sold it there on June 2, 2026 for $10,500. The second exchange's 1099-DA shows $10,500 of proceeds but no basis, because it never saw your purchase. Held more than a year, so Part II, box K: (d) $10,500, (e) $6,000 from your own records, (h) $4,500 long-term gain. This is the most common reason people need tax software or careful records: the exchange alone can't know your basis.
3. A cost the 1099-DA left out (code E)
A 1099-DA shows $2,000 of proceeds and $1,500 of reported basis, but you paid a $10 transaction cost it doesn't reflect. You enter (d) $2,000, (e) $1,500, (f) E, (g) ($10), and (h) $490.
4. The one-year line
Bought March 10, 2025. Counting from the day after, a sale on March 10, 2026 is held exactly one year, which is "1 year or less": short-term. A sale on March 11, 2026 is more than one year: long-term.
5. A net loss
If your losses exceed your gains, the IRS lets you deduct the smaller of the net loss or $3,000 ($1,500 if married filing separately) against other income, and carry the rest forward. A $5,000 net capital loss for a single filer means $3,000 deducted this year and $2,000 carried to next year.
Hundreds of sales? You don't need hundreds of rows
- Exception 1: sales reported on a 1099-DA that shows basis was reported to the IRS, with no adjustments needed, can skip Form 8949 and go as totals straight onto Schedule D (line 1a for short-term, 8a for long-term).
- Exception 2: you can attach a statement with all the same details in a similar format and enter only the totals on Form 8949, with code M in column (f).
- E-filing with a statement: if your e-filed return doesn't list each sale, the IRS says to attach Form 8949 (or the statement) to Form 8453 and mail it, unless Exception 1 applies.
This is exactly what crypto tax software produces: a full Form 8949 or a statement, plus Schedule D totals. Both Koinly and CoinLedger also describe a "totals plus PDF statement" route for TurboTax when there are too many sales to import.
Filling it in, step by step
- Collect every Form 1099-DA (and any 1099-MISC for crypto income) from each exchange.
- Export your full transaction history from every exchange and list every wallet you own, including old accounts.
- Match transfers between your own wallets so they aren't treated as sales.
- Work out the basis of every unit you disposed of, from your records, not just from the 1099-DA.
- Sort each sale into short-term or long-term, then into box G, H, I, J, K or L.
- Fill columns (a) to (h), or prepare a statement and enter totals.
- Carry the totals to Schedule D, and report staking or mining income on Schedule 1.
- Answer the digital asset question on Form 1040 ("Yes" if you had any of the transactions above).
- Keep your records: the IRS says you must keep records that support the positions on your return.
What it costs to produce Form 8949
| Your year | By hand | Koinly | CoinLedger |
|---|---|---|---|
| 5 sales, all on one exchange | $0 and an evening | $49 (Newbie, if under 100 transactions) | $49 (Hobbyist) |
| 300 sales and swaps across 3 platforms | $0, but many hours and a high error risk | $99 (Hodler) | $99 (Investor) |
| 12,000 bot trades | Not realistic | Pro plan plus top-ups: Not published | $499 (Unlimited) |
Software prices checked October 17, 2026 on koinly.io and coinledger.io.
Pros, cons and catches of each route
Doing it yourself
Pros
- Free, and you see every number.
- Fine for a handful of sales with clear records.
Cons
- Slow, and basis errors are easy to make.
Catches
- You still need every 1099-DA and your own basis records; the boxes changed in 2025.
Crypto tax software
Pros
- Imports history, matches transfers, fills every column and box.
- Produces the Schedule D totals and a statement.
Cons
- Costs $49 to $499 a year, depending on volume and tool.
Catches
- It is only as good as your imports; missing history means wrong basis.
A tax professional
Pros
- Judgment on unusual income, DeFi and classification.
Cons
- The highest cost; fees Not published here.
Catches
- They will still want clean records or a software report.
Who this guide is for
It is for US taxpayers who sold, swapped or spent crypto and want to understand the form before they file or hand records to someone else. It isn't for anyone who only bought and held (you still answer the digital asset question, but there is usually nothing for Form 8949), and it isn't tax advice. The latest instructions on irs.gov are for 2025 returns, filed in 2026; check IRS.gov/Form8949 for the 2026 version before filing next season.
Scam alert from the IRS: the IRS says it does not require registration of digital assets. A letter with a QR code asking you to register crypto on a "compliance portal" is a scam.
Next steps: compare tools in our crypto tax software guide or Koinly vs CoinLedger.
Not sure? Take the 60-second quiz →
FAQ
What is Form 8949 used for with crypto?
To list each sale, swap or other disposal of crypto held as a capital asset, with dates, proceeds, cost basis and gain or loss. The totals go to Schedule D.
Which Form 8949 box do I use for crypto?
From the 2025 forms: G, H or I for short-term and J, K or L for long-term. G and J if your Form 1099-DA reported basis to the IRS, H and K if it didn't, and I and L if you got no 1099-DA.
Do I report staking rewards on Form 8949?
No. The IRS says income from staking, mining and forks goes on Schedule 1 (Form 1040). If you later sell those coins, the sale goes on Form 8949.
Is moving crypto between my own wallets taxable?
The IRS says a transfer between wallets you own isn't a digital asset transaction for the Form 1040 question, unless you paid the transaction fee in crypto.
What is Form 1099-DA?
A form brokers use to report digital asset sales. They report gross proceeds for sales from January 1, 2025, and cost basis for certain sales from January 1, 2026.
Can I skip listing every crypto sale?
Sometimes. If a 1099-DA shows basis was reported and no adjustments are needed, you can report totals directly on Schedule D. Otherwise you can attach a statement and enter totals on Form 8949 with code M.
How much crypto loss can I deduct?
Net capital losses offset gains, and up to $3,000 a year ($1,500 married filing separately) of any excess offsets other income; the rest carries forward.
Is this tax advice?
No. It is a plain-English summary of IRS instructions. Ask a tax professional about your own return.
How we checked
On October 17, 2026 we read the IRS Instructions for Form 8949 (2025, the latest published), the IRS digital assets page, the About Form 1099-DA page and Tax Topic 409, and summarized only what they say. The worked examples are our own illustrations with made-up amounts, built on the IRS column rules; they are not filing instructions. Software prices come from koinly.io and coinledger.io the same day. This is educational, not tax advice.
Sources
- IRS: Instructions for Form 8949 (2025): https://www.irs.gov/instructions/i8949
- IRS: Digital assets: https://www.irs.gov/filing/digital-assets
- IRS: About Form 1099-DA: https://www.irs.gov/forms-pubs/about-form-1099-da
- IRS: Topic no. 409, Capital gains and losses: https://www.irs.gov/taxtopics/tc409
- Koinly pricing: https://koinly.io/pricing/
- CoinLedger pricing: https://coinledger.io/pricing
Everything above comes from these official pages as of October 17, 2026. Claims we couldn't confirm there are left out or marked "Not published".