How to Report Crypto on Form 8949: A 2026 Line-by-Line Guide

Every crypto sale, swap or purchase made with crypto lands on one IRS form: Form 8949, Sales and Other Dispositions of Capital Assets. Since brokers started sending Form 1099-DA, the form has six checkboxes just for digital assets, and choosing the wrong one is the most common way to create a mismatch the IRS will notice. This guide walks through the form the way you will fill it in, using the 2025 Form 8949 instructions, the latest available. Check the 2026 version when the IRS releases it for your 2026 return.

Who needs to file Form 8949 for crypto

You need Form 8949 if you disposed of any digital asset during the year. That includes:

• selling crypto for dollars,
• swapping one coin for another, including into a stablecoin,
• spending crypto on goods or services,
• selling an NFT.

Crypto you earned does not go on Form 8949. Staking rewards, mining income, airdrops and pay for work are ordinary income, reported on Schedule 1 or Schedule C. Buying crypto with cash and moving it between your own wallets are not reportable sales at all.

The six digital asset boxes

Form 8949 has two parts. Part I is for short-term transactions (held one year or less) and Part II is for long-term transactions (held more than a year). Each page of each part covers one checkbox, so you may need several pages.

Which box you end up using depends on the year:

• 2025 returns (filed in 2026): 1099-DAs for 2025 report gross proceeds without cost basis, so most exchange sales go in box H or K.
• 2026 returns (filed in 2027): brokers must report basis for covered assets, meaning crypto acquired after 2025 in an account at that broker and held there until the sale. Those sales go in box G or J. Coins you bought earlier, or moved in from another wallet, are still box H or K.
• Self-custody and DeFi: swaps on a decentralized exchange or from your own wallet do not come with a 1099-DA, so they go in box I or L.

Filling in columns (a) to (h)

Each disposal generally gets its own row:

• (a) Description of property. The asset's name or symbol and the exact number of units, for example "0.25 BTC". The instructions ask you to add the sale's transaction ID if you have one.
• (b) Date acquired. If the units came from purchases on different dates you can write "VARIOUS", but short-term and long-term units still have to be split between Part I and Part II.
• (c) Date sold or disposed of.
• (d) Proceeds. What you received, in dollars. For a swap, it is the dollar value of the coin you received at the time of the swap.
• (e) Cost or other basis. What you paid, including transaction fees and commissions.
• (f) Code and (g) Amount of adjustment. Only used when something needs correcting; see below.
• (h) Gain or (loss). Column (d) minus column (e), plus or minus column (g).

Here is how two sales look in practice. Both were made on a US exchange in 2026, and only the second coin was bought after 2025 on the same platform, so only its basis was reported:

The Bitcoin was held more than a year, so it is long-term and goes in Part II under box K, because the broker could not report basis for coins bought in 2023. The SOL was held six months, so it is short-term, in Part I under box G.

Matching your 1099-DA to Form 8949

Fixing a wrong 1099-DA: codes B and E

A 1099-DA can be wrong, most often because the exchange does not know what you paid for coins you transferred in. You still report the form, because the IRS has a copy, but you correct it on Form 8949:

• Code B: the basis on the form is incorrect. If you are using box H or K, enter the correct basis in column (e) and 0 in column (g). If you are using box G or J, enter the basis the broker reported in column (e), then enter the correction in column (g).
• Code E: transaction costs not reflected on the form. If fees you paid are not already included, enter them as a negative amount in column (g).

Keep the records behind any correction: the original purchase confirmation, the transfer between wallets and the exchange history.

When you can skip Form 8949

Exception 1. Some sales can go straight onto Schedule D, line 1a for short-term or line 8a for long-term, without listing them on Form 8949. Every condition must be met: the 1099-DA shows basis was reported to the IRS, there are no adjustments in box 1h or 1i, the Ordinary box in box 6 is not checked, you need no adjustments of your own, and you are not making or ending a qualified opportunity fund deferral. For 2025 returns this almost never applies to crypto, since 2025 forms carry no basis. For 2026 returns it becomes realistic for simple covered sales.

Exception 2. Instead of typing hundreds of rows, you can attach a statement, such as a report from crypto tax software, that contains the same information as Form 8949, and enter only the totals on the form with the correct box checked. The two exceptions can be used together.

From Form 8949 to your Form 1040

1. Total each Form 8949 page by box.
2. Carry the totals to Schedule D: short-term in Part I, long-term in Part II.
3. Schedule D nets your gains and losses. A net loss of up to $3,000 ($1,500 if married filing separately) reduces other income, and the rest carries forward.
4. The result goes on Form 1040.
5. Answer the digital asset question near the top of Form 1040 "Yes" if you sold, swapped or received crypto during the year.

Long-term gains on NFTs that count as collectibles can be taxed at up to 28%, which Schedule D handles through a separate worksheet.

Situations that trip people up

• Crypto-to-crypto swaps. Every swap is a row: the coin you gave up is the property sold, and the value of the coin you received is your proceeds.
• Coins moved between exchanges. The receiving exchange usually reports missing basis, so you use box H or K and enter the basis from your records.
• Stablecoins. Brokers can report qualifying stablecoin sales in aggregate when they total $10,000 or less for the year, but you still report your dispositions.
• Fees paid in crypto. Paying a network fee with crypto is itself a small disposal under current law, and is usually handled by software.

Step by step: reporting crypto on Form 8949

1. Collect every 1099-DA plus full CSV histories from each exchange and wallet you used.
2. List every disposal: sales, swaps, spending and NFT sales, with dates, units, proceeds and basis.
3. Split by holding period: one year or less goes in Part I, more than a year in Part II.
4. Sort by checkbox: G or J if basis was reported, H or K if not, I or L if there was no 1099-DA.
5. Fill columns (a) to (h) for each row, or attach a statement under Exception 2.
6. Add corrections with code B or E where the 1099-DA is wrong.
7. Carry the totals to Schedule D, then to Form 1040, and answer the digital asset question.
8. Report crypto income separately on Schedule 1 or Schedule C.

The 2026 return is due April 15, 2027. Form 4868 extends the time to file to October 15, but not the time to pay. To estimate what you will owe before you start, run your totals through the free calculator.

Frequently asked questions

Do I need Form 8949 if my crypto exchange sent a 1099-DA?

Usually yes. You can skip it only for sales that meet every condition of Exception 1, which requires the 1099-DA to show basis reported to the IRS with no adjustments. For most 2025 crypto sales that is not possible, because 2025 forms show proceeds without basis.

Which Form 8949 box do I check for crypto?

Boxes G, H and I are for short-term digital asset sales and J, K and L are for long-term ones. Use G or J when the 1099-DA shows basis was reported to the IRS, H or K when it was not, and I or L when you received no 1099-DA. Do not use box C or F.

What if my 1099-DA shows no cost basis?

Use box H or K and enter your own basis from your records in column (e). If the form shows a basis that is wrong, use code B in column (f).

Do I have to list every crypto transaction separately?

Each disposal generally gets its own row, but Exception 2 lets you attach a statement with the same details, such as a software report, and enter only the totals on Form 8949.

Do crypto-to-crypto trades go on Form 8949?

Yes. A swap is a disposal of the coin you gave up. Your proceeds are the dollar value of the coin you received at the time of the swap.

Where do staking rewards go if not on Form 8949?

Staking, mining and airdrop income is ordinary income, reported on Schedule 1 as other income, or on Schedule C if it is part of a business. When you later sell those coins, that sale goes on Form 8949 with the income value as your basis.

When is Form 8949 due for 2026 crypto sales?

With your 2026 Form 1040, due April 15, 2027. An extension on Form 4868 moves the filing date to October 15, 2027, but any tax owed is still due in April.

Sources

1. IRS, Instructions for Form 8949 (2025)
2. IRS, Instructions for Form 1099-DA
3. IRS, Digital assets
4. IRS, Topic 409: Capital gains and losses

This guide is general information for the 2026 tax year, not tax, legal or financial advice. Tax rules change often, so confirm your situation with a qualified professional before you file. Spotted an error? Email taxoncrypto@gmail.com.