If you’ve been trading, selling, or earning cryptocurrency on Binance, you may need to report your transactions to the IRS. Binance issues 1099 forms to certain users, summarizing their taxable income. Understanding how to access your Binance 1099 and what to do with it can help you stay compliant with tax laws. Here’s what you need to know.
What Is a Binance 1099 Form?
A 1099 form is an IRS document used to report different types of income. In the past, Binance issued 1099-K forms to high-volume U.S. traders, but it no longer does so. Instead, Binance US may issue a 1099-MISC to users who have earned at least $600 in rewards or staking income.
If you have sold or traded crypto on Binance, you are responsible for reporting your capital gains and losses, even if you do not receive a 1099 form.
How to Get Your Binance 1099 Form
To check if you have a 1099 from Binance US:
- Log into Binance US: Visit the Binance US website and sign in.
- Go to the Tax Center: Navigate to Profile > Tax Statements.
- Download Your 1099: If eligible, your 1099-MISC form will be available for download in PDF format.
- Review Your Transactions: Ensure that all reported income matches your trading records before filing your taxes.
If you do not receive a 1099, you can still download your full transaction history to manually calculate and report your taxable events.
What to Do With Your 1099 Form
Once you have your Binance 1099, follow these steps:
- Import It Into Tax Software: Tools like TurboTax, CoinTracker, or Koinly can help automate tax reporting for crypto transactions.
- Report Capital Gains and Losses: If you traded crypto, you need to declare capital gains or losses. Short-term gains (held under a year) are taxed at higher rates than long-term gains.
- Declare Staking and Rewards Income: Any income from staking or promotions is taxable as ordinary income.
- Consult a Tax Professional: Crypto tax laws are complex, and professional assistance can help ensure accurate filing and possible deductions.
Final Thoughts
Even if Binance does not issue you a 1099 form, you are still required to report your cryptocurrency income and capital gains. By keeping track of your transactions and filing taxes correctly, you can avoid IRS penalties and stay compliant with regulations.