Get expert tax and accounting help!
Call (866) 681-2140
Call (866) 681-2140
Players can face the tax implications of crypto gambling before any win pays out. We handle crypto gambling taxes on both sides: any gain or loss on coins wagered and the income from each win.
Yes. The IRS taxes all gambling winnings as income, including wins that do not appear on a Form W-2G. The player reports a payout in coins at its fair market value in dollars when received. That dollar value becomes the player's basis in the coins won. We measure any later sale or swap of those coins from that figure.
A player can realize a capital gain or loss when wagering coins. The IRS treats digital assets exchanged for property or services as disposed of, but a transfer between wallets the player owns is not taxed.
Example, assuming the IRS treats the wager as a disposal of the coins:
Bought for $5,000 and wagered when worth $7,000: a $2,000 capital gain on Form 8949.
The wager lost: a $7,000 gambling loss, subject to the 2026 loss limits.
A casual player reports winnings on Schedule 1, line 8b, and gains or losses on the coins on Form 8949. A professional gambler reports on Schedule C.
A casual player who itemizes claims gambling losses on Schedule A as an other itemized deduction. The deduction cannot exceed the gambling winnings reported for the year.
Reporting a crypto bet, form by form
For players who do not gamble as a business
If disposed of at the wager: dollar value then, minus what the coins cost
Form 8949Coins counted at their dollar value when received, with or without a Form W-2G
Schedule 1, line 8bOnly up to winnings; from 2026, no more than 90 percent of losses
Schedule A, gambling lossesMeasured from the dollar value when the coins were won
Form 8949We match each deposit and withdrawal to the wallet that sent or received it, and flag deposits the casino converted on arrival.
We price each payout on the day received, then calculate the tax on crypto gambling winnings and the basis of the coins won.
We calculate the gain or loss on each coin disposed of at a wager and report it with other trades under our cryptocurrency tax services.
We tie each loss to a session record and apply the 2026 limit before we claim a Schedule A deduction.
Send the full export of deposits, bets, wins and withdrawals for the year.
Send purchase records for each coin sent to the casino to prove its cost.
Keep the date, platform, amount staked and result for each session, as the IRS expects.
Send exchange records for coins moved off the casino and sold or swapped, with dates and amounts.
Send any Form W-2G, Form 1099-DA or other tax form received for the year.
I was looking for an accountant that knew how to handle crypto and other non-traditional financial circumstances across my accounts and businesses.
We quote a fixed fee before work starts, based on:
The lightest file is one casino and one wallet, with an aggregator report in hand. These are the factors, not a quote.
For winnings paid only in dollars, we apply the standard gambling income tax rules.
Send the casino export and wallet records, and a CPA confirms how crypto gambling taxes apply to the year before anything is filed.
