If you’ve been trading, selling, or earning cryptocurrency on Kraken, you may need to report your transactions for tax purposes. Kraken issues 1099 forms to eligible users, summarizing their taxable income. Knowing how to access your Kraken 1099 and what to do with it can help you stay compliant with IRS regulations. Here’s what you need to know.
What Is a Kraken 1099 Form?
A 1099 form is an IRS document used to report different types of income. Kraken issues a 1099-MISC to U.S. users who have earned at least $600 in rewards or staking income. However, Kraken does not issue a 1099-B, meaning you are responsible for tracking and reporting your crypto trades.
Even if you don’t receive a 1099, you are still required to report any taxable crypto activity on your tax return.
How to Get Your Kraken 1099 Form
To check if you have a 1099 from Kraken:
- Log into Kraken: Visit the Kraken website and sign in to your account.
- Go to the Tax Center: Navigate to Settings > Tax Reports.
- Download Your 1099: If eligible, you will find a 1099-MISC form available for download in PDF format.
- Review Your Transactions: Make sure all reported income matches your 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 taxable events.
What to Do With Your 1099 Form
Once you have your Kraken 1099, follow these steps:
- Import It Into Tax Software: Platforms like TurboTax, CoinTracker, or Koinly can help automate tax reporting for crypto transactions.
- Report Capital Gains and Losses: If you sold or traded crypto, you need to report your 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 guidance can ensure accurate filing and potential deductions.
Final Thoughts
Even if Kraken does not issue you a 1099 form, you are still required to report your cryptocurrency earnings and capital gains. Keeping track of your transactions and filing your taxes correctly will help you stay compliant and avoid IRS penalties.