Since launching in 2012, Coinbase has grown into one of the most recognizable centralized crypto exchanges (CEXs), with over 100 million users (as of 2022). Its global reach makes it a go-to platform for traders, but it also means regulators closely monitor its operations. To stay compliant, Coinbase prioritizes transparency and adhering to local and international laws, which include any required reporting to authorities.

This raises an important question for U.S. traders: Does Coinbase report to the IRS? And if so, how does that impact their tax returns? In this guide, we'll tell you what you need to know.

Coinbase and taxes: How are Coinbase transactions taxed? 

As with any crypto exchange, multiple taxable events can occur on Coinbase, including selling, exchanging, or spending crypto, as well as earning rewards. When traders swap digital assets for fiat, trade one cryptocurrency for another, or spend crypto, they realize a capital gain or loss based on the difference between the asset’s cost basis and the amount realized in the transaction. 

Additionally, the IRS considers crypto earned through Coinbase services – such as Coinbase Learning Rewards, staking, or referral bonuses – taxable income. This income is taxed as ordinary income based on its fair market value (FMV) at the time of receipt and must be reported accordingly.

While Coinbase provides some tax reporting for its centralized exchange, transactions executed through Coinbase Wallet are not reported on Forms 1099. Coinbase Wallet is self-custodial, meaning users control their private keys and manage their assets independently. As a result, taxpayers are responsible for tracking and reporting their Coinbase Wallet transactions on their own. The same applies to decentralized finance (DeFi) activity through Base, Coinbase’s Ethereum Layer 2.

To simplify the reporting of Coinbase, Coinbase Wallet, and Base transactions, crypto tax software like CoinTracker integrates with Coinbase’s interface, helping investors organize and report transactions accurately.

Does Coinbase send tax forms to the IRS? 

Currently, Coinbase issues tax forms for U.S. customers based on activity and reports certain transactions to the IRS. If you earn $600 or more in crypto income, such as staking, learning, or referral rewards, Coinbase will issue a 1099-MISC. If you trade crypto futures contracts, you’ll receive a 1099-B for these trades. As with any Form 1099, a copy of these forms is filed with the IRS, so it is critical to report this income accurately to avoid any notices.

Starting Jan. 1, 2025, Coinbase must track gross proceeds from crypto sales and exchanges under the recently passed digital asset broker reporting regulations. These regulations require all U.S. custodial brokers to report taxable sales and exchanges of digital assets on Form 1099-DA. Users trading on Coinbase’s centralized exchange will receive their first 1099-DAs during the 2026 filing season, reporting taxable sales and exchanges for the 2025 tax year.

Coinbase taxes: Estimated capital gains

If you navigate to the "Taxes" menu in your Coinbase account, the Summary tab provides an estimated gain, categorized into converted, sold, spent crypto, and futures. These estimates are generally accurate if you only used Coinbase and did not transfer crypto in or out.

However, if you used multiple exchanges or wallets and transferred crypto between them, your estimated gains on Coinbase could be overstated or incomplete. In this case, you’ll need to manually calculate your taxable gains or use software like CoinTracker to consolidate data from all your sources and accurately determine gains and losses.

How to report Coinbase transactions on taxes

Coinbase won’t issue 1099-DAs until 2026 for the 2025 tax year, but this doesn’t mean you shouldn't report any taxable sales and exchanges from prior years to the IRS. Users are responsible for reporting all taxable transactions, whether from centralized exchanges like Coinbase or self-custodial wallets like Coinbase Wallet used with decentralized applications. Any taxable sales or exchanges should be reported on Form 8949, while any taxable income should be reported on Schedule 1 or the appropriate business form if earned within a trade or business. To ensure accurate reporting, keeping a detailed transaction history is critical.

You can always manually organize your Coinbase transaction history, but this process can become complex and subject to error as your transaction volume increases. For this reason, we recommend using crypto tax software like CoinTracker to streamline the process.

There are multiple ways to access transaction history on Coinbase. If you want to review your transactions manually, select the “Transactions” icon in the Coinbase navigation bar and review any transactions you wish to review, such as buys, sells, converts, sends, receives, deposits, withdrawals, and rewards. You can filter transactions by type, asset, status (completed, pending, and open), or for a given date range. You can also download your entire transaction history by navigating to the “Taxes” menu and selecting “Statements” in the navigation bar. From here, you can download monthly or yearly transaction history statements in HTML, PDF, or CSV format for all your Coinbase activities.

If you're using crypto tax software like CoinTracker, syncing is simple – link API keys from a Coinbase exchange account to CoinTracker’s platform for automatic tracking. For Coinbase Wallet, select “Add Wallet” on CoinTracker’s homepage, then scan the QR code (for mobile users) or use the browser extension pop-up. Once connected, CoinTracker’s dashboard imports all transaction details, making it easy to review and generate IRS-compliant tax reports.

Steps to report Coinbase taxes

If you sold, traded, or earned crypto on Coinbase, you’ll need to gather your transaction history and report it in your annual income tax return to the IRS using the proper forms. Make sure your records are complete before the April 15 deadline to avoid penalties and interest. Even if you plan on extending your tax return, having accurate records will help you properly calculate any extension payments due.

1. Download or import your transaction history

Coinbase users can download their transaction history from their Coinbase account to calculate any taxable gains or losses and ordinary income. You must remember to update this information with any new transactions after your download date to ensure your transaction history is complete. For an automated approach, connect Coinbase’s API to CoinTracker, which pulls in transaction data and automatically synchronizes future transactions.

2. Calculate your capital gains and losses

If you're manually calculating your capital gains, you'll need to track the cost basis for each asset and use a consistent accounting method, such as FIFO, HIFO, or LIFO, for all taxable disposals. Starting in the 2025 tax year, if you wish to use HIFO or LIFO, you must select your accounting method before making any sales or exchanges.

You'll also need to calculate the USD value of all transactions to report accurately on your individual income tax return. Also, any earned income from sources like staking or learning rewards must be accounted for by determining the FMV at the time of receipt.

CoinTracker automates this process, allowing you to view gains, losses, and income instantly across Coinbase and other crypto accounts.

3. Gather your 1099-MISC and/or 1099-B

Coinbase users who earned $600 or more from staking rewards and/or other income-generating activities will receive a Form 1099-MISC. You should generally report this form as issued on Schedule 1 or the proper business tax return if earned through a trade or business. Any U.S. customers who traded futures on Coinbase will receive Form 1099-B. You should report your 1099-Bs on Form 8949 of your individual income tax return.

4. Fill out Form 8949 and Schedule D

Form 8949 reports sales and dispositions of capital assets, including equities, securities, and property like cryptocurrency. You should report all Forms 1099-B on the appropriate section of Form 8949. You should also report all of your taxable crypto sales and exchanges on this form, including any Coinbase transactions and, starting in 2026, any 1099-DAs received. To assist with this reporting, CoinTracker will generate a sample Form 8949 that you can use as a reference to complete your income tax return. Remember that if you have other non-crypto taxable disposals reportable on Form 8949, your actual form will differ from the CoinTracker-generated forms.

Schedule D summarizes all capital gains and losses for the tax year, including those reported on Form 8949 and other capital gains reported on different forms. CoinTracker will generate a sample Schedule D for reference. Once again, remember that if you have other capital gains or carryovers, your Schedule D will differ from the CoinTracker-generated Schedule D.

5. Report any ordinary income

Crypto rewards, staking income, and airdrops must be reported as ordinary income. Individuals should generally report this income on Schedule 1, Line 8z, while businesses should report it on Schedule C or the appropriate business tax return, such as Form 1120, 1120-S, or 1065.

If you receive a 1099-MISC from Coinbase, you should pay special attention not to double-report this income. This income is included in your CoinTracker Schedule 1 if your Coinbase account is connected to CoinTracker. Make sure to report this based on your Form 1099-MISC without including the income from your CoinTracker Schedule 1 attributable to Coinbase to avoid double reporting of the income.

Use CoinTracker for Coinbase transactions  

As a proud partner of Coinbase, CoinTracker makes it easy to integrate both a Coinbase exchange account and Coinbase Wallet into our Portfolio Tracker software. But keep in mind that forms from Coinbase alone don’t capture your full Web3 activity. To provide the IRS with a complete picture of your crypto transfers, it’s important to submit detailed reports from all your crypto accounts.

Fortunately, our Portfolio Tracker connects to hundreds of exchange APIs and self-custodial wallets, allowing you to track every transaction and see how it affects your portfolio. CoinTracker also helps you account for complex activities like NFT trading and DeFi yield farming, ensuring you don’t leave anything out of your tax forms. 

Discover why millions of users trust CoinTracker with their crypto tax reports by getting started with a free account today.

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.