Crypto Tax Calculator

Crypto mining income is taxable as ordinary income at the fair market value of the tokens on the date received, per IRS Rev. Rul. 2023-14. If mining is conducted as a business (regular activity, profit motive), the income is reported on Schedule C and is subject to self-employment tax of 15.3% (12.4% SS + 2.9% Medicare). Hobby mining is reported as Other Income on Form 1040 without SE tax but also without the ability to deduct mining expenses.

Staking rewards are taxed as ordinary income at FMV when you gain dominion and control -- typically when rewards are credited to your wallet. For proof-of-stake validators, the IRS treats staking rewards the same as mining income. In 2026, staking income from a business operation is also subject to SE tax.

Starting in 2026, centralized cryptocurrency exchanges and brokers must issue Form 1099-DA (Digital Asset Proceeds) to customers, similar to Form 1099-B for stock sales. This requirement was enacted under the Infrastructure Investment and Jobs Act of 2021 and expanded by subsequent IRS final regulations.

Key reporting thresholds and rules for 2026:

• $10,000 cash transaction reporting: Digital asset transactions exceeding $10,000 must be reported on Form 8300 by the recipient business, matching existing cash reporting rules.
• Cost basis tracking: Brokers must begin tracking and reporting cost basis for digital assets acquired on their platform starting January 1, 2026. For assets acquired before this date or transferred in from external wallets, basis may be reported as "unknown" or "non-covered."
• DeFi and non-custodial platforms: The IRS has proposed rules extending broker reporting to DeFi front-end service providers, though implementation timelines remain under discussion.

Taxpayers should maintain their own records of acquisition date, cost basis, and transaction details for all crypto activity, especially for tokens held across multiple wallets, DEXs, and chains where broker reporting may be incomplete.

Tax-loss harvesting in crypto follows the same rules as stocks: you can sell a losing position, realize the capital loss, and use it to offset gains. Up to $3,000 of net capital losses ($1,500 MFS) can offset ordinary income per year under IRC Section 1211(b), with unlimited carryforward.

Unlike stocks, the wash sale rule under IRC Section 1091 has historically not applied to cryptocurrency because crypto is classified as property, not a security. However, the IRS has signaled intent to extend wash sale rules to digital assets in future regulations. As of 2026, you can sell Bitcoin at a loss and immediately repurchase it without triggering a wash sale disallowance -- but this may change.

Cost basis identification matters significantly for crypto. Using specific identification (choosing which lots to sell) instead of FIFO can save substantial tax. For example, if you bought 1 BTC at $20,000 and another at $60,000, selling the $60,000 lot first on a $65,000 sale produces only a $5,000 gain instead of a $45,000 gain. To use specific identification, you must identify the specific unit at the time of sale and maintain adequate records under Treas. Reg. 1.1012-1(c).