Key Takeaways
- Coinbase provides reports like gain/loss summaries, raw transaction CSVs, and IRS forms for US customers;
- Non-US customers won’t receive official tax documents like the IRS forms issued to US users, but they can still rely on their Coinbase transaction history to complete local filings;
- Always double-check missing details like cost basis and dates, and include activity from outside exchanges to avoid filing an incomplete return.
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After grinding all year to build up your crypto gains on Coinbase, the government naturally wants its slice of the pie. And as a responsible citizen, you want to get things right. But between figuring out which transactions are taxable, calculating gains and losses, and downloading the correct reports, Coinbase taxes can get pretty overwhelming.
The platform does provide a tax center to help organize your history, but it’s not the full picture. If you’ve also used Coinbase Pro, Coinbase Wallet, or another exchange like Binance or Kraken, you’ll need to bring in that activity yourself. The line between what Coinbase shows you and what you’re responsible for is where most people slip up.
The good news is that once you know what counts as taxable, which forms you might receive, and how to report everything properly, the process feels less intimidating.
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Table of Contents
- 1. Introduction to Coinbase Taxes
- 1.1. Reports Available in the Coinbase Tax Center
- 1.2. What Coinbase Taxes Don’t Include
- 2. How Coinbase Taxes Work
- 3. How to Report Coinbase on Taxes
- 3.1. Manual Reporting
- 3.2. Automatic Reporting
- 4. Additional Coinbase Tax Details
- 4.1. Cost-Basis Accounting Methods
- 4.2. Coinbase Taxes for Non-US Customers
- 5. Common Mistakes to Avoid
- 6. Conclusions
Introduction to Coinbase Taxes
When you use Coinbase, your taxable events (selling, swapping, spending, or earning crypto) need to be reported just like any other investment activity. To make that easier, the exchange offers a built-in tool called Coinbase Taxes (or Coinbase Tax Center), available on both web and mobile.
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The feature organizes your history into key reports such as the gain/loss report, raw transaction report, and account statements. You can download these and use them when filing your taxes. If you are a US user, you’ll also find documents designed to support your filing. These may include summaries of taxable events, earned income, and IRS forms, such as:
- 1099-MISC. Issued if you earned $600 or more in crypto income through staking, rewards, or other incentives.
- 1099-B. Provided to US customers who traded futures, reporting proceeds from those transactions.
- 1099-DA. Sent to US customers starting with the 2025 tax year, reporting gross proceeds and (from 2026 onward) cost basis from crypto sales and exchanges.
- 8949. Available to Coinbase One members, offering a pre-filled report of capital gains and losses for tax years back to 2021.
That being said, it's important to note that Coinbase doesn’t automatically deduct or pay your taxes. Unlike a traditional employer or broker that might withhold tax at the source, the platform simply records your transactions. It’s still your responsibility to report them to your respective tax authority.
Think of it as your starting point for crypto tax season. It organizes the data Coinbase already has on your transactions, so you don’t have to piece everything together manually. From there, you can get into more detailed reports.
Reports Available in the Coinbase Tax Center
Like other exchanges, Coinbase is required to report certain information to the IRS. But your responsibility as a taxpayer goes further. You must also report your own capital gains and losses when you file your return.
To help with that, the Tax Center offers downloadable reports that break down your activity in detail. These aren’t official tax forms you submit to the government, though. They’re more like well-organized cheat sheets to help you prepare your return.
Here’s what you can get:
- Gain/loss report. It shows every taxable event on your main Coinbase account, your proceeds, and your cost basis (what you originally paid). It also splits them into short-term and long-term gains.
- Raw transaction report. A CSV file with every transaction and its cost basis. It doesn’t calculate gains or losses, but gives you the raw data if you (or your accountant) prefer to reconcile manually.
- Account statements. Monthly or custom statements that provide a snapshot of all Coinbase activity within a given period, not just taxable events.
Keep in mind, these reports only cover activity on your main Coinbase account. They don’t include transactions from other Coinbase services or any activity that takes place outside the platform.
Every state or country has its own filing guidelines. For the most accurate and up-to-date information, be sure to check your state or local government’s official website.
What Coinbase Taxes Don’t Include
When you open the Coinbase Taxes, what you’re really seeing is a snapshot of your activity on the platform. All your buys, sells, conversions, and income are organized into reports you can download and use when it’s time to file.
However, do keep in mind that these reports won’t show activity from:
- Coinbase Pro. Since Pro was shut down in late 2023, trades after that date aren’t included. You can still download your Coinbase Pro tax report statements for activity before November 2023, though.
- Coinbase Wallet (now a part of Base App). Self-custody wallets live outside Coinbase’s reporting system. If you’ve sent or received crypto through it, that activity needs to be tracked manually.
- Coinbase Prime. Institutions or advanced traders using Prime must export their data separately to cover their obligations.
- DEX trades. Transactions made on decentralized exchanges aren’t reported on Coinbase crypto tax forms, since they occur on third-party platforms and the assets are held in a self-custodial wallet.
- Other external platforms. If you’ve traded on external exchanges like Binance or Kraken, or used a personal wallet like Ledger Flex, you’ll also need to pull those records in separately.
The Tax Center is a helpful starting point, but it won’t give you everything. If you’ve traded on other platforms, you’ll need to gather those records and combine them with your main Coinbase account reports.
"How do I report Coinbase on my taxes if I used multiple wallets?", you might also ask. Well, you need to combine the reports from each one yourself as well.
📚 Check Out: Guide to Crypto Tax-Loss Harvesting
How Coinbase Taxes Work
If you’ve used Coinbase to trade, earn, or spend crypto, those activities likely come with tax consequences. And while it might feel overwhelming at first, the IRS has made one thing clear: crypto is taxable in the US.[1]
That’s why it’s important to understand which activities are taxable and which aren’t. Since each category is taxed differently, knowing where your activity falls makes filing easier.
Broadly speaking, your activity on the platform falls into two taxable categories:
1
Capital gains tax. This applies when you dispose of crypto by selling, converting, or spending it. The taxable amount is the difference between what you paid and its fair market value at the time of disposal.
2
Income tax. This applies when you earn crypto through staking, mining, airdrops, or promos. The value at the time you received it is treated as regular income.
The key is to look at how you’ve used your crypto on the platform, because that’s what determines whether the IRS treats it under Coinbase crypto taxes as capital gains or income. Here's a breakdown:
Action | Type |
|---|---|
Selling crypto for cash | Capital gains |
Converting crypto-to-crypto | Capital gains |
Spending crypto on goods/services | Capital gains |
Margin trading crypto | Capital gains |
Earning staking rewards | Income |
Mining crypto | Income |
Getting an airdrop | Income |
Receiving other incentives or rewards | Income |
Table: Tax implications of common Coinbase transactions
Now let’s take a look at how different types of activity are taxed:
- Selling crypto for cash. If you sell your crypto for more than you paid, the difference is taxed as a capital gain. If you sell at a loss, that may be deductible to offset other gains.
- Converting crypto-to-crypto. Even if you don’t cash out, swapping tokens (like BTC to ETH) counts as disposing of the first one. That means gains are still taxable.
- Spending crypto. Using crypto for goods or services is also a taxable event. You’ll be taxed on the difference between your purchase price and the market value when you spend it.
- Margin trading. Profits from leveraged trades are taxed as capital gains. If your position is liquidated, that’s still a taxable event.
- Staking coin. Staking rewards are considered income at their fair market value the moment you gain control of them.
- Mining crypto. Crypto mining rewards are taxed as income, and if you mine as a business, they may also be subject to self-employment tax.
- Getting an airdrop. Airdropped tokens are taxed as income when they land in your wallet, based on their fair market value.
- Receiving other incentives. Free crypto from promotions, referrals, or learn and earn programs must also be reported as income.
“But what if I’m just buying and holding Bitcoin for a while? How to file Coinbase taxes in that case?” – you, maybe.
Well, if you’re simply buying Bitcoin (or any other crypto, for that matter) and leaving it in your account, you don’t owe taxes… yet. The moment you sell, convert, or spend it, the taxman wakes up. At that point, any gains or losses become real and reportable.
And if you sell at a loss? Well, it can still work in your favor by offsetting other gains on your return and reducing your overall tax bill.
Looking for more in-depth information on related topics? We have gathered similar articles for you to spare your time. Take a look!
How to Report Coinbase on Taxes
Filing taxes isn’t anyone’s idea of fun. Thankfully, Coinbase makes it a little easier with its built-in Tax Center, which provides the reports and forms you’ll need. It won’t calculate every scenario or file your return for you, but it does cut down the time you’d otherwise spend piecing things together.
From there, you basically have two choices:
1
Manual reporting. Download your reports and IRS forms, then enter the numbers directly into your tax return yourself.
2
Automated reporting. Connect your Coinbase account to crypto tax software, which can merge your reports and fill in most of the details automatically.
Both paths get you to the same place. It just depends on whether you prefer a hands-on approach or want a tool to take care of the heavy lifting.
Let's learn how to do both!
Manual Reporting
Say you’re on a budget and don’t want to pay for tax software. You might be asking, “How do I report Coinbase on my taxes manually?”. Well, it’s totally possible as long as you’re willing to do a bit of paperwork and double-check your numbers.
Here are the general steps to point you in the right direction:
Save a copy of these forms. Even if you later use tax software, having the originals on hand makes it easier to verify your return.
- Missing cost basis defaults to $0 (or $1 for stablecoins). This makes it look like you got the asset for free, which can inflate your taxable gains.
- Unknown purchase dates default to the day assets landed in your account. That can incorrectly turn long-term holdings into short-term ones, raising your tax rate.
- Outbound transfers are treated as self-to-self. If that isn’t accurate, trades or sales may not be taxed properly.
- Transactions with missing info are flagged as “Cost basis source: not available”. These need manual edits; otherwise, they remain incomplete on your return.
Fixing these entries ensures your reports reflect reality. Once updated, Coinbase will mark them as “Customer provided”.
And that’s it! You’ve filed your Coinbase activity manually.
Automatic Reporting
If you’d rather skip the manual checks and edits, you can also learn how to calculate crypto taxes Coinbase accumulated automatically by linking your account to a tax calculator.
📚 Read More: Best Crypto Tax Calculators
Here's how to get it done:
Once created, copy the API Key and Secret Key and store them in a secure location, as you’ll need them for the import process.
Crypto tax calculators are helpful, but they’re not a replacement for professional advice. If your activity is large or complex (like DeFi, NFTs, margin trading, or significant staking income), it’s best to consult a tax professional.
Additional Coinbase Tax Details
So far, we’ve covered most of the basics on how to file Coinbase taxes, but there are a few extra details worth keeping in mind.
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Cost-Basis Accounting Methods
In the tax settings, you can select a cost-basis accounting method to determine how your gains or losses are calculated in both standard Coinbase and Coinbase Pro tax reports. This setting decides which assets are considered “sold” first when you trade, spend, or dispose of crypto.
Crypto cost basis is the total amount you paid to acquire a cryptocurrency, including the purchase price plus any associated fees.
Here are the cost-basis methods you’ll find in Coinbase crypto taxes:
Method | Explanation |
|---|---|
HIFO (Highest In, First Out) | You sell the assets with the highest original purchase price first. |
LIFO (Last In, First Out) | You sell the assets you most recently acquired first. |
FIFO (First In, First Out) | You sell the assets you acquired earliest first. |
Table: Coinbase accounting method
Make sure that you choose the method that best fits your strategy. Making the right choice early helps keep your reports consistent and makes calculating crypto taxes on Coinbase far less stressful.
It’s also important to stay consistent with what you used in previous tax years to avoid double taxation on the same capital gains.
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Coinbase Taxes for Non-US Customers
Cryptocurrencies are still considered emerging assets, and many countries are struggling to build effective tax frameworks. Tax treatment is often fragmented, enforcement is limited, and the rise of DeFi tools has introduced even more complexity.[2]
Some countries try to adapt traditional tax models, treating crypto like property, securities, or even foreign currency. But these approaches don’t always hold up well against the borderless nature of digital assets.
Despite the regulatory patchwork, though, most crypto taxes come down to a few common activities:
- Trading or exchanging digital assets;
- The total value of your digital asset holdings;
- Income earned through staking, mining, or airdrops.
Coinbase is built around US tax regulations. The IRS forms it generates (1099-MISC, 1099-B, or 1099-DA) generally don’t apply to non-US users. Still, you can download your transaction history and use it to meet your local tax obligations.
If you’re a non-US customer who has an account with Coinbase Inc., you may receive a Form 1042-S reporting US-sourced income paid to your account.
For example, if you’re filing Coinbase taxes Canada, your transaction history can help complete your CRA filing. The same applies elsewhere: your local tax authority decides which forms you need, but Coinbase gives you the data to start from.
Common Mistakes to Avoid
Many beginners assume the Coinbase tax reports cover every detail, only to end up filing with gaps or errors. The truth is, most issues come from the same few mistakes, and once you know what to watch out for, they should be easier to avoid.
Here are some of the most common pitfalls:
- Forgetting Coinbase Pro, Wallet, or Prime activity. The tax reports only cover transactions on the main platform. If you used Pro (before it shut down), be sure to download your Coinbase Pro taxes report while it’s still available. For Wallet and Prime, you’ll need to export those records separately to complete your full tax picture.
- Relying too much on assumptions. Coinbase fills missing data by guessing. Cost basis may default to $0, dates can reset to when assets hit your account, and outbound transfers are assumed to be self-to-self. If you don’t fix these, your gains may look larger than they really are.
- Forgetting outside exchanges. Coinbase only tracks what happens on its own platform. If you’ve traded on Binance or used an external wallet like Ledger, those records won’t show up. You’ll need to add that data manually or through a tax tool.
- Ignoring taxable income. It’s not just sales that matter. Staking rewards, mining income, airdrops, and referral bonuses are all taxable income and must be reported. Don’t overlook them!
- Misunderstanding holding VS taxable events. Simply holding Bitcoin or any other crypto in your Coinbase account isn’t taxable. Taxes only apply when you sell, convert, or spend.
- Assuming Coinbase files for you. Some users believe that since Coinbase generates IRS forms, no further action is needed. In reality, you’re still responsible for filing those forms correctly with your tax return.
By watching out for these common mistakes, you should be able to avoid filing gaps and keep your return accurate. A little double-checking now saves a lot of headaches later.
That said, the best advice I can give is don’t hesitate to consult a qualified tax advisor. Every tax situation is unique, and getting professional guidance can save you a lot of headaches down the line.
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Conclusions
Doing your Coinbase taxes doesn’t have to be overwhelming. The platform’s built-in tax center helps you gather reports, documents, and, in some cases, official forms, making it easier to organize your crypto activity.
That being said, Coinbase doesn’t handle everything for you. It won’t automatically calculate every tax scenario or file your return. You’re still responsible for double-checking the numbers, filling in any gaps, and ensuring everything is accurate.
The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.
Scientific References
1. Cui J., Gao L., Wang Y.: ‘The Impact of Cryptocurrency Exposure on Corporate Tax Avoidance Among US Listed Companies’;
2. Adhikari P., Hamal P., Adhikari B., Maskey N. K.: ‘Cryptocurrency Taxation and Regulatory Challenges’.
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