On July 9, 2024 the IRS unveiled its final regulations regarding cryptocurrency reporting, and Robinhood has implemented these guidelines.

Generally, per IRS guidelines, virtual currency is treated as property and general tax principles applicable to property transactions apply to transactions using virtual currency. When you sell virtual currency, you must recognize any capital gain or loss on the sale, subject to any limitations on the deductibility of capital losses. If you sold crypto or received rewards of $600 or more in the tax year, you will receive a Form 1099-DA or 1099-MISC, respectively from Robinhood for this tax season.

Robinhood doesn’t provide tax advice and you should consult a tax professional regarding any specific questions you have regarding taxes owed in connection with crypto transactions.

IRS Form 1099-DA is a new form introduced to report digital assets (DA), including crypto, beginning with transactions on or after January 1, 2025. This form replaces the 1099-B as the form used to report dispositions of digital assets in certain sale or exchange transactions.

What to expect in 2025

• Similar to what was reported on the 1099-B, only gross proceeds will be reported to the IRS, while gross proceeds and cost basis (where available) will be reported to you.
• If you enter cost basis information in-app for any transferred crypto, all tax lots for that crypto will be marked as “customer-provided.”
• Designated sales of qualifying stablecoins will be reported on an aggregated basis. This means that sale proceeds of each qualifying stablecoin will be reported once the sum of the sale proceeds of all qualifying stablecoins exceeds $10,000.
• If you received $600 or more in rewards, they’ll be included on Form 1099-MISC and are reported to the IRS.

What to expect in 2026

• Gross proceeds and cost basis will be reported to both the IRS and you.
• Cost basis reporting would include transfers of crypto assets.

Check out the following sources for official IRS guidance on digital currencies:

• Final regulations and related IRS guidance
• About Form 1099-DA, Digital Asset Proceeds From Broker Transactions

Cost basis is used to calculate capital gains taxes, and it’s typically the amount that you paid when buying an asset or the value determined at the time of receipt or transaction.

To help file your tax returns, we’ll provide the cost basis information (if available). Availability depends on where you acquired the crypto:

• If purchased through Robinhood, we have and will provide the cost basis information.
• If received from Robinhood as a reward, we’ll use a cost basis calculated as the fair market value at the time of receipt.
• If purchased at a different provider and transferred to Robinhood, we won’t have the cost basis because this information isn’t sent when transferring crypto. However, you can enter your cost basis manually by following the steps in Manual cost basis entry.

In instances where we don’t have the cost basis, it’s your responsibility to calculate and report the proper cost basis on your tax return.

When you sell or withdraw crypto, tax lots will be closed using the First in, First out (FIFO) valuation method. This means the first coins you acquire (either through deposits or purchases) are used first (either through sales or withdrawals). An exception to this rule is when you have tax lots with a cost basis of zero (0) (i.e., from transfers into Robinhood). In this case, tax lots with an unknown or zero (0) cost basis will be closed first before applying the FIFO methodology.

If some of your crypto deposits are missing cost basis information, you’ll see a message under History with the deposits listed under Missing details. Follow the steps to update it manually:

1. Select the deposit
2. Under Cost basis, select View details → Add cost basis
3. Enter the Purchase date, Coin quantity, and Total cost (including fees)
4. Select Save → Done

If the deposit includes more than one purchase, add each one separately. Your tax lots, profit and loss, and average cost may take up to 1 business day to update.

Keep in mind that Robinhood will perform a general verification on the information entered versus the market data available for that crypto and date.

A reportable 1099 transaction may occur for a merge or hard-fork, there's a protocol change, and you receive a new cryptocurrency. However, there were no merge or hard-fork events for this tax year for any of the coins we support.

The year-end cutoff for crypto trades with Robinhood Crypto, LLC is 11:59 PM UTC (6:59 PM ET) on December 31 for this tax year.

Robinhood doesn’t provide tax advice. For specific questions, you should consult a tax professional.