If you've tried using Coinbase's built-in tax reports, you know the frustration: missing transactions, incomplete cost basis calculations, and no tracking for DeFi or wallet transfers. What looks like a simple "download your tax report" button quickly becomes a nightmare when the IRS wants every detail.
The truth? Coinbase's tax reports are designed to show Coinbase transactions only. If you've sent Bitcoin to your wallet, swapped on Uniswap, earned staking rewards on other platforms, or done literally anything beyond buying and selling on Coinbase itself, their reports won't capture the complete picture.
This guide shows you the easy way: how to generate a complete, IRS-ready tax report in about 15 minutes using Koinly, a crypto tax software that actually works.
The IRS deadline is April 15, 2026. Don't wait until the last minute. Crypto taxes are complex, and rushing leads to mistakes that can cost you thousands in penalties. Start now while you have time to do it right.
Let's be clear: Coinbase provides tax documents. They send you Form 1099-MISC if you earned over $600 in rewards, and Form 1099-K if you're a high-volume trader. But these forms have major limitations.
The IRS requires you to report the cost basis (what you paid) for every crypto transaction. When you buy on Coinbase, send to MetaMask, swap for another token, then send back to Coinbase to sell, Coinbase only sees the buy and the sell. Everything in the middle? You're on your own.
Example scenario:
Coinbase's report will show you bought 1 ETH for $2,000 and sold 0.5 ETH for $2,600. But what about that Uniswap swap? The IRS considers that a taxable sale of 0.5 ETH, and you owe taxes on the $250 gain ($1,250 - $1,000). Miss that, and you're underreporting income.
Quick stat: The IRS estimates that only 0.04% of tax returns report cryptocurrency transactions. They're actively hunting for underreporting, with penalties ranging from 20% of underpaid taxes to criminal prosecution for willful evasion. Don't risk it.
To properly report crypto taxes, you need:
Manually tracking all of this across multiple exchanges, wallets, and DeFi protocols? That's hundreds of hours of work (and almost impossible to get right).
This is where Koinly comes in. It's crypto tax software that does the heavy lifting for you:
Instead of spending weeks manually entering transactions into spreadsheets, Koinly does it in 15 minutes. You connect your accounts, it syncs everything, and you download your tax report.
Import unlimited transactions. Only pay when you're ready to download your report.
Try Koinly FreeNo credit card required • Works with 700+ exchanges
Here's exactly how to do it:
Go to Koinly and create a free account. You can import unlimited transactions for free; you only pay when you're ready to download your final tax report.
Pricing (only pay when downloading report):
Don't worry about choosing a plan yet. Sign up free, import everything, and only pay when you're ready to download.
Koinly offers two ways to import Coinbase transactions:
This is the easiest and most secure method. API connections sync automatically and update in real-time.
Koinly will now automatically import all your Coinbase transactions. This usually takes 1-2 minutes.
Only give Koinly "view" permissions. Never enable trading or withdrawal permissions on API keys used for tax software. This ensures your funds stay safe even if the API key is compromised.
If you prefer not to use API, you can manually download CSV files from Coinbase:
Note: CSV uploads won't auto-sync. You'll need to manually re-upload each time you make new transactions.
This is the crucial step Coinbase can't do for you. If you've used any other platforms, add them all:
For each wallet, click "Add wallet" in Koinly, select the platform, and connect via API or paste your public address. Koinly will scan the blockchain and import all transactions automatically.
The #1 reason people underreport crypto taxes is forgetting about wallets or exchanges. Even if you only used a platform once to claim an airdrop, add it. The IRS wants a complete picture, and Koinly makes it easy to import everything.
Once everything is imported, Koinly automatically calculates your gains, losses, and income. But you should review for accuracy:
Transfers between your own wallets aren't taxable events. Koinly usually identifies these automatically, but if not:
Once everything looks correct, generate your report:
Koinly will show you:
Review everything. If it looks right, purchase the plan that matches your transaction count and download your report.
Complete, accurate crypto tax reports in minutes, not weeks.
Get Started with KoinlyFree to import • Pay only when downloading
You have two options:
Download your Koinly report and use tax software like TurboTax, H&R Block, or FreeTaxUSA. Most support importing Form 8949 directly from CSV.
In TurboTax:
If your crypto taxes are complex (lots of DeFi, mining, NFTs), hiring a crypto-specialized CPA might be worth it. They charge $500-2,000 but can find deductions you miss and handle audits if they arise.
Give your CPA the Koinly report. They'll appreciate having clean, organized data instead of trying to piece together spreadsheets and exchange exports.
Coinbase sends 1099 forms to both you and the IRS. Here's what each means:
You'll receive this if you earned $600 or more in rewards, staking, or referrals on Coinbase. This income is reported in Box 3 ("Other Income") and is taxed as ordinary income at your normal tax rate.
Important: Even if you didn't receive a 1099-MISC (because you earned under $600), you still must report the income. The IRS requires reporting all income, even $1.
High-volume traders receive this if they have:
This form shows your gross transaction volume, not your taxable gains. It's basically saying "this person moved a lot of money." You still need to calculate actual gains/losses via Form 8949.
Starting in 2026, Coinbase (and other exchanges) may begin issuing Form 1099-B, which shows cost basis for each transaction. This is similar to what stock brokers send. However, as of early 2026, most crypto exchanges don't issue 1099-B yet, so you're responsible for tracking cost basis yourself (hence why Koinly is essential).
Getting a 1099 from Coinbase does NOT mean your taxes are done. These forms show income or gross transactions but don't calculate your actual tax liability. You still need Form 8949 showing every transaction with cost basis. Don't just file a 1099 and call it done; that's how you get audited.
Every swap, liquidity provision, and yield farming action on DeFi protocols like Uniswap, Aave, and Curve is a taxable event.
Examples:
Koinly automatically tracks DeFi transactions by monitoring your wallet address on-chain. It knows when you swapped, what you received, and calculates cost basis.
Buying, selling, or trading NFTs is treated like any other crypto transaction:
Koinly supports NFT tracking via wallet connections. It will import your OpenSea, Rarible, and other marketplace transactions automatically.
Rewards from staking or mining are ordinary income taxed at your normal rate when received. Later, when you sell the coins, you pay capital gains based on the difference between the value when received vs when sold.
Example:
Koinly categorizes staking and mining automatically, calculating both income and capital gains.
Tokens received from airdrops or hard forks are ordinary income at the fair market value when received. If you later sell them, you'll also owe capital gains.
Koinly detects airdrop transactions in your wallet and marks them as income.
The IRS lets you choose how to calculate cost basis:
Koinly lets you select your method. Most people use FIFO (default) or HIFO (to minimize taxes). You can even run reports with different methods to see which saves you the most.
If you bought Bitcoin at multiple prices throughout the year, HIFO can significantly reduce your tax bill by selling the most expensive coins first. Run reports with both FIFO and HIFO in Koinly and choose whichever is better. You're allowed to pick, and it's completely legal.
Bought $20 of Bitcoin? Still taxable. The IRS wants every transaction reported, no matter how small. There's no "de minimis" exception for crypto.
That $15 in ETH staking rewards? Ordinary income. People often forget to report these because they seem insignificant, but the IRS has your 1099-MISC showing them.
Sending Bitcoin from Coinbase to your Ledger isn't taxable. But if you forget to track it, Koinly (or your CPA) might think you sold it, creating phantom gains. Always mark transfers correctly.
If you transferred crypto to Coinbase that you bought elsewhere, Coinbase doesn't know what you originally paid. You must add this manually or risk overpaying taxes.
Crypto taxes are complicated. Waiting until the last minute means you'll rush, make mistakes, and possibly miss deductions. Start now, even if you haven't filed yet; you can always amend later if needed.
The IRS can audit you up to 3 years back (or 6 years if they suspect fraud). Keep records of all transactions, wallet addresses, exchange exports, and Koinly reports. Store them somewhere safe like Google Drive or an encrypted hard drive.
Let's break down the actual costs:
| Plan | Transactions | Price | Best For |
|---|---|---|---|
| Newbie | Up to 100 | $49 | Casual buyers |
| Hodler | Up to 1,000 | $99 | Regular DCA investors |
| Trader | Up to 3,000 | $179 | Active traders |
| Pro | Up to 10,000 | $279 | High-volume traders |
Remember: You can import and preview everything for free. Only pay when you're ready to download the final report.
Compare $49-279 to:
Koinly saves time, reduces errors, and often finds deductions that save more than the cost of the software itself.
See exactly what you owe before paying anything.
Try Koinly FreeImport unlimited transactions • Pay only when downloading
While Koinly is our top recommendation, here are other options:
We prefer Koinly because it supports the most platforms (700+), has the best UI, and handles edge cases like DeFi and NFTs automatically. But if you've used another tool and are happy with it, stick with what works.
Yes. Coinbase sends Form 1099-MISC (for rewards over $600) and Form 1099-K (for high-volume traders) to both you and the IRS. The IRS knows you have a Coinbase account and expects you to report all transactions, not just the ones on the 1099.
If you only bought and held (no sales, swaps, or spending), you don't owe capital gains tax. However, you must report any income like staking rewards, airdrops, or mining. And the IRS added a question to Form 1040 asking if you received, sold, or exchanged crypto; you must answer truthfully even if you only held.
The IRS can assess penalties of 20-75% of unpaid taxes plus interest. In extreme cases (willful evasion), it's a federal crime with potential prison time. Don't risk it. The IRS is actively pursuing crypto tax enforcement and has data from exchanges.
Yes. Capital losses offset capital gains dollar-for-dollar. If your losses exceed gains, you can deduct up to $3,000 per year against ordinary income. Remaining losses carry forward to future years. This is called "tax-loss harvesting" and is completely legal.
You can file amended returns (Form 1040-X) for up to 3 years back. If you missed reporting crypto in previous years, it's better to amend voluntarily than wait for the IRS to catch it. Koinly supports importing historical data so you can catch up on past years.
Yes. Every crypto-to-crypto trade is a taxable event. Swapping BTC for ETH is treated as selling BTC (taxable) and buying ETH. The IRS eliminated the "like-kind exchange" loophole for crypto in 2018.
Lost or stolen crypto can be claimed as a casualty loss under certain conditions, but it's complex and requires documentation. Consult a CPA specializing in crypto. You can't just write off losses from forgotten passwords without proof.
Yes. The IRS allows you to choose your cost basis method (FIFO, LIFO, HIFO, or Specific ID). HIFO often minimizes taxes by selling the most expensive coins first. Once you choose a method, you must use it consistently, but you can change methods for future years.
Don't wait until April. The IRS deadline is April 15, 2026, but smart crypto investors file early to avoid the rush and last-minute stress.