How to Fill Out Form 8949 for Cryptocurrency in 2026

IRS Form 8949 is used to report sales, exchanges, and other dispositions of cryptocurrency and other digital assets held as capital assets. For each reportable transaction, you generally enter the asset, acquisition and disposal dates, proceeds, cost basis, adjustments, and resulting gain or loss.

For 2025 returns, the IRS added separate Form 8949 boxes specifically for digital assets. Short-term crypto transactions use boxes G, H, or I, while long-term transactions use boxes J, K, or L.

“We've seen many investors get stuck with the IRS 8949 tax form because they’re unsure how to list each transaction. Always maintain complete and organized records of every trade or sale. Whether you executed one NFT sale or multiple swaps on various exchanges, proper organization makes filing much smoother.”

- Ty Gaines, EA, Tax Expert at TokenTax

The table below lists out the differences between the two IRS forms.

In most cases, Form 8949 provides the transaction-level details, and Schedule D summarizes the totals. Certain transactions can bypass Form 8949 and go directly on Schedule D. To qualify, basis must have been reported to the IRS, the applicable Form 1099-B or Form 1099-DA cannot show the specified adjustments, the Ordinary box must be unchecked, no other adjustment can be required, and the transaction cannot involve the specified QOF situations. Qualifying short-term transactions go on Schedule D line 1a, while qualifying long-term transactions go on line 8a.

The forms you need depend on your crypto activity. Here are some of the most common forms and statements used for digital asset reporting.

You generally need Form 8949 if you sold, swapped, spent, or otherwise disposed of cryptocurrency that you held as a capital asset. That includes crypto-to-crypto trades and the use of crypto to buy goods or services.

There is an exception. Certain transactions that meet IRS requirements may be reported directly on Schedule D rather than on Form 8949.

Usually, but not always. Most crypto investors use Form 8949 to report individual dispositions and then transfer the totals to Schedule D. Certain transactions that meet the IRS requirements may be reported directly on Schedule D instead.

To complete Form 8949, you need accurate records of your reportable crypto disposals, including sales, swaps, spending, and other exchanges. Crypto-to-crypto trades can count even when no dollars are involved.

Step 1: Gather your crypto records

Gather records for every taxable crypto disposal during the year, including sales, swaps, spending, and other exchanges. Download transaction histories from exchanges and wallets and reconcile them with any Form 1099-DA or other tax forms you received.

Step 2: Enter transaction details

For each transaction, identify the digital asset and exact amount disposed of, when you acquired it, when you disposed of it, your proceeds, and your cost basis. The IRS also says to include the sale transaction ID in the description when it is available.

Step 3: Calculate your gain or loss

Subtract your adjusted cost basis from your proceeds to calculate the gain or loss. A digital asset held for one year or less generally produces a short-term gain or loss. An asset held for more than one year is generally long-term.

Step 4: Choose the correct digital asset box

Use the box that matches your holding period and whether you received Form 1099-B, Form 1099-DA, or a substitute statement, including whether basis was reported to the IRS.

Use Part I for short-term transactions and Part II for long-term transactions. The IRS says digital asset transactions should use G, H, or I in Part I and J, K, or L in Part II rather than the older C or F boxes used for other transactions.

Form 1099-DA is the broker reporting form for certain digital asset transactions. For 2025 sales, brokers generally report gross proceeds but are not required to report cost basis. For sales after 2025, basis reporting is required for certain covered digital assets.

A digital asset is generally covered if it was acquired after 2025 in a custodial account and remained there until the broker handled the sale. Assets transferred into a broker or acquired before 2026 are generally noncovered, so basis may not appear on Form 1099-DA. Different rules can also apply to qualifying stablecoins and specified NFTs reported under optional methods.

Reconcile any Form 1099-DA you receive with your own exchange and wallet records. If basis is missing, you still need to determine the correct basis when preparing your return.

Certain transactions can be reported directly on Schedule D rather than on Form 8949, but several conditions must be met. Basis must have been reported to the IRS; Form 1099-DA cannot show adjustments in boxes 1h or 1i; the Ordinary box in box 6 must be unchecked; no other adjustment is required; and the transaction cannot involve the specified qualified opportunity fund situations. Qualifying short-term transactions go on Schedule D line 1a, while qualifying long-term transactions go on line 8a.

Once you’ve completed Form 8949, file it with Schedule D as part of your federal income tax return. If you e-file and report the transactions electronically, your tax software generally includes the required Form 8949 information with your return.

If you use attached statements instead of reporting each transaction separately on the electronic return, additional filing steps may apply. For a paper return, include Form 8949 with Schedule D, and keep supporting records, such as exchange histories and wallet statements, in case the IRS requests them.

Individuals generally use Schedule D to report capital gains and losses, including those from cryptocurrency held as a capital asset. If you sold, swapped, or spent crypto and realized a capital gain or loss, the transaction generally flows to Schedule D either through Form 8949 or, for certain qualifying transactions, directly on Schedule D.

You can download current versions of both Form 8949 and Schedule D from the official IRS website. Be sure to select the correct tax-year edition, since these forms can change annually. If you use a professional tax prep service or software, these forms may also be included or generated automatically.

Form 8949 uses eight columns to report the details of each crypto disposal, including dates, proceeds, cost basis, adjustments, and the resulting gain or loss.

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• Using the wrong Form 8949 boxes: For digital asset transactions, use boxes G, H, I, J, K, or L depending on the holding period and whether the transaction was reported on Form 1099-B, Form 1099-DA, or a substitute statement.

• Treating Form 1099-DA proceeds as profit: Proceeds are not the same as taxable gain. You generally still need cost basis to calculate the result.

• Missing crypto-to-crypto trades: Swapping one digital asset for another can be a reportable disposal even if no dollars are received.

• Using the wrong holding period: Assets held one year or less are generally short-term; assets held more than one year are generally long-term.

• Missing wallet or exchange history: Incomplete transaction records can leave you without the basis needed to calculate gains and losses.

• Ignoring adjustments: Incorrect broker basis and other IRS-required adjustments can require entries in columns (f) and (g).

TokenTax imports transaction history from supported exchanges and wallets, calculates gains and losses, separates short-term and long-term transactions, and generates Form 8949 data for tax filing. We can also help reconcile your transaction history with the information on your Form 1099-DA.

Pro tip
Want a quick look at potential or realized crypto capital gains for one of your trades? Calculate your crypto gains with our free crypto profit calculator.