How do I read my Form 1099-DA?

The article below explains each section of your Form 1099-DA, the IRS tax form used to report digital asset transactions, which summarises your digital asset disposals for the tax year.

The numbered sections, corresponding to labels in the example image below, provide a detailed explanation of each part of the form.

1. Top Section: Account & Personal Information

Account Number: Your internal account reference with the broker.

Filer Details: The broker issuing the form (name, address, TIN).

Recipient Details: Your name, address, and Taxpayer Identification Number (TIN).

OMB Number: IRS administrative tracking number (not relevant for tax filing).

2. Summary Section (High-Level Totals)

This section provides totals grouped by IRS reporting category. Transactions are separated by Form 8949 reporting codes, such as:

Code H: Short-term transactions where cost basis was NOT reported to the IRS. Code G: Short-term transactions where cost basis WAS reported to the IRS.

For each category, you’ll see totals for:

Proceeds – Total amount received from sales
Cost or Other Basis – Original purchase cost
Accrued Market Discount – Applies to certain debt-like digital assets
Wash Sale Loss Disallowed – Loss that cannot be deducted
Net Gain (Loss) – Proceeds minus cost (after adjustments)
Federal Income Tax Withheld – Backup withholding, if applicable
State Income Tax Withheld – State-level withholding

3. Detailed Transactions Section

Each row represents one digital asset disposal.

Below are descriptions of the fields included in your Form 1099-D.

Identification Fields

Reportable Account Number: Internal transaction or account reference.

Digital Asset Code / CUSIP: Internal identifier for the digital asset sold.

Box 1a – Digital Token Code (DTIF): Standardized identifier for the digital asset.

Box 1b – Name of Digital Asset: The name of the token/asset sold.

Transaction Details

Box 1c – Number of Units Sold: How many tokens/coins were disposed of.

Box 1d – Date Acquired: When you originally obtained the asset.

Box 1e – Date Sold: When the asset was sold or disposed of.

Box 1f – Proceeds: Value received for the disposition (cash and/or FMV of property/digital assets received) Important: This does not automatically equal taxable gain.

Box 1g – Cost or Other Basis: Your original purchase cost.

Net Gain (Loss): Proceeds minus cost basis (and adjustments). Positive = gain Negative = loss

Adjustment & Special Rule Fields

Box 1h – Accrued Market Discount: Applies only if the digital asset is treated as a debt instrument for tax purposes.

Box 1i – Wash Sale Loss Disallowed: Loss that cannot be deducted due to wash sale rules (applies only if the asset qualifies under securities rules).

Box 5 – Loss Not Allowed Indicator: Indicates loss may not be deductible due to corporate actions.

Box 6 – Gain (Loss) Type: Short-term/Long-term and/or ordinary, per IRS definitions. Short-term = held 1 year or less**Long-term = held more than 1 year

IRS Reporting Indicators

Box 2 – Basis Reported to IRS: If checked, cost basis was reported to the IRS.

Box 3a – Reported to IRS (Net vs Gross Proceeds): Indicates whether proceeds were adjusted.

Box 3b – Qualified Opportunity Fund (QOF): Checked if the transaction involves a QOF.

Box 7 – Cash Indicator: Checked if only cash was received.

Box 8 – Customer Provided Basis: Indicates you supplied acquisition info used for basis reporting.

Box 9 – Noncovered Security: Checked when treated as noncovered (basis may be blank/not reported)

NFT-Specific Fields

Box 11a – Aggregate Reporting: Indicates aggregated stablecoin or NFT reporting.

Box 11b – Number of Transactions: Number of transactions included in aggregated reporting.

Box 11c – NFT Creator/Minter Proceeds: Gross proceeds from first sale of NFTs you created.

Transfer Information

Box 12a – Units Transferred In: Units transferred into the broker from another platform.

Box 12b – Date of Transfer: Date of inbound transfer.

Withholding & State Information

Box 4 – Federal Income Tax Withheld: Backup withholding amount (if applicable).

Boxes 14–16 – State Information: State abbreviation, State ID number, State tax withheld (if any)