Every Form 1040 filer has to check a box answering yes or no to the digital asset question — whether or not they've ever touched crypto. Here's what actually triggers a yes, and what doesn't.

Form 1099-DA first reports 2025 digital-asset gross proceeds during the 2026 filing season. Basis reporting begins for certain covered digital assets acquired on or after January 1, 2026.

Mining and staking rewards generally create ordinary income when the taxpayer has dominion and control. Their fair market value becomes basis, and a later sale, exchange, or spending transaction creates a separate gain or loss calculation.

Section 1091 generally applies to losses on stock or securities. Many digital assets held as property fall outside that rule under current federal tax law, but the asset, transaction, related-party, straddle, and documentation rules still matter.

A direct gift of appreciated cryptocurrency may avoid recognition of gain, but the charitable deduction depends on holding period, basis, recipient type, contribution limits, acknowledgment, Form 8283, and often a qualified appraisal.

Cryptocurrency compensation is measured in U.S. dollars when paid. Employee wages remain subject to payroll reporting and withholding, contractor reporting uses the applicable 2026 threshold, and the payer may recognize gain or loss on transferred crypto.