Digital Assets

Official source

Digital assets are any digital representations of value that are recorded on a cryptographically secured distributed ledger or any similar technology. For example, digital assets include non-fungible tokens (NFTs) and virtual currencies, such as cryptocurrencies and stablecoins. If a particular asset has the characteristics of a digital asset, it will be treated as a digital asset for federal income tax purposes.

Check the “Yes” box next to the question on digital assets on page 1 of Form 1040 or 1040-SR if at any time during 2025, you (a) received (as a reward, award, or payment for property or services); or (b) sold, exchanged, or otherwise disposed of a digital asset (or any financial interest in any digital asset).

For example, check “Yes” if at any time during 2025, you:

Received digital assets as payment for property or services provided;

Received digital assets as a result of a reward or award;

Received new digital assets as a result of mining, staking, and similar activities;

Received digital assets as a result of a hard fork;

Disposed of digital assets in exchange for property or services;

Disposed of a digital asset in exchange or trade for another digital asset;

Sold a digital asset; or

Otherwise disposed of any other financial interest in a digital asset.

You have a financial interest in a digital asset if you are the owner of record of a digital asset, or have an ownership stake in an account that holds one or more digital assets, including the rights and obligations to acquire a financial interest, or you own a wallet that holds digital assets.

The following actions or transactions in 2025, alone, generally don’t require you to check “Yes.”

Holding a digital asset in a wallet or account;

Transferring a digital asset from one wallet or account you own or control to another wallet or account that you own or control; or

Purchasing digital assets using U.S. or other real currency, including through the use of electronic platforms such as PayPal and Venmo.

If you used a broker to effect the sale of a digital asset, your broker should send you Form 1099-DA. You must answer the digital asset question on Form 1040 whether or not you received a Form 1099-DA.

Do not leave the question unanswered. You must answer “Yes” or “No” by checking the appropriate box. For more information, go to IRS.gov/VirtualCurrencyFAQs .

Digital Assets

Official source

For example, check “Yes” if at any time during 2025, you:

Received digital assets as payment for property or services provided;

Received digital assets as a result of a reward or award;

Received new digital assets as a result of mining, staking, and similar activities;

Received digital assets as a result of a hard fork;

Disposed of digital assets in exchange for property or services;

Disposed of a digital asset in exchange or trade for another digital asset;

Sold a digital asset; or

Otherwise disposed of any other financial interest in a digital asset.

The following actions or transactions in 2025, alone, generally don’t require you to check “Yes.”

Holding a digital asset in a wallet or account;

Transferring a digital asset from one wallet or account you own or control to another wallet or account that you own or control; or

Purchasing digital assets using U.S. or other real currency, including through the use of electronic platforms such as PayPal and Venmo.

Do not leave the question unanswered. You must answer “Yes” or “No” by checking the appropriate box. For more information, go to IRS.gov/VirtualCurrencyFAQs .