Introduction
Everyone makes profits in crypto these days, but when it comes to taxes, people get confused . If you use Crypto.com, crypto.com tax reporting is very helpful. This feature automatically tracks your trades and tells you how much crypto tax you owe on investment profits.
According to crypto government regulations, you have to pay crypto capital gains tax USA if you sell coins or earn a profit. With Crypto.com 1099 form tax and reporting tools, tax filing is now simple and stress-free. Also I will Guide how to pay tax on crypto assets
In this blog, we will take a step-by-step look at how to pay taxes on crypto assets and properly report your crypto profits.
Understanding Crypto Taxes — The Basics
If you’ve earned profits in crypto, it’s important to understand how the government treats it for tax purposes. Cryptocurrency is considered “property” in the USA, not currency. This means you’ll need to report your profits under the USA’s crypto capital gains tax rules.
Two things are important to note here:
Income vs. Capital Gains – If you bought and sold crypto for a profit, it falls under capital gains. If you earn staking rewards or airdrops, it falls under income tax.
Short-term vs. Long-term Gains – If you held crypto for less than a year and earned a profit, you’ll be taxed as short-term capital gains. If you held more than a year, you’ll be taxed at the long-term capital gains rate, which is usually lower.
Example Table: Crypto Activity vs Tax Type
| Crypto Activity | Tax Type | Example |
| Buying & Holding | Not Taxable | BTC hold for 6 months |
| Selling at Profit | Capital Gains | Sell BTC for USD |
| Staking / Rewards | Income Tax | ETH staking rewards |
An important point here: crypto.com tax reporting automatically tracks all your transactions, keeping your records clear and making tax filing easy.
Without this basic understanding, you can easily make mistakes like incorrect profit calculations or not reporting 1099 forms. So the next step is to understand how the Crypto.com 1099 form tax and reporting tools work.
Crypto.com Tax Reporting — How It Works
The easiest way is to use the crypto.com tax reporting tool. It automatically tracks all your trades, deposits, withdrawals, and staking rewards. The advantage is that you can easily see how much crypto tax is due on investment profits and how to report them.
H3: Downloading the Crypto.com 1099 Form
Crypto.com issues you a 1099 tax form annually if you are a US user.
This form records your total gains/losses and taxable income.
This form must be submitted to the IRS; otherwise, compliance issues may arise.
Pro tip: Regularly check reports and TXIDs to ensure your filing is accurate and avoid future problems.
Downloading the 1099 Form from Crypto.com
The most important part of your tax filing is downloading the Crypto.com 1099 form. This form provides a record of all your trades, profits, losses, and staking rewards, which must be submitted to the IRS.
The steps are simple:
- Log in to the Crypto.com app or website.
- Go to the Tax Reports section.
- Select your year and click Download 1099 Form.
- Safely save the file and upload it to your accountant or tax software.
Pro tip: When downloading the form, make sure all transactions are accurately reflected—if any are missing, check the crypto.com tax reporting report and resolve discrepancies.
Read Also : How to Withdraw Crypto Investment Profit On-Chain: A Simple Guide
How to Pay Tax on Crypto Assets
The most important step is understanding how to pay taxes on crypto assets. With Crypto.com’s 1099 tax form and transaction reports, filing becomes quite easy.
Follow these simple steps:
- Gather All Reports – Download all transactions and crypto.com tax reporting reports from Crypto.com.
- Calculate Profit & Loss – Calculate the profit for each coin, whether BTC or ETH.
- Use Tax Software or Manual Filing – Use TurboTax, CoinTracker, or a manual spreadsheet.
- Submit to IRS – File according to short-term or long-term capital gains.
Pro Tip: If your profits come from multiple exchanges, combine all reports. This step is important for crypto tax on investment profit.
Crypto Tax on Investment Profit — Example Calculation
Assume you bought 1 BTC in 2025 for $20,000 and sold it in 2026 for $25,000. Your profit is $5,000. This is the taxable amount for crypto tax on investment profits.
Step 1: Identify Holding Period
If BTC held for less than 1 year → Short-term capital gains.
If held for more than 1 year → Long-term capital gains.
Step 2: Calculate Tax
Short-term gains → Regular income tax rate (10–37%).
Long-term gains → 0–20% based on income bracket.
| Profit ($) | Holding Period | Tax Rate (%) | Tax Owed ($) |
| 5,000 | Short-Term | 25 | 1,250 |
| 5,000 | Long-Term | 15 | 750 |
Pro Tip: Crypto.com Tax Reporting tracks all your trades, so manual calculations reduce errors and simplify filing.
Avoiding Common Crypto Tax Mistakes
See, when it comes to crypto.com tax reporting and filing, even small mistakes can become major issues. You not only have to calculate profits, but also ensure that everything is reported according to IRS regulations.
1. Ignoring Small Transactions
Many people ignore small trades, thinking, “What tax do I have to pay?” But the IRS tracks everything—all gains, whether large or small, must be reported.
2. Missing 1099 Form
If you haven’t downloaded the crypto.com 1099 tax form, your tax filing will include incomplete data. This could be a red flag for the IRS. 3. Mixing Personal & Investment Wallets
People often mix up their trading wallet and personal wallet. This mistake creates confusion in profit/loss tracking.
4. Not Reporting Staking Rewards
Rewards from staking fall under the “income tax” category, in addition to crypto tax on investment profits. These must be reported separately.
5. No Record Keeping
Always keep your TXID, screenshots, and crypto.com tax reporting reports safe—this proof will be useful if the IRS audits.
Pro Tip: Check your profits every quarter, not at the end of the year. This will allow you to plan your taxes timely and avoid extra penalties.
Tools and Resources for Accurate Crypto Tax Filing
Filing crypto taxes manually is difficult these days—tracking so many trades, exchanges, and wallets is no easy task. Therefore, it’s best to use crypto.com tax reporting and trusted tools to automatically sync everything.
1. Crypto.com Tax Tool
Crypto.com’s built-in reporting system is the easiest. It automatically tracks your crypto taxes on investment profits, withdrawals, and transfers. All reports are downloadable and ready in IRS format.
2. CoinTracker / Koinly / ZenLedger
These tools integrate directly with Crypto.com 1099 form tax data. All you need to do is link your account, and this software automates the calculation of profit, loss, and how to pay taxes on crypto assets.
3. IRS & Official Guidelines
Crypto tax rules are updated periodically. The latest rates and instructions for crypto capital gains tax in the USA are available on the IRS’s official website—it’s best to check them before filing.
4. Spreadsheet Tracking
If you prefer to work manually, you can maintain your trade and tax records in Excel or Google Sheets.
Pro Tip: Consult a professional tax advisor for filing. Showing them your crypto.com 1099 form tax and annual reports ensures 100% accurate filing and reduces audit risk.
Conclusion — Stay Compliant and Stress-Free
Look, earning profits in crypto is an achievement, but properly reporting and paying taxes on those profits is equally important. If you use crypto.com tax reporting, the entire process becomes simple and transparent.
Whether it’s crypto tax on investment profits or how to pay taxes on crypto assets, proper documentation makes everything clear. For USA users, it’s mandatory to follow crypto capital gains tax USA rules and download the Crypto.com 1099 tax form—this keeps your financial records safe and accurate.
Just remember: tax planning is as important as trading smartness. The more disciplined you are in filing, the more secure and stress-free your crypto journey will be.
FAQs on Crypto.com Tax and Crypto Profits
Q1: Do I have to pay tax only when I withdraw crypto investment profit?
No. Tax applies when you sell, trade, or convert your crypto. Withdrawal is just a transfer. Whether you keep money on the exchange or move it to your bank, the taxable event already happened when you sold or traded.
Q2: What is the Crypto Capital Gains Tax in the USA?
In the USA, crypto gains are taxed in two ways:
Long-term gains: If you hold for more than 1 year, the tax rate is lower (0%–20%).
Short-term gains: If you hold crypto for less than 1 year, tax is charged at your income tax rate (usually higher).
Q3: What is the Crypto.com 1099 form tax?
It’s a tax document that reports your earnings. Crypto.com sends it both to you and to the IRS. It shows how much profit you made, and ignoring it can lead to trouble with tax authorities.
Q4: How to pay tax on crypto assets step by step?
Keep records of all your buy, sell, and convert transactions.
Use the Crypto.com tax tool to generate reports.
Calculate short-term and long-term gains separately.
File taxes directly with the IRS or get help from a tax consultant.
Always keep backup copies of your reports for audits.
