Crypto Tax Checklist: What You Need to Know Before Filing

When you buy, sell, or trade cryptocurrency, digital assets like Bitcoin or Ethereum that operate on decentralized networks. Also known as crypto, it isn’t just a investment—it’s a taxable event in most countries. The IRS and other tax agencies treat crypto like property, not currency. That means every trade, every sale, even every gift or airdrop, could create a tax liability. If you’ve moved crypto between wallets, sold it for fiat, or earned rewards from staking, you’re already in tax territory—whether you realize it or not.

A crypto tax checklist, a step-by-step guide to tracking and reporting cryptocurrency transactions for tax compliance. Also known as crypto reporting checklist, it’s not optional if you want to avoid audits or fines. You need to record the date, type, amount, and fair market value in USD for every transaction. This includes buying BTC with fiat, swapping ETH for SOL, earning interest from DeFi protocols, or receiving crypto as payment. Many people forget that even swapping one coin for another is a taxable sale. Your cost basis matters—what you paid for it—and your proceeds matter—what you sold it for. The difference is your capital gain or loss. Tools like Koinly, CoinTracker, or ZenLedger help automate this, but you still need to verify the data. Don’t rely on exchange summaries alone—they often miss transfers, gas fees, or non-cash events.

Staking rewards and mining income are treated as ordinary income, taxed at your regular rate when you receive them. Airdrops? Also income. Lost or stolen crypto? You might be able to claim a loss, but the rules are strict. If you donated crypto to charity, you can deduct its fair market value—but only if you held it over a year. And yes, you have to report it even if the exchange didn’t send you a 1099. Most platforms don’t report small transactions, but the IRS doesn’t care about that. They’re getting data from exchanges, and they’re cross-checking bank deposits. Missing one transaction can trigger a notice. The blockchain taxation, the application of tax laws to transactions recorded on public ledgers like Bitcoin or Ethereum. is evolving, but the core principle stays the same: if you profited, you owe tax. No gray area.

You’ll find real examples in the posts below—from how to track DeFi earnings to what happens when you cash out after a bull run. These aren’t theory pieces. They’re written by people who’ve filed, got audited, or helped others do it right. You’ll learn what actually matters on your tax form, what tools work, and what traps to avoid. No fluff. No jargon. Just what you need to get through tax season without panic.