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PayPal outlines new tax reporting requirements for crypto users
Source: CryptoNewsNet Original Title: PayPal outlines new tax reporting requirements for crypto users Original Link: PayPal today confirmed that crypto users must report taxes using IRS Form 1099-DA, which the digital payments platform will send to users by Feb. 15 each tax year.
Beginning with tax year 2025, PayPal is required to report proceeds from digital asset dispositions to the IRS on Form 1099-DA. The form covers transactions including sales or exchanges of crypto assets and PYUSD, PayPal’s stablecoin.
Users who sold or exchanged crypto in their PayPal wallet during the applicable tax year will receive the form automatically.
The IRS introduced Form 1099-DA to standardize reporting of digital asset transactions, requiring brokers to track and report crypto gains or losses.
PayPal also issues Form 1099-MISC for crypto bonuses, prizes, or awards exceeding $600 in tax year 2025. That threshold increases to $2,000 for tax year 2026, with inflation adjustments beginning in 2027.
Users who receive crypto payments for goods and services above annual thresholds will receive Form 1099-K by Jan. 31.