Gemini does not provide tax advice. The information below is provided for general purposes only and should not be considered tax advice. This information is based on U.S. Internal Revenue Service (“IRS”) guidance received to date, which may continue to evolve and change. Please consult a tax advisor to determine your personal tax obligations that result from your activities on Gemini, including dispositions, earnings, and rewards.

Updated U.S. tax reporting regulations require Gemini to report proceeds from sales of digital assets on Form 1099-DA starting January 1, 2025. Reporting is required annually, with recipient statements delivered to customers by February 15 to report prior year sales, as well as IRS e-file delivery after recipient statements are issued. 

Sales of digital assets will be reported to U.S. customers on an itemized basis. 2025 reporting to the IRS will include proceeds only. Sales of “covered” assets will include cost basis reporting starting in 2026, to show a gain or loss for those sales. Covered assets are assets purchased in a customer’s Gemini account after 1/1/2026. 

Customer Form 1099-DA recipient statements will include gain/loss information that is not reported to the IRS. The gains/losses will be determined using the basis of assets that were 1) purchased and held on the exchange, 2) acquired on the exchange but not purchased (for example, credit card rewards), or 3) transferred into the exchange with customer-provided basis information. If there are transferred assets in the account that the customer has not provided basis information (acquisition cost and date) for, Gemini will not be able to provide gain/loss information for the sale of those assets. 

Information included on the customer Form 1099-DA recipient statement that is not reported to the IRS will be clearly marked. Gain/loss information that is provided on customer statements that is indicated as not provided to the IRS is not required to be used for your U.S. tax filings. Customers can rely on their own calculations for gain/loss reporting on their U.S. tax return for 2025. 

Gemini offers customers the ability to select an accounting method for sales made in the account. Method adjustments are made in real time. If you have not selected a method for your account, the default method of First In First Out (fifo) is applied to your sales. If you would like to change your method, you may do that and the new method will be applied to all sales after the selection is made. You may change your method as frequently as you would like. Changes will be applied to all future transactions. To update your method go to: Settings > Statement and taxes > Taxes> Cost basis method. 

Form 1099-MISC will still be issued to report income from staking, refer-a-friend awards, and rewards on stablecoins. 

Forms 1099-DA and MISC will be issued using the Name and Taxpayer ID number on your account. If you need to update that information please submit a Form W-9. If you are not a U.S. person and need to certify your foreign status please submit a Form W-8. Information certified on these forms will be used to determine your Form 1099 eligibility. To access these forms go to: Settings > Statement and taxes > Taxes > IRS Forms. 

More information from the IRS on the Form 1099-DA: https://www.irs.gov/businesses/understanding-your-form-1099-da

Sample Form 1099-DA with recipient instructions: 

https://taxbitsupport.zendesk.com/hc/en-us/article_attachments/40727782683149