January Crypto Tax Checklist 2026
✍️ Author Information
Written by: Davit Cho
Crypto Tax Specialist | CEO at JejuPanaTek (2012~) | Patent Holder (Patent #10-1998821)
7+ years crypto investing experience since 2017 | Personally filed crypto taxes since 2018
Contact: davitchh@gmail.com
Blog: legalmoneytalk.blogspot.com
Last Updated: December 24, 2025 | Fact-Checked: Based on IRS Publications & Official Guidelines
π Table of Contents
January is the most critical month for crypto tax preparation. The actions you take now directly determine whether tax season becomes a stressful nightmare or a smooth, organized process. Most investors wait until April and scramble to piece together a year's worth of transactions under deadline pressure.
In my experience, investors who complete their crypto tax prep in January save an average of 10-15 hours compared to those who wait until March or April. Early preparation also catches errors and missing data while there's still time to request records from exchanges or reconstruct lost transactions.
This week-by-week checklist breaks down everything you need to accomplish in January 2026. Follow this systematic approach and you'll enter February with complete, accurate records ready for tax filing or handoff to your CPA.
π January 2026 Key Dates
π΄ January 15: Q4 2025 Estimated Tax Payment Due
π§ January 31: Exchanges issue 1099 forms
π 2026: New Form 1099-DA reporting begins
π January Goal: Complete all 2025 record gathering
π Week 1: Gather All Transaction Data
The first week of January focuses entirely on collecting every piece of transaction data from 2025. This foundation step is critical because missing transactions lead to incorrect cost basis calculations, understated gains, and potential IRS audit triggers.
Start with centralized exchanges where you likely have the most transaction volume. Log into Coinbase, Kraken, Gemini, Binance.US, and any other platforms you used during 2025. Navigate to the tax or reports section and export complete transaction histories in CSV format.
Name files clearly with the exchange name and year: "Coinbase_2025_Transactions.csv" or "Kraken_2025_Full_History.csv". Store all exports in a dedicated folder on your computer and back up to cloud storage immediately. Exchange data can become unavailable without warning.
DeFi transactions require additional effort since they don't appear on centralized exchange reports. Connect your wallet addresses to aggregators like DeBank, Zapper, or Zerion to view your complete DeFi history. Export transaction lists for each chain including Ethereum, Arbitrum, Base, Solana, and others you used.
π Week 1 Data Collection Checklist
| Source | Data to Export | Where to Find | Priority |
|---|---|---|---|
| Coinbase/Coinbase Pro | Full transaction history | Settings > Taxes | Day 1 |
| Kraken | Ledger export (all trades) | History > Export | Day 1 |
| Gemini | Transaction history CSV | Account > Statements | Day 2 |
| DeFi Wallets | All chain transactions | DeBank, Zapper, Etherscan | Day 3-4 |
| NFT Marketplaces | Buy/sell history | OpenSea, Blur profiles | Day 5 |
| Mining Pools | Payout records | Pool dashboard | Day 5 |
| Staking Platforms | Reward history | Platform reports | Day 6 |
Source: IRS Notice 2014-21 | Complete transaction records required for accurate reporting
Don't forget hardware wallet transactions. Check your Ledger Live or Trezor Suite history, but remember these only show transactions you initiated through their interfaces. For complete records, look up your wallet addresses directly on blockchain explorers like Etherscan, Solscan, or Blockchair.
NFT activity requires special attention. OpenSea, Blur, Magic Eden, and other marketplaces track your buy and sell history, but gas fees, failed transactions, and cross-marketplace activity may only appear on-chain. Export your profile history from each platform and cross-reference with blockchain data.
Mining and staking income must be documented with dates and fair market values at receipt. Mining pools typically provide payout history dashboards. Staking platforms like Lido, Rocket Pool, or exchange staking programs have reward tracking features. Download complete 2025 records from each source.
Airdrops, forks, and promotional rewards are taxable income often missed by investors. Search your wallet history for unexpected token receipts. Check airdrop tracking sites like Earni.fi for claims you may have made. Each receipt requires documentation of the date and fair market value.
π Transaction Data Resources
Tools for gathering and organizing your crypto transaction history.
π DeBank - DeFi Portfolio Tracker
π Week 2: Reconcile & Verify Records
Week 2 focuses on importing your collected data into crypto tax software and identifying any gaps or errors. Raw exchange exports often contain incomplete information, duplicate entries, or transactions that need manual categorization.
Choose your crypto tax software platform if you haven't already. Popular options include CoinTracker ($59-$199/year), Koinly ($49-$279/year), TaxBit (free-$175/year), and CoinLedger ($49-$299/year). Each platform offers direct exchange integrations and CSV import functionality.
Import your centralized exchange data first using API connections when available. API imports pull data directly from exchanges, reducing manual errors and ensuring you capture all transactions including deposits, withdrawals, and trades. Connect Coinbase, Kraken, Gemini, and other supported platforms.
Upload CSV exports for exchanges without API support or for DeFi wallet data. Your tax software will attempt to parse and categorize each transaction. Review the import results carefully, as automated categorization isn't always accurate.
π Common Reconciliation Issues
| Issue | Symptoms | Solution |
|---|---|---|
| Missing Cost Basis | Warnings about unknown acquisition | Add manual purchase records or transfer history |
| Duplicate Transactions | Same trade appearing twice | Delete duplicate entries from imports |
| Unmatched Transfers | Withdrawals not linked to deposits | Manually match send/receive pairs |
| Wrong Transaction Type | Trade labeled as income or vice versa | Edit transaction category manually |
| Missing DeFi Transactions | Balance doesn't match wallet | Import additional wallet addresses |
Source: Common issues identified by major crypto tax software providers
Verify your ending balances match actual wallet holdings. Most tax software shows a calculated balance based on imported transactions. If this doesn't match your real holdings, you have missing transactions somewhere. Track down the discrepancy by checking each wallet and exchange.
Transfers between your own wallets should be marked as non-taxable transfers, not dispositions. Sending Bitcoin from Coinbase to your Ledger isn't a sale, but software sometimes misclassifies these movements. Review large "sales" that might actually be transfers.
Lost or stolen crypto requires documentation if you plan to claim a casualty loss. While tax treatment of crypto theft is complex after the 2017 tax law changes, maintaining records of security incidents is important. Document any hacks, scams, or lost wallet situations from 2025.
Create a spreadsheet for transactions that can't be imported automatically. Peer-to-peer trades, crypto received as payment for services, gifts given or received, and other non-exchange transactions need manual entry with date, amount, fair market value, and counterparty information when applicable.
Cross-reference your records against any 1099 forms you receive. Starting in 2026, Form 1099-DA will be issued by crypto brokers. Compare reported figures against your own calculations. If discrepancies exist, determine whether the issue is on your side or the broker's reporting.
π§ Crypto Tax Software Comparison
Compare features and find the right tool for your needs.
π° Week 3: Calculate Gains & Losses
With clean, reconciled data in your tax software, Week 3 focuses on running final calculations and optimizing your cost basis method. The choices you make now directly impact your tax liability, so take time to analyze different scenarios before finalizing.
Generate preliminary tax reports using your software's default settings, typically FIFO (First In, First Out). Review the summary showing total capital gains, capital losses, short-term vs long-term breakdown, and ordinary income from mining, staking, or airdrops.
Compare different cost basis methods by toggling between FIFO, LIFO, HIFO, and Specific Identification in your tax software. Most platforms allow instant recalculation. Document the tax impact of each method to choose the most advantageous approach for your situation.
Pay special attention to the short-term vs long-term split. Short-term gains (assets held less than one year) are taxed at ordinary income rates up to 37%. Long-term gains benefit from preferential rates of 0%, 15%, or 20% depending on your total income. Your cost basis method affects which lots are sold first and their holding periods.
π° Cost Basis Method Tax Impact Example ($50,000 in Sales)
| Method | Calculated Gain | ST/LT Split | Est. Tax (24% bracket) |
|---|---|---|---|
| FIFO | $32,000 | 20% ST / 80% LT | $5,376 |
| LIFO | $18,000 | 70% ST / 30% LT | $3,834 |
| HIFO | $12,000 | 55% ST / 45% LT | $2,520 |
Example only. Actual results vary based on individual transaction history. | Source: IRS Publication 550
Separate your income types for accurate reporting. Capital gains from trading go on Form 8949 and Schedule D. Mining income is self-employment income on Schedule C. Staking rewards may be ordinary income on Schedule 1 or Schedule C depending on your situation. Properly categorized income ensures correct tax treatment.
Calculate any remaining tax-loss harvesting opportunities for Q4 2025 if you haven't filed yet. Some investors realize they have additional losses that could offset gains. If you made trades before December 31, ensure they're included in your 2025 calculations.
Review your total ordinary income from crypto sources. Mining rewards, staking income, airdrops, and payment for services are all taxed at ordinary income rates. This income also triggers self-employment tax of 15.3% if you're operating as a business rather than a hobby.
Check for Net Investment Income Tax (NIIT) implications. If your modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly), you may owe an additional 3.8% tax on investment income including crypto capital gains. Factor this into your total liability estimate.
Generate carryforward loss reports if applicable. If your 2024 return included capital loss carryforwards, ensure your 2025 calculations incorporate these amounts. Losses carried forward offset 2025 gains before any new losses are applied.
π° Tax Calculation Resources
Official IRS guidance on capital gains and cost basis.
π Week 4: Prepare Tax Documents
The final week of January focuses on generating official tax forms and organizing all supporting documentation. Whether you file yourself or hand off to a CPA, having complete, organized materials saves time and reduces errors.
Generate Form 8949 from your crypto tax software. This form lists every individual disposition with acquisition date, sale date, proceeds, cost basis, and gain or loss. Depending on your transaction volume, you may have dozens or hundreds of pages. Most software generates IRS-ready PDFs.
Create Schedule D summary from your Form 8949 data. Schedule D aggregates your short-term and long-term totals and calculates your net capital gain or loss. This summary form is what actually gets filed with your return, with Form 8949 attached as supporting detail.
Prepare Schedule C if you have mining or trading business income. This form reports your gross income and business deductions, calculating net profit or loss from self-employment. You'll also need Schedule SE to calculate self-employment tax on this income.
π Tax Forms Checklist
| Form | Purpose | Who Needs It | Source |
|---|---|---|---|
| Form 8949 | Report individual transactions | All crypto sellers | Crypto tax software |
| Schedule D | Summarize capital gains/losses | All crypto sellers | Crypto tax software |
| Schedule C | Report business income/expenses | Miners, active traders | Manual or tax prep software |
| Schedule SE | Calculate self-employment tax | Schedule C filers | Tax prep software |
| Schedule 1 | Report additional income | Hobby miners, stakers | Tax prep software |
| Form 1040 | Main tax return | Everyone | Tax prep software |
Source: IRS Form Instructions | All crypto activity must be reported on Form 1040
Compile supporting documentation in an organized folder structure. Keep original exchange exports, tax software reports, cost basis calculations, and any manual transaction records. This documentation defends your position if the IRS questions your return.
Answer "Yes" to the digital asset question on Form 1040. This question asks whether you received, sold, exchanged, or otherwise disposed of digital assets during the year. Answering "No" when you had crypto activity is considered a false statement.
Review any 1099 forms received from exchanges. Coinbase, Kraken, and other platforms issue 1099-MISC for income over $600 and will issue new 1099-DA forms starting in 2026. Ensure amounts reported match your calculations, or document the discrepancy.
Prepare your CPA package if using a tax professional. Include all generated tax forms, summary of crypto activity, notable transactions or situations requiring attention, and questions about specific treatment. A well-organized package reduces billable hours and ensures nothing is missed.
Calculate your estimated tax liability to avoid surprises. Before filing, understand approximately what you'll owe. If the amount is significant, plan your cash flow for the April 15 payment deadline. Consider whether you need to make additional estimated payments.
π Tax Forms & Instructions
Download official IRS forms and instructions.
π Form 8949 - Sales and Dispositions
⏰ Critical January Deadlines
January contains several critical tax deadlines that crypto investors must not miss. Mark these dates on your calendar and set reminders at least one week in advance to ensure timely action.
January 15, 2026 is the deadline for Q4 2025 estimated tax payments. If you owed estimated taxes for the October-December 2025 period, payment must be received by this date to avoid underpayment penalties. Use IRS Direct Pay for immediate processing.
By January 31, 2026, exchanges must issue 1099 forms to users. This includes 1099-MISC for staking rewards or promotional income, and the new 1099-DA for digital asset transactions. Watch your mail and email for these documents, and verify amounts against your records.
If you missed the 2025 S-Corp election deadline and want to elect for 2026, start preparing Form 2553 now. The filing deadline is March 15, 2026, but gathering required information takes time. Contact your CPA in January to begin the process.
⏰ January 2026 Tax Calendar
| Date | Deadline | Action Required |
|---|---|---|
| January 1 | New tax year begins | Start gathering 2025 records |
| January 15 | Q4 2025 Estimated Tax Due | Pay via IRS Direct Pay |
| January 31 | 1099 forms issued | Receive & verify exchange 1099s |
| Late January | Complete prep goal | Finish all 2025 record organization |
Source: IRS Tax Calendar | Set reminders 7 days before each deadline
Solo 401k contributions for 2025 have a split deadline. Employee contributions must have been made by December 31, 2025. Employer profit-sharing contributions can still be made until your tax filing deadline, including extensions (October 15, 2026 if extended).
SEP-IRA and Traditional IRA contributions for 2025 can still be made until April 15, 2026. Use January to calculate maximum contribution amounts based on your 2025 income. Open accounts if needed, as funding requires an established account.
Check state-specific deadlines if your state has income tax. Most states follow federal deadlines, but some have different dates or requirements. Research your state's tax authority website for accurate information.
⏰ Don't Miss: January 15 Payment
Q4 2025 estimated tax payment due January 15, 2026.
⚠️ Common January Mistakes to Avoid
Even well-intentioned investors make costly mistakes during January tax preparation. Awareness of these common pitfalls helps you avoid them and ensures accurate, complete tax reporting.
Waiting too long to export exchange data is the number one mistake. Exchanges can remove historical data, change export formats, or even shut down entirely. Export everything in the first week of January while 2025 data is still fresh and accessible.
Forgetting DeFi transactions leads to massive underreporting. Many investors focus only on centralized exchange activity and completely miss DEX swaps, liquidity provision, yield farming, and other DeFi interactions. Every token swap is a taxable event.
Treating transfers as sales inflates your gains incorrectly. Moving Bitcoin from Coinbase to your Ledger isn't a sale. Ensure your tax software correctly categorizes these as non-taxable transfers between your own wallets.
⚠️ Top January Tax Prep Mistakes
| Mistake | Consequence | How to Avoid |
|---|---|---|
| Waiting to export data | Data becomes unavailable | Export Week 1 of January |
| Missing DeFi transactions | Underreported income/gains | Use DeBank/Zapper for all wallets |
| Transfers marked as sales | Inflated gains, double taxation | Review & recategorize transfers |
| Ignoring staking/mining income | Unreported ordinary income | Track all reward receipts |
| Not comparing cost basis methods | Higher taxes than necessary | Run FIFO/LIFO/HIFO comparisons |
| Missing January 15 payment | Underpayment penalties | Set reminder, pay early |
Source: Common errors identified by crypto tax professionals
Ignoring staking and mining income is another frequent error. These rewards are taxable as ordinary income at the time you receive them. The fair market value at receipt becomes your cost basis for future sales. Track every reward transaction with date and USD value.
Not comparing cost basis methods leaves money on the table. The difference between FIFO and HIFO can be thousands of dollars in tax savings. Spend 30 minutes running comparisons in your tax software before finalizing your approach.
Forgetting about airdrops and free crypto creates unreported income. Those "free" tokens from airdrops, referral bonuses, or learn-and-earn programs are all taxable at fair market value when received. Search your wallet history for unexpected token arrivals.
Using the wrong exchange for fair market value causes cost basis errors. If you received Bitcoin at 3 AM on a small DEX, the price may differ significantly from Coinbase at that moment. Use consistent, reputable price sources for all valuations.
Missing the January 15 estimated payment deadline triggers penalties. Even if you file an extension later, quarterly estimated payments are still due on their original dates. Late payments accrue interest and penalties from the deadline date.
π Related Articles from legalmoneytalk
➡️ Crypto New Year Tax Resolutions 2026 — 6 Habits That Save Thousands
➡️ Best Crypto Tax Software 2026 — CoinTracker vs Koinly vs TaxBit
➡️ IRS Crypto Audit Red Flags 2026 — How to Avoid Getting Flagged
➡️ 2026 Bitcoin Mining Tax Deductions — Are You Missing Thousands?
❓ FAQ
Q1. When should I start gathering my crypto tax documents?
A1. Start the first week of January. Export all exchange and wallet data immediately while 2025 records are still accessible. Waiting risks data becoming unavailable or formats changing.
Q2. What happens if I miss the January 15 estimated tax payment?
A2. The IRS charges underpayment penalties calculated from January 15 until payment is received. Current penalty rates are tied to federal short-term interest rates. Pay as soon as possible to minimize penalties.
Q3. Do I need to report crypto if I only held and didn't sell?
A3. Simply holding crypto isn't taxable. However, you must still answer "Yes" to the digital asset question on Form 1040 if you received crypto through mining, staking, airdrops, or payment for services, even if you didn't sell.
Q4. How do I find DeFi transactions that aren't on exchanges?
A4. Use portfolio trackers like DeBank or Zapper that scan blockchain data for all wallet addresses. Also check Etherscan, Arbiscan, Solscan, and other chain-specific explorers for complete transaction histories.
Q5. Which cost basis method should I use?
A5. Run comparisons in your crypto tax software. HIFO (Highest In, First Out) typically minimizes gains, but the best method depends on your specific transaction history. Choose the method that legally reduces your tax liability.
Q6. What if my exchange-issued 1099 doesn't match my records?
A6. Document the discrepancy and determine the correct amount. Report your accurate figures on your return. The IRS receives copies of 1099s, so significant differences may trigger questions. Keep detailed records explaining any variance.
Q7. Can I still contribute to retirement accounts for 2025?
A7. Yes, Traditional IRA, Roth IRA, SEP-IRA, and HSA contributions for 2025 can be made until April 15, 2026. Solo 401k employer contributions can also be made until your filing deadline. Employee 401k contributions must have been made by December 31, 2025.
Q8. Should I hire a CPA or use tax software?
A8. For straightforward situations with fewer than 100 transactions, tax software is often sufficient. Complex situations involving mining income, business structure decisions, or significant amounts benefit from professional CPA review. Many investors use software to generate forms, then have a CPA review before filing.
⚠️ Disclaimer
This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex and individual circumstances vary significantly. The information provided is based on current IRS publications and regulations as of December 2025, which may be subject to change.
Consult with a qualified CPA, tax attorney, or other licensed professional before making any tax-related decisions. The author and publisher are not responsible for any errors, omissions, or actions taken based on this information.
Sources: IRS Notice 2014-21 | IRS Publications 550, 505 | IRS Topics 305, 409 | IRS Forms 8949, Schedule D, Schedule C
Last Updated: December 24, 2025 | Author: Davit Cho | Contact: davitchh@gmail.com
