Q1 2026 Crypto Tax Calendar — Key Deadlines & Action Items π
✍️ Written by Davit Cho
Crypto Tax Specialist | CEO at JejuPanaTek (2012~)
Patent Holder (Patent #10-1998821) | 7+ years crypto investing since 2017
Personally filed crypto taxes since 2018
LinkedIn: linkedin.com/in/davit-cho-crypto
Blog: legalmoneytalk.blogspot.com
Contact: davitchh@gmail.com
π Last Updated: December 28, 2025 | ✅ Fact-Checked: Based on IRS Publications & Official Guidelines
π Table of Contents
⚡ Quick Facts — Q1 2026
π Q4 2025 Estimated Tax Due: January 15, 2026
π 1099-DA Forms Mailed By: January 31, 2026
π Tax Filing Deadline: April 15, 2026
π° Q1 2026 Estimated Tax Due: April 15, 2026
π Extension Deadline: October 15, 2026
Source: IRS Tax Calendar 2026
π Official IRS Guidance
Q1 2026 is the most critical quarter for crypto investors when it comes to taxes. The first three months of the year determine whether you file smoothly or scramble at the last minute. With new 1099-DA reporting requirements starting in 2026, this year is especially important to get right. Missing deadlines can cost you hundreds or even thousands in penalties.
λ΄κ° μκ°νμ λ, most crypto investors underestimate how much preparation Q1 requires. They wait until April and then panic when they realize they need transaction history from five different exchanges and three DeFi protocols. The key is starting early and staying organized throughout the quarter. This calendar breaks down exactly what you need to do each month so you can file with confidence.
Whether you traded Bitcoin, staked Ethereum, farmed DeFi yields, or collected NFTs, this guide covers the deadlines and action items you need to know. The IRS is paying closer attention to crypto than ever before, and 2026 marks the first year of mandatory broker reporting. Being prepared is not optional anymore — it is essential for avoiding penalties and audits.
π January Deadlines & Tasks
January is the foundation month for your entire tax filing process. The most important deadline is January 15, 2026, when your Q4 2025 estimated tax payment is due. If you earned staking rewards, mining income, or had significant trading profits in October through December 2025, you need to make this payment to avoid underpayment penalties.
The penalty for underpayment is calculated daily and compounds quickly. For 2026, the IRS underpayment rate is expected to be around 8% annually. That means every $10,000 you underpay costs you approximately $800 per year in penalties, plus interest. Making your January 15 payment on time eliminates this risk for Q4 2025 income.
Beyond the payment deadline, January is when you should start gathering all your transaction records. Every exchange you used in 2025 — Coinbase, Kraken, Gemini, Binance.US, and others — will have transaction history available for download. Do not wait until February or March when their systems might be overloaded with tax season traffic.
For DeFi users, January is when you need to pull your on-chain transaction data. Tools like Etherscan, BscScan, and other block explorers let you export CSV files of all your wallet activity. If you used protocols like Uniswap, Aave, Compound, or Curve, you need records of every swap, deposit, withdrawal, and reward claim. This data does not come automatically — you have to actively retrieve it.
π January Action Checklist
| Date | Action Item | Priority |
|---|---|---|
| Jan 1-5 | Download all exchange transaction history | High |
| Jan 1-10 | Export DeFi wallet transactions | High |
| Jan 15 | Q4 2025 estimated tax payment due | Critical |
| Jan 20-31 | Import data into tax software | Medium |
| Jan 31 | 1099-DA forms mailed by exchanges | Info |
By January 31, exchanges are required to mail 1099-DA forms to customers for the first time in 2026. This is a major change from previous years when crypto reporting was largely self-reported. Expect to receive these forms in early to mid-February. However, do not rely solely on 1099-DA — it may not include all your transactions, especially if you used DeFi, self-custody wallets, or foreign exchanges.
One mistake I see every year is investors forgetting about staking rewards and mining income when calculating their estimated payment. Remember, staking rewards are taxed as ordinary income the moment you receive them. If you earned 2 ETH in staking rewards during Q4 when ETH was worth $3,500, that is $7,000 of taxable income you need to account for in your January 15 payment.
π° Don't Miss Your January 15 Payment!
Pay your Q4 2025 estimated taxes now to avoid penalties.
π³ Pay Now via IRS Direct Pay
π February Tax Preparation
February is the month for organizing everything you gathered in January. By now you should have received your 1099-DA forms from exchanges, and your crypto tax software should have most of your transaction data imported. This is when you identify discrepancies, fix errors, and choose your cost basis method.
The first step in February is comparing your 1099-DA forms against your own records. Exchanges sometimes make mistakes, and the 2026 tax year is the first time they are issuing these forms. You may find transactions missing, incorrect cost basis reported, or even duplicate entries. Do not assume the 1099-DA is accurate — verify everything against your personal transaction history.
If your 1099-DA shows unknown cost basis for any transactions, you need to provide the correct figures yourself. The IRS assumes a cost basis of zero if no basis is reported, which means you would owe taxes on the entire sale proceeds as profit. This can dramatically inflate your tax bill if you do not correct it.
Choosing the right cost basis method can save you thousands of dollars. HIFO (Highest In, First Out) typically minimizes your taxable gains by assuming you sold the coins you paid the most for. However, once you choose a method, you should apply it consistently. Switching methods mid-year or between years can raise red flags with the IRS.
π Cost Basis Methods Comparison
| Method | Description | Best For |
|---|---|---|
| FIFO | First In, First Out — oldest coins sold first | Rising markets, long-term holders |
| LIFO | Last In, First Out — newest coins sold first | Falling markets, minimizing gains |
| HIFO | Highest In, First Out — highest cost coins sold first | Minimizing taxable gains |
| Specific ID | You choose exactly which coins to sell | Maximum tax optimization |
February is also when you should calculate your total crypto income for the year. This includes not just trading gains, but also staking rewards, mining income, DeFi yields, airdrops, and any crypto received as payment for goods or services. Each category may have different tax treatment, so separating them now makes filing much easier.
If you are using crypto tax software like CoinTracker, Koinly, or TaxBit, February is when you should run your first complete tax report. Review it carefully for any transactions marked as unknown, transfers incorrectly classified as sales, or missing cost basis. These tools are powerful but not perfect — human review is still essential.
π Need Help Calculating Your Crypto Taxes?
See our comparison of the best crypto tax software for 2026.
π Best Crypto Tax Software 2026
π March Filing Strategies
March is decision time. You need to decide whether to file your taxes by April 15 or request an extension to October 15. Both options have pros and cons, and the right choice depends on your specific situation. Either way, March is when you finalize all your calculations and prepare your actual tax forms.
If your crypto transactions were straightforward — mostly buying and holding with a few sales — filing by April 15 is usually the better option. You get your refund faster (if applicable), avoid the stress of an extended deadline, and close out the tax year completely. Early filers also reduce their risk of identity theft, as scammers cannot file fraudulent returns in your name once you have already filed.
However, if you had complex activity — DeFi protocols, multiple wallets, NFT trading, staking across several platforms — an extension might be wiser. The extension gives you until October 15 to file, providing six extra months to sort out complicated transactions. Just remember: an extension to file is not an extension to pay. You still owe any taxes by April 15.
π Filing vs Extension Decision Guide
| Situation | Recommendation | Reason |
|---|---|---|
| Simple trades only | File by April 15 | Get refund faster, reduce fraud risk |
| Complex DeFi activity | Request extension | More time to categorize transactions |
| Missing 1099-DA forms | Request extension | Wait for corrected forms |
| Expecting refund | File by April 15 | Get money sooner |
| Owe significant taxes | Either — but pay by April 15 | Avoid penalties and interest |
In March, you should finalize your Form 8949, which reports each individual crypto transaction. This form feeds into Schedule D, which summarizes your total capital gains and losses. If you have hundreds or thousands of transactions, crypto tax software generates these forms automatically — but always review them before filing.
π Need More Time to File?
Get until October 15, 2026 to file — but pay any taxes owed by April 15.
π Get Form 4868 Instructions
π 1099-DA Forms — First Year
2026 marks a historic change in crypto taxation: the first year of mandatory 1099-DA reporting. Exchanges like Coinbase, Kraken, Gemini, and Binance.US are required to report your crypto transactions directly to the IRS. This is the biggest shift in crypto tax enforcement since the IRS first clarified that crypto is property in 2014.
You should receive your 1099-DA forms by mid-February. These forms report every sale, trade, and disposal that occurred on the exchange during 2025. The IRS receives an identical copy, so they know exactly what your exchange reported. Any discrepancy between your tax return and your 1099-DA will be flagged automatically.
The 1099-DA includes several key pieces of information: the date of each transaction, the type of transaction (sale, trade, etc.), the gross proceeds, the cost basis (if known), and the gain or loss. For the first few years, cost basis reporting may be incomplete because exchanges do not always have your full purchase history, especially if you transferred coins in from another platform.
π What Your 1099-DA Includes
| Field | Description | Your Action |
|---|---|---|
| Gross Proceeds | Total value received from sales | Verify against your records |
| Cost Basis | What you paid for the crypto | Correct if shows "unknown" |
| Gain/Loss | Difference between proceeds and basis | Verify calculation is accurate |
| Date Acquired | When you bought the crypto | Check for long vs short-term |
| Date Sold | When you disposed of the crypto | Confirm matches your records |
The biggest issue with 1099-DA forms in 2026 will be the unknown cost basis problem. If you transferred Bitcoin from a hardware wallet to Coinbase and then sold it, Coinbase does not know what you originally paid. They will report the cost basis as unknown, and the IRS will assume it is zero. This means you could be taxed on the entire sale amount as profit unless you provide the correct basis.
π First Year of 1099-DA Reporting
Learn what to expect and how to prepare for the new requirements.
π Read Our Complete 1099-DA Guide
π° Q1 Estimated Tax Payments
If you expect to owe $1,000 or more in taxes for 2026, you are required to make quarterly estimated tax payments. Q1 covers income earned from January 1 through March 31, and the payment is due on April 15, 2026 — the same day as the tax filing deadline. This timing trips up many investors who focus on filing and forget about the estimated payment.
Estimated payments apply to all crypto income that is not subject to withholding. This includes trading profits, staking rewards, mining income, DeFi yields, and any crypto received as payment. Unlike a regular job where your employer withholds taxes from each paycheck, crypto income comes to you gross — and you are responsible for setting aside and paying the taxes yourself.
The safe harbor rule protects you from underpayment penalties if you pay either 100% of last year's tax liability or 90% of the current year's liability (whichever is smaller). If your adjusted gross income exceeded $150,000 last year, the threshold increases to 110% of last year's liability. Meeting one of these thresholds means no penalty, even if you ultimately owe more when you file.
π° 2026 Estimated Tax Payment Schedule
| Payment | Income Period | Due Date |
|---|---|---|
| Q4 2025 | Oct - Dec 2025 | January 15, 2026 |
| Q1 2026 | Jan - Mar 2026 | April 15, 2026 |
| Q2 2026 | Apr - May 2026 | June 16, 2026 |
| Q3 2026 | Jun - Aug 2026 | September 15, 2026 |
| Q4 2026 | Sep - Dec 2026 | January 15, 2027 |
Calculating your Q1 estimated payment involves projecting your crypto income for the quarter. If you earned $10,000 in staking rewards during Q1, and you are in the 24% tax bracket, you would owe approximately $2,400 in federal income tax plus self-employment tax if applicable. Add state income tax based on your location. A good rule of thumb is to set aside 30-40% of all crypto income for taxes.
⚠️ Common Q1 Mistakes to Avoid
Every tax season, I see the same mistakes repeated by crypto investors. Understanding these common errors can save you money, stress, and potential IRS problems. Here are the most frequent Q1 mistakes and how to avoid them.
The number one mistake is waiting until April to start. Q1 preparation should begin in January, not in the final weeks before the deadline. Investors who wait find themselves scrambling to download transaction history, fix software errors, and understand complex transactions all under time pressure. This leads to mistakes and missed deductions.
Another major mistake is forgetting about crypto-to-crypto trades. Every time you swap Bitcoin for Ethereum, or exchange any crypto for another, you trigger a taxable event. The gain or loss is calculated based on the fair market value at the time of the trade. Many investors think only sales to USD are taxable — this is wrong and can result in massive underreporting.
⚠️ Common Q1 Mistakes
| Mistake | Consequence | How to Avoid |
|---|---|---|
| Waiting until April | Errors, missed deductions | Start in January |
| Ignoring crypto-to-crypto trades | Underreporting income | Report every swap |
| Trusting 1099-DA blindly | Incorrect basis, overpaying | Verify against records |
| Missing staking/mining income | IRS mismatch notice | Track all income sources |
| Forgetting DeFi activity | Unreported income | Export wallet history |
| Missing estimated payment | Penalties and interest | Pay by January 15 and April 15 |
Forgetting about staking rewards and mining income is another frequent error. These are taxable as ordinary income when received, not just when sold. If you staked ETH throughout 2025 and earned rewards, each reward is a separate taxable event at the fair market value on the date of receipt. Use your staking platform's transaction history to identify every reward.
π¨ Avoid These Costly Errors
Know the IRS audit red flags before you file.
π IRS Crypto Audit Red Flags 2026
❓ FAQ
Q1. When is the Q4 2025 estimated tax payment due?
A1. January 15, 2026. This covers crypto income earned from October through December 2025. Missing this deadline results in underpayment penalties.
Q2. When will I receive my 1099-DA forms?
A2. Exchanges must mail 1099-DA forms by January 31, 2026. Expect to receive them in early to mid-February. Check your exchange account for electronic versions as well.
Q3. What if my 1099-DA shows incorrect cost basis?
A3. Report the correct cost basis on your Form 8949. The IRS allows you to correct 1099 information, but keep documentation proving your actual cost basis in case they ask.
Q4. Should I file by April 15 or request an extension?
A4. If your crypto activity was simple, file by April 15 to get any refund faster. If you had complex DeFi transactions or missing information, an extension to October 15 gives you more time — but you still must pay any taxes owed by April 15.
Q5. Do DeFi transactions appear on 1099-DA forms?
A5. No. DeFi protocols and decentralized exchanges do not issue 1099-DA forms. You are responsible for tracking and reporting all DeFi activity yourself.
Q6. How much should I set aside for crypto taxes?
A6. A safe rule is 30-40% of all crypto income. This covers federal income tax, potential state tax, and self-employment tax if applicable. Adjust based on your specific tax bracket.
Q7. What is the penalty for missing estimated tax payments?
A7. The underpayment penalty is approximately 8% annually, calculated daily on the amount you underpaid. For a $10,000 underpayment over one year, that is about $800 in penalties plus interest.
Q8. Which cost basis method should I use?
A8. HIFO (Highest In, First Out) typically minimizes taxable gains. However, choose a method you can apply consistently year after year. Consult a tax professional if you are unsure which method is best for your situation.
π Related Articles
π 1099-DA Crypto Tax Form 2026 — First Year Guide
π Crypto Staking Taxes 2026 — How Staking Rewards Are Taxed
π DeFi Taxes 2026 — Liquidity Pools & Yield Farming
π IRS Crypto Audit Red Flags 2026 — How to Avoid Getting Flagged
⚠️ Disclaimer
This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex and subject to change. Consult a qualified tax professional for advice specific to your situation. The author and publisher are not responsible for any actions taken based on this information.
Last Updated: December 28, 2025 | Sources: IRS Publications, IRS Virtual Currency FAQ, Form 8949 Instructions
