Crypto Taxes 2026: What Every Investor Must Know Now

The single biggest change for crypto taxes in 2026 is this: brokers are now required to report your cost basis, not just gross proceeds, on Form 1099-DA for covered digital assets acquired on or after January 1, 2026.

That means the IRS will receive both sides of your gain calculation automatically, and automated data matching will catch discrepancies your broker reports versus what you file. Three things to do right now: Reconcile your records.

Pull transaction exports from every exchange and wallet before year-end. Mismatches between your on-chain history and broker-supplied basis are already appearing, and they will trigger notices. Elect and document your cost-basis method.

Specific identification (SpecID) lets you choose which lots to sell, but you must document the election and timestamp evidence before the sale, not after. Set aside liquidity. If you have unrealized gains, estimate your tax liability now.