How to Report Crypto Taxes in 2025: IRS Forms 8949, Schedule D More | Awaken Tax
Filing your crypto taxes doesn’t need to be overwhelming. With new IRS requirements and increased reporting through exchanges, U.S. taxpayers must be more diligent than ever in tracking crypto gains, losses, and income. At Awaken.tax, we’ve built the tools you need to generate accurate IRS-ready reports — including Form 8949, Schedule D, Schedule 1, and Schedule C — no matter how complex your crypto activity.
The IRS requires American crypto investors to report all cryptocurrency transactions by April 15. With the IRS now receiving transaction data directly from exchanges, accurate crypto tax reporting is critical. But which forms do you actually need? Let’s break down the most common IRS crypto tax forms and explain how Awaken automates the process.
Which Crypto Tax Forms Do You Need?
Form | Who Needs It? | What’s Included? |
Form 8949 | Anyone with capital gains or losses from crypto | Report each disposal of crypto (sales, swaps, spending) |
Schedule D (Form 1040) | Anyone with capital gains or losses from crypto | Summarize your net capital gain or loss |
Schedule C (Form 1040) | Self-employed investors earning income from crypto | Report gross income and expenses from crypto activity |
Schedule 1 (Form 1040) | Anyone with additional crypto income | Report staking, mining, or airdrop income |
Form 1040 | Every U.S. taxpayer | Final return including totals from all schedules |
You may not need all of these forms. Most crypto traders will use Form 8949 and Schedule D for gains/losses and Schedule 1 for income. If you want to learn more, you can read our full guide on Crypto Taxes 101 for the United States.
Step-by-Step: IRS Form 8949 for Crypto
Form 8949 is where you report each taxable crypto disposal:
Selling crypto for fiat (e.g., USD)
Swapping one crypto for another
Spending crypto on goods or services
For each line, you’ll need:
Asset description (e.g., 0.5 BTC)
Date acquired
Date disposed
Sale price (fair market value)
Cost basis (purchase price + fees)
Net gain or loss
Form 8949 has two sections:
Part I: Short-term disposals (held < 1 year, taxed at income rates)
Part II: Long-term disposals (held > 1 year, taxed at lower long-term rates)
Awaken automatically pulls this information from your wallets and exchanges, generating a complete crypto Form 8949 without manual spreadsheets.
Schedule D: Summarizing Your Crypto Gains and Losses
After filling out Form 8949, totals flow into Schedule D. Here you’ll report:
Short-term totals (line 7)
Long-term totals (line 15)
Combined net gain/loss (line 16)
You can also carry forward unused losses — up to $3,000 per year can be offset against income. Awaken calculates both your net position and carryovers automatically, so your Schedule D is ready for filing.
Schedule 1: Reporting Crypto Income
Not all crypto activity is a capital gain. If you earned crypto through:
Staking rewards
Mining income
Airdrops
Bonuses
You’ll use Schedule 1 (Form 1040) to report this as “Other Income” (Part 1, line 8). Awaken separates crypto income taxes from capital gains, ensuring every dollar is reported properly.
Schedule C: Crypto as a Business
If your crypto activity qualifies as self-employment (like mining operations or running a validator), you may need Schedule C. This form allows you to report gross crypto income and deduct related business expenses (equipment, electricity, hosting costs, etc.).
Awaken provides the raw transaction data you or your CPA need to complete Schedule C.
Form 1040: Your Final Return
Finally, all totals from Form 8949, Schedule D, Schedule 1, and Schedule C flow into your Form 1040. You’ll:
Report net gains (line 7)
Report crypto income (line 8)
Answer the digital asset question at the top of Form 1040
With Awaken, all of these numbers are pre-calculated and IRS-compliant, ready to be imported directly into your filing software.
Why Use Awaken for Crypto Tax Reporting
Manually filling out these forms is nearly impossible if you’ve traded across multiple wallets, blockchains, or DeFi platforms. Awaken was built to handle:
Automatic wallet syncing across chains
DeFi tax reporting (bridges, swaps, liquidity pools)
NFT tax reporting
Cost basis tracking (FIFO, LIFO, HIFO)
IRS-ready Form 8949 and Schedule D outputs
This means you can file your crypto taxes with confidence — knowing every gain, loss, and income stream is properly reported.
Final Thoughts: File Crypto Taxes with Confidence
The IRS is increasing its oversight of crypto, and with 1099-DA reporting starting in 2025, accurate crypto tax forms are more important than ever.
At Awaken.tax, we make it simple: upload your wallets, let us categorize your transactions, and generate all the forms you need — including Form 8949, Schedule D, and Schedule 1 — ready for April 15.
Don’t risk errors, missed transactions, or incomplete reports. Let Awaken handle your crypto tax season.
