Kraken Crypto Tax Guide
Once you sign up for Awaken, you can connect your Kraken account and get your crypto taxes started in under a minute. Awaken will automatically sync your Kraken transaction history — including trades, deposits, withdrawals, and staking rewards — and generate your tax reports for you.
Connecting Your Exchange to Awaken
Awaken connects to Kraken via API keys. The first step to getting your Kraken transactions uploaded to Awaken is to generate your keys following these steps:
Log in to Kraken
Open Settings: Click the profile icon (top right) and select "Settings"
Open “Connections & APIs”
Click "Create API Key"
Name the Key: Provide a descriptive name for your API key
Select Permissions: Choose the necessary permissions for your API key, including:
"Query”
"Query Closed Orders & Trades"
"Query Ledger Entries"
Enable IP Whitelisting: Add the IP address or range of your client application
Generate Key: Click "Generate Key" to create the API key
Save API Key: Copy and securely store the generated API key and private key
Now you’re ready to connect your Kraken account to Awaken:
Go to the Accounts tab on Awaken
Click Add Account
Type Kraken in the search bar
Click Connect
Log in using your Kraken credentials
Authorize Awaken to securely import your transaction data
Awaken will begin syncing your Kraken activity, including spot trades, margin trades, fiat transactions, rewards, and more.
📄 Alternative Option: Upload a CSV File
Prefer to upload your Kraken data manually? Here's how:
Follow our guide to properly format your CSV: 👉 How to Format Your CSV for Awaken Tax
Then return to Accounts > Add Account > Upload CSV and drag in your file
📄 Kraken Tax Documents
If you’re a Kraken user in the United States, you may receive one or more tax documents depending on your trading volume, income, and account activity. These forms are issued by Kraken to help you (and the IRS) track your crypto gains, income, and transfers.
🧾 Common U.S. Tax Forms from Kraken:
Form 1099-MISC - Issued if you earned $600 or more in rewards, staking income, or bonuses (e.g., referrals). This is considered ordinary income and must be reported on your tax return.
Form 1099-INT - Issued if you earned $10 or more in interest from Kraken’s Earn products. This is also taxed as ordinary income.
Form 1099-NEC (less common) - May be issued for promotional or contract-related income if applicable.
Form 1099-B - Kraken has not historically issued 1099-B forms, but future IRS regulations may require it. This form would report capital gains/losses on crypto sales.
📝 Even if you don’t receive any of these forms, you are still responsible for reporting your crypto activity. Awaken Tax helps you do this by aggregating your trade, income, and wallet data automatically.
🌍 Kraken Tax Documents by Country
For users outside the U.S., Kraken generally does not issue local tax forms, but here’s what to be aware of:
🇨🇦 Canada: No T-slips from Kraken. You must self-report capital gains and crypto income to the CRA.
🇬🇧 United Kingdom: No HMRC forms provided. You’ll need to report capital gains and income manually.
🇦🇺 Australia: No official ATO forms from Kraken. Crypto is taxed as property; use your transaction history to calculate gains/losses.
🇩🇪 Germany: No tax form issued. Track holding periods and gains for German tax reporting rules.
🇫🇷 France: No pre-filled forms. Manual reporting of gains and income is required.
🇯🇵 Japan: Income from Kraken must be reported as miscellaneous income; no forms provided.
In all of these countries, Awaken Tax helps by converting your Kraken transaction history into localized, compliant tax reports.
🔗 Next Step: Connect All Your Exchanges and Wallets
To create a complete and accurate tax report, connect every exchange and wallet you’ve used — not just Kraken. In order to report your taxes accurately, you need to account for your entire transaction history. You should even import old wallets and accounts that you no longer use.
Return to the Awaken Integrations Hub to connect platforms like Coinbase, MetaMask, Solana wallets, and more. Once all your data is imported, you’re ready to start doing your taxes.
🌍 How Kraken Transactions are Taxed
Typically, crypto investors may be subject to capital gains and income tax, but your specific tax implications depend on the tax laws in your country. Some countries have specific laws regarding crypto taxation, while others rely on the laws in place for another asset class, usually securities (stocks), or private property.
Before reviewing your transactions, make sure to set your Awaken account to your country of residence, and our software will automatically apply the rules of your country to your tax reports.
Check our country-by-country tax guide for more information on how your country taxes crypto: 📚 Global Crypto Tax Landscape 2025
🕵️ Does Kraken Report to the IRS?
Yes — Kraken is a regulated U.S. exchange and may report user activity to the IRS, especially if you are a U.S. citizen who earns more than $600 in crypto in a given year. This includes providing Form 1099 to qualifying users.
Additionally, if you’ve sent crypto from Kraken to a personal wallet, the IRS may use that information to trace your on-chain activity — even if it’s on a decentralized network.
To ensure compliance, connect both your Kraken account and all wallets you’ve interacted with to Awaken, and report your taxes accurately.
