Do you have to report crypto on taxes if you made under $600?

In the United States, you generally do have to report crypto on your taxes even if you made under $600. The IRS says income, gain or loss from every taxable digital asset transaction belongs on your return, no matter how small it is and whether or not you received a tax form about it. The idea of a $600 crypto exemption is a myth.

Do I have to report crypto if I made less than $600?

Yes, if the activity was taxable. Selling crypto for dollars, swapping one coin for another, spending crypto on goods, and getting paid in crypto are all taxable events in the IRS's view. A gain of $40 is reported the same way as a gain of $40,000. Losses are reported too. Our guide to crypto losses and taxes covers how they are handled.

Some activity is not taxable. Buying crypto with dollars and simply holding it does not create a gain. Moving coins between two wallets you own is also not a taxable event, though network fees paid in crypto can be. See whether you pay tax on crypto if you don't sell.

Where does the $600 crypto tax myth come from?

The number comes from information returns, the forms a business or platform sends to you and to the IRS. For decades, Forms 1099-NEC and 1099-MISC were required for certain business payments of $600 or more. For payments made after December 31, 2025, that threshold rose to $2,000 under the 2025 tax law the IRS calls the Working Families Tax Cuts. Form 1099-K briefly moved toward a $600 threshold, but it has reverted to payments over $20,000 and more than 200 transactions.

These thresholds decide when a payer must send a form. They do not decide whether you owe tax. Not getting a form does not mean the income is tax-free.

What is the 1099-DA threshold?

Form 1099-DA is the new crypto tax form brokers use to report digital asset sales. Brokers must report gross proceeds for sales on or after January 1, 2025, and cost basis, meaning what you paid, for many assets bought from 2026.

There is no general $600 cutoff for ordinary crypto sales on this form. Under optional methods, a broker can skip reporting a customer's sales of certain NFTs if total proceeds for the year are $600 or less, and sales of qualifying stablecoins if they are $10,000 or less. Those are reporting shortcuts for brokers only. Your own obligation to report stays the same.

Do you have to answer the crypto question on Form 1040?

Every Form 1040 filer must answer the digital asset question. You check "Yes" if, during the year, you received crypto as a reward or payment, or sold, swapped, spent or otherwise disposed of it. Spending even a tiny amount of crypto on a purchase counts. You can check "No" if all you did was buy crypto with dollars or hold it. For more on the paperwork, see our guide to crypto tax forms.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.