Per the IRS, earning interest, bonuses, or other income in crypto is considered a taxable event in the U.S., and digital assets are generally treated as property for U.S. tax purposes. This means that BlockFi’s interest payments to you on digital assets, if applicable, are payments of property, making them subject to reporting through a Form1099-MISC, Miscellaneous Information (also known as 1099-MISC). Please note, only U.S. taxpayers who have earned more than $600.00 USD of interest and/or bonuses in 2022 will have Form1099-MISC available on their BlockFi account.
When will my tax forms be available?
U.S. taxpayers who have traded any amount of cryptocurrency or digital assets during 2022 will have a Form 1099-B available to download on their BlockFi account in order to report transactions.
Both Form 1099-MISC and Form 1099-B are currently available for download on the BlockFi website.
How can I access my tax forms?
To download your official U.S. Tax Forms:
- Log in to your BlockFi account through BlockFi’s web application at https://app.blockfi.com/signin. (Please note that reports are not available via the mobile application).
- Open your profile options from the navigation menu.
- Go to the top right corner, click the arrow, and select ‘Reports.’
- From the ‘Reports’ screen, go to the ‘Taxes’ section.
- Select ‘2022’ as the tax year.
- From there, you will be able to access the relevant documents and use them to prepare your taxes.
Again, please note that only U.S. taxpayers who have earned more than $600.00 USD of interest and/or bonuses in 2022 will have Form 1099-MISC available on their account.
Why are there slight discrepancies on my 1099-MISC?
Income is determined based on the USD notional of all crypto earnings at the time the client earned them. Meaning, Total Interest Paid displayed in the app and values on Monthly Earnings Statements are an estimate of the current value, and it may be slightly lower or higher than the amount seen on Form1099-MISC, depending on market conditions.
Why is the cost-basis on my 1099-B missing?
If you fund your account via crypto transfer, applicable tax forms will not include the cost-basis as BlockFi cannot confirm the price at time of purchase.
*Note: This also applies to stablecoins. Cost-basis and trading activity can be reconciled by generating the U.S. Tax Form 8949 on the IRS Website.
Why is the trading volume shown on Form 1099-B form much higher than expected?
Please note that Form 1099-B is representative of Notional Trading Volume.
For example, if a client funded their account via ACH for $5,000 (which automatically is traded into GUSD), then converted the $5,000 GUSD into USDC, and then bought $5,000 worth BTC, these transactions would collectively be reflected as $15,000 on Form 1099-B. For this reason, you may see the amount reported on your 1099-B to be higher than your current account balance.
What is the U.S. Tax Form 1099-MISC?
According to the IRS, earning income on crypto is considered a taxable event in the U.S., and cryptocurrencies are generally treated as property (similar to gold or shares in publicly owned companies) for tax purposes. That means that interest paid to you on crypto assets are payments of property, making them subject to reporting through Form 1099-MISC, Miscellaneous Information (also known as simply Form 1099-MISC).
U.S. taxpayers who have earned more than $600.00 USD of crypto interest and/or received any crypto bonuses or promotions payouts in a given year will receive Form1099-MISC.
What is the U.S. Tax Form 1099-B?
Form 1099-B provides transactional information detailing capital gains and losses from disposing of capital assets. At this time, cryptocurrency is classified as property. The information on Form 1099-B helps you fill out Schedule D and Form 8949.
When you sell something for more than it cost you to acquire it, the profit is a capital gain and may be taxable. On the other hand, if you sell something for less than you paid for it, then you may have a capital loss, which you might be able to use to reduce your taxable capital gains or other income.
I didn’t receive Form 1099-MISC, what should I do?
Only U.S. taxpayers who have earned more than $600.00 USD of crypto interest and/or received any crypto bonuses or promotions payouts in a given year will receive Form 1099-MISC. Alternative solutions are as follows:
- U.S.-based clients:
- Download transaction history CSVs for trading activity.
- Download each Monthly Earnings Statement and sum the amounts to find the annual total.
- Link account to TaxBit or another cryptocurrency tax provider, and they may be able to consolidate the data and provide an annual report.
- Non-U.S.-based clients:
- Download transaction CSVs for trading activity.
Download each Monthly Earning Statement and sum the amounts to find the annual total.
Can I download my Transaction History / CSV?
All transactions for the Wallet and/or Interest Account are available for review on the “Dashboard,” or the first page you see after sign in. Simply scroll to the bottom of the Dashboard screen to find them. The transaction table shows all transactions including: wires transfers in, ACH transfers in, trades, transfers to and from Wallet and BIA, and, where applicable, interest earnings, credit card rewards and promotion rewards.
To download a complete transaction history, click the “download” icon (highlighted in the image below). By default, all transactions are included. To filter by transaction type or a date range, use the “Type” and/or “Date” filters before downloading.
Did I receive interest for November?
Clients’ November BIA interest was based on balances at the time of the platform pause on November 10, 2022 and accrued from November 1 to November 28, 2022, the day BlockFi filed for chapter 11. Please note that no November interest payments have been made, and November interest statements were not issued.
Why are certain of my trades not reflected on my tax forms?
Trading activity that took place following the platform pause on November 10, 2022 at 8:15 p.m. (prevailing Eastern Time) is not reflected on your tax forms.
Balances displayed on BlockFi’s User Interface may not properly reflect underlying balances at the time of the platform pause, as it took BlockFi a period of time following the platform pause to fully disable the transactional request functionality of BlockFi’s client-facing user interface. Attempted transactions during this time period did not actually take place.
How are credit card rewards treated for tax purposes?
Credit card rewards are treated as rebates and are not taxable, thus will not be reported on Form 1099-MISC. While the rewards on the credit card would not be treated as income at time of payment, fluctuations in value may have potential tax implications.
Any future trading activity that you conduct, including any credit card rewards received, may generate gains or losses that may be taxable and thus included on Form 1099-B.
We recommend you consult with your tax advisor with any questions for the tax implications related to credit card rewards.
I have gains from 2022, but my gains are locked up in BlockFi, and I am uncertain of when and how much of it I will receive back. Do I still have to report those gains in my tax filing?
BlockFi does not provide tax advice and recommends that clients speak with a tax or accounting professional.
If I am unable to recover 100% of my assets, am I able to claim the losses for tax purposes?
BlockFi does not provide tax advice and recommends that clients speak with a tax or accounting professional.
Last updated on February 17th, 2023