Yes, eToro reports your crypto activity to the Internal Revenue Service (IRS) on Form 1099-DA, covering fiat sales and crypto-to-crypto trades, both of which are taxable disposals. It also issues Form 1099-MISC for income such as referral bonuses.
eToro mails the 1099-MISC to you rather than delivering it through your account, and its reporting threshold recently rose from $600 to $2,000 under the One Big Beautiful Bill Act. As a multi-asset platform, eToro reports crypto separately from your stock and options activity.
This guide explains what eToro reports to the IRS, how the IRS cross-checks it with your return, why some 1099-DA forms may lack cost basis, and how to report your crypto activity in 3 steps.
Key Takeaways
- eToro also reports referral bonuses and other non-investment income on Form 1099-MISC if it’s above $2,000 for TY 2026.
- eToro issues each tax document as its own standalone file rather than combining them, so your crypto activity, and options activity each get a separate form.
How eToro Reports to the IRS?
eToro’s tax reporting is split across five distinct documents depending on which asset class generated the activity, a structure that differs from platforms that bundle everything into one file. The table below focuses on what’s relevant to crypto specifically; confirm current thresholds before relying on them, since digital asset rules have shifted more than once already.
Form / Requirement | Status for Tax Year 2026 |
Form 1099-DA for gross proceeds | Required for crypto sold for fiat and for crypto-to-crypto trades, both treated as taxable disposals. No minimum threshold for crypto-to-fiat sale, every sale is reported, regardless of size. Stablecoin sales are generally subject to a $10,000 reporting threshold, meaning eToro reports them once the applicable proceeds exceed that amount. |
Form 1099-DA for cost basis | Required starting tax year 2026, under the same general broker cost-basis mandate applying across all US exchanges. |
Form 1099-MISC for rewards | Required once qualifying income crosses $2,000, following the threshold raised under the One Big Beautiful Bill Act. Delivered by physical mail to your registered address, not through your account. |
Form 1099-B / Form 1099-K | Not addressed by any of eToro’s official sources for crypto activity specifically. eToro does issue separate Stocks and Options Consolidated 1099 forms, but neither of eToro’s crypto-specific pages confirms or denies a 1099-B or 1099-K for digital assets. |
Backup withholding | Not applied for tax year 2026. IRS Notice 2025-33 extends relief from the 24% backup withholding requirement (Section 3406) through calendar year 2026; withholding is scheduled to begin on transactions from January 1, 2027. |
CARF (Crypto-Asset Reporting Framework) | The US is not a formal CARF signatory. Form 1099-DA serves as the domestic equivalent, and cross-border information exchange for US persons currently runs through FATCA rather than CARF. |
Note: Crypto tax documents are typically available by February 15, delivered through your account, with an email notification once ready. One quirk worth knowing: downloading your 1099-DA isn’t currently available in the eToro AI app, you’ll need the standard eToro app or the web version to access it.
How Does the IRS Track Your eToro Transactions?
Form 1099-DA is only one signal the IRS can access. In addition to the forms eToro files, your account’s identity verification, automated matching against your filed return, and the IRS’s broader legal authority each add another layer of visibility beyond what any single form captures.
KYC and TIN-Linked Account Data
eToro collects your name, address, and Taxpayer Identification Number (TIN) as part of its standard account verification. It files this information alongside every 1099-DA and 1099-MISC it submits. Once your identity is on record, it remains linked to your account activity, regardless of which form later reports a specific transaction. Because eToro offers stocks, options, and crypto under one account, that identity link covers all three. However, the tax forms for each type of activity remain separate.
Form 1099-DA and IRS Underreporter (AUR) Matching
The IRS Automated Underreporter program is an automated matching system. It compares the 1099-DA data eToro files with the numbers on your tax return. Since eToro’s 1099-DA reports gross proceeds only, not profit or loss, a difference between the amount on your form and your actual calculated gain does not necessarily mean there is an error. Even so, a mismatch can trigger a CP2000 notice or a CP2501 notice asking you to explain the difference.
John Doe Summonses and Enforcement
Under 26 U.S.C. §7609(f), the IRS can seek a “John Doe” summons when it needs records about a group of taxpayers whose individual identities it does not yet know. To do so, the IRS must show a federal court that the group is an ascertainable class and that there is a reasonable basis to suspect noncompliance.
No John Doe summons specifically targeting eToro have been identified as of this writing. However, that does not shield eToro from one in the future. The IRS’s authority to seek a summons applies to any US exchange, and the lack of a documented case today is a fact about the present, not a guarantee about the future.
Why Your 1099-DA May Not Match Your Actual Gain?
As per eToro, your 1099-DA is a tax document, not a performance statement. It reports gross proceeds rather than your actual profit or loss. Therefore, the gap can become larger when you sell crypto that you acquired before eToro had a cost-basis record for it or transferred into eToro from another platform or wallet.
This is common for eToro users who move crypto between platforms rather than something unique or unusual. For example, Maria bought Cardano on another platform in 2023, transferred it to eToro in 2024, and sold it in 2026 for $6,000. Because eToro did not record her original purchase, its 1099-DA reports $6,000 in gross proceeds without offsetting basis, even though Maria’s actual cost was $4,100 and her gain was only $1,900.
As a result, without your own basis records, if you fail to report the cost basis and mark it as zero, you will be making the apparent gain equal to the entire sale price. Therefore, if any of your 2026 eToro activity involves crypto you did not originally acquire through eToro, reconcile your purchase records with your 1099-DA before filing. KoinX can import your full cross-platform history and fill the basis gaps that eToro’s records cannot cover.
How to Download Your eToro 1099-DA and Transaction History?
Since eToro issues crypto tax documents separately from your stock and options forms, finding the right document means knowing exactly where to look within Settings, not just opening the first tax form you see.
Download Your Form 1099-DA
You can download 1099-DA only on the web:
- Login to eToro account.
- Click the Settings gear icon in the left-hand menu.
- Then select Account.
- Under Documents, click View next to 1099-DA Reports.
- Locate your 1099-DA for tax year 2026 and download it.
- Export the statement in CSV, convert it into KoinX’s Custom File Format either manually or through KoinX’s AI and import it into KoinX using Custom Integration.
So why wait? Upload your eToro account statement to KoinX and reconcile your 1099-DA against your full crypto transaction history, including basis for anything acquired before you moved it to eToro.
Download Your Transaction History
eToro does not offer a dedicated transaction history for crypto transactions, instead, you can download an Account Statement. This report covers your crypto and stock activity (not options) and is available anytime, separate from your tax forms. This can be useful for a full transaction-level view rather than just the gross-proceeds figures on your 1099-DA.
- From the same Documents section (as above), look for your Account Statement rather than a 1099 form and click View.
Common Misconceptions About eToro and IRS Reporting
eToro’s multi-asset structure and gross proceeds reporting can create confusion about what the IRS receives and what you actually need to report. However, these points become clearer when you separate eToro’s different tax forms from the broader rules that apply to crypto transactions.
eToro Doesn't Report Crypto Trades, Only Stocks
This is false. eToro issues Form 1099-DA specifically for your crypto activity, while its stock and options activity appears on separate tax forms. Stocks are reported through the Stocks Consolidated 1099, and options are reported through the Options Consolidated 1099. Therefore, having your stocks, options, and crypto on the same eToro account does not mean the activity gets combined into one tax document. Each asset class has its own dedicated reporting form.
Trading One Crypto for Another on eToro Isn't Reportable Since I Never Touched Fiat
No, a crypto to crypto trade can create a taxable disposal even when you never convert the asset to US dollars. Under IRS broker rules, exchanging one digital asset for another is treated as a disposal of property. Therefore, eToro’s Form 1099-DA can include crypto to crypto trades alongside sales for fiat. The absence of cash does not remove the tax reporting requirement or the need to calculate your gain or loss.
My 1099-DA Shows My Actual Profit or Loss
Your 1099-DA does not necessarily show your actual profit or loss. eToro’s guidance states that the form reports gross proceeds, which represent the amount received from a disposal rather than the profit you earned. To calculate your actual gain or loss, you need to subtract your cost basis from the proceeds. This distinction becomes especially important when eToro does not have complete basis information for crypto transferred in from another platform or wallet.
If I Never Cash Out to USD, I Don't Owe Anything
Not cashing out US dollars does not automatically eliminate your tax liability. A disposal can create a taxable event even when you continue holding your value in cryptocurrency. For example, trading one cryptocurrency for another on eToro can trigger a reportable gain or loss in the same way as selling crypto for dollars. Therefore, you need to track taxable disposals based on what you exchanged, not simply whether you withdrew fiat.
Since My 1099-DA and Account Statement Don't Match, One of Them Is Wrong
A difference between these documents does not automatically mean either one contains an error. Your 1099-DA focuses on taxable disposals that eToro reports, while your Account Statement captures a broader range of transactional activity. Because the documents serve different purposes, their totals do not need to match. Therefore, you should use each document for what it is designed to show rather than treating one as a direct reconciliation of the other.
Small Crypto Trades on eToro Won't Get Reported
Small transactions are not automatically excluded from Form 1099-DA reporting because of their size. There is no minimum transaction threshold that removes a crypto sale from the form, so eToro reports sales regardless of how large or small they are. As a result, you should not assume that a small trade is outside the IRS’s view. The automated matching process can compare the reported data with your tax return across the full dataset.
How to Report Your eToro Trades Correctly?
Reporting your eToro crypto activity correctly starts by separating it from your stock and options activity, since eToro provides separate tax documents for each asset class. From there, calculate your actual crypto gains or losses, reconcile them with your 1099-DA, and then report the final figures on the appropriate tax forms.
Step 1: Calculate Your Actual Gain or Loss
Start with your eToro crypto transaction history rather than relying only on the gross proceeds shown on your 1099-DA. Calculate your gain or loss for each disposal by subtracting your actual cost basis from the proceeds, including crypto to crypto trades. KoinX can automate this calculation and include the correct basis for assets transferred from other platforms.
Step 2: Reconcile Against Your 1099-DA
Once you have calculated your gains or losses, compare your figures with the information eToro reported on your 1099-DA. If the numbers differ, identify why before filing. The difference could result from missing basis on transferred assets, an untracked crypto to crypto trade, or the expected difference between your broader Account Statement and the 1099-DA.
Step 3: File Form 8949 and Schedule D
After reconciling the figures, report each crypto disposal individually on Form 8949 and carry the totals to Schedule D. If you received 1099-MISC income, such as referral bonuses, report it on Schedule 1. Finally, keep your transaction records and reconciliation details in case the IRS sends a CP2000 notice asking you to explain a discrepancy.
Conclusion
eToro reports your crypto activity to the IRS through Form 1099-DA, including covered sales and crypto to crypto transactions, while qualifying referral income is reported through Form 1099-MISC. Your TIN linked account information also connects your stocks, options, and crypto activity to your taxpayer identity. However, this reporting does not necessarily show your actual taxable gain or loss, particularly when cost basis is missing for assets transferred into eToro.
That makes reconciling your 1099-DA with your own purchase records especially important if you have moved crypto from another platform. You remain responsible for calculating and reporting the correct gain or loss, even when eToro’s information return does not contain the complete basis. Sign up on KoinX so it can simplify this process by importing your eToro data, calculating your actual gains and losses, and reconciling them before you file.
Frequently Asked Questions
How Do I Check What eToro Has Reported to the IRS About Me?
Download your Form 1099-DA and any applicable 1099-MISC from the Documents section under Account Settings, these show exactly what eToro filed with the IRS. You can also check your IRS Online Account transcript, which lists every information return filed against your TIN, including anything eToro submitted on your behalf.
Will I Get a Tax Notice if I Traded Crypto on eToro but Didn't File?
Possibly. The IRS’s Automated Underreporter system matches eToro’s 1099-DA data against your filed return, and an unreported disposal can trigger a CP2000 notice proposing an adjustment. Separately, as part of a targeted compliance effort, the IRS may also send Letter 6173 or Letter 6174-A asking you to review your reporting.
Does eToro Withhold Tax on My Crypto Trades?
No, not for tax year 2026. IRS Notice 2025-33 extends relief from the standard 24% backup withholding requirement through calendar year 2026, so no withholding applies to your eToro crypto sales this year. That relief is scheduled to end on transactions from January 1, 2027, generally only when a valid TIN isn’t on file.
Does Trading Crypto for Crypto on eToro Get Reported to the IRS?
Yes. eToro’s Form 1099-DA reports crypto-to-crypto trades the same way it reports crypto sold for fiat, since both are treated as taxable disposals of property under IRS broker rules. Whether you exchanged Bitcoin for Ethereum or sold it outright for dollars, eToro reports the transaction either way.
Why Can't I Find My 1099-DA in the eToro AI App?
Downloading tax documents currently isn’t supported in the eToro AI app at all. To access your 1099-DA, you’ll need to switch to the standard eToro app or log in through the web version instead, then navigate to Settings, Account, and Documents to find and download it.
Does eToro Report Crypto if I Only Held It?
No. Holding crypto, or transferring it between wallets or accounts you personally own, isn’t a taxable event, so eToro has nothing to report on Form 1099-DA for that activity. Referral bonuses and similar non-investment income are the exception, reported separately on Form 1099-MISC once you cross the applicable threshold.
