Do I need to file Tax Form 8949 for crypto if Robinhood didn't send a 1099?!

Ok but if my total gains/losses were really small (like less than $100 total), do I really need to go through all this trouble? Can't I just skip it since Robinhood didn't think it was important enough to send a form?

Yes, you're still required to report all capital gains and losses regardless of the amount. The IRS doesn't have a minimum threshold for reporting capital gains - even $1 of profit technically needs to be reported. The threshold you're referring to is just for when brokers are required to send 1099s, not whether you need to report the income. While the chances of being audited over small amounts might be low, it's still technically tax evasion to knowingly omit taxable transactions from your return. Remember that Robinhood reports account information to the IRS even if they don't send you a 1099, so there's a record of your activity.

Does it work for other exchanges too? I have crypto spread across Coinbase, Binance and a couple wallets. Really don't want to track all that manually.

I'm always suspicious of these tax tools connecting to my financial accounts. How secure is it? And are you sure it calculates everything correctly? I'd be worried about getting audited if it makes a mistake.

It absolutely works with multiple exchanges. I actually had stuff on both Robinhood and Coinbase, and it combined everything seamlessly. They support pretty much all the major exchanges and even let you import wallet transactions. Regarding security, I was hesitant at first too, but they use bank-level encryption and read-only API connections, so they can't actually make any changes to your accounts. As for accuracy, they've processed millions of transactions and generate audit-ready forms. They actually show you all the calculations so you can verify everything if you want. I compared some of my larger transactions manually just to double-check and everything matched perfectly.

How does this Claimyr thing actually work? Do they have some secret IRS number or something? I've tried calling the IRS like 5 times about a different issue and it's always "due to high call volume" BS.

Yeah right. I find it hard to believe any service can magically get through to the IRS when they're not picking up calls. Sounds like a waste of money to me. And even if you do get through, most IRS agents give different answers to the same question anyway.

It's not a secret number - they use a system that automatically redials for you when the lines are busy and holds your place in line. Once they reach an agent, you get a call back and they connect you directly. So instead of you having to waste hours redialing and waiting on hold, their system does it for you. The IRS actually does answer calls, but their capacity is limited, especially during tax season. What Claimyr does is persistent redialing during optimal times when wait times are shortest. And regarding getting different answers - that can happen, which is why I always ask for the specific IRS publication number that contains the rule they're referencing. In my experience, the agents are quite knowledgeable on basic tax issues like crypto reporting requirements.

This is terrible advice. The IRS has been investing heavily in enforcement, especially around crypto. They specifically added that cryptocurrency question on the front of Form 1040 to catch people who think they can hide crypto transactions. Just because you haven't been caught yet doesn't mean it's the right approach.

Fair point, and I should clarify I'm not suggesting tax evasion. What I meant is more about materiality - in accounting there's a concept that amounts so small they don't impact the overall picture can sometimes be disregarded. But you're right that technically all transactions should be reported. I do think the new crypto question on Form 1040 changes things. Since you now have to explicitly answer whether you had any crypto transactions, answering "no" when you did would be making a false statement on your return, which is definitely not something I'd recommend.

For cryptocurrency transactions on Form 8949, you'll typically leave column (f) blank since there are no adjustment codes that generally apply to crypto. If you received a 1099-B with basis reported to the IRS, you'd use Part I of Form 8949. But since you didn't receive a 1099-B, you should use Part II and check box C at the top ("Not reported to the IRS"). The main adjustment codes are for things like wash sales (code W), which technically don't apply to crypto (though this is a gray area that may change), or basis adjustments due to corporate actions, which also don't typically apply to crypto.

That makes sense, thanks! I was overthinking it. I'll leave column (f) blank and use Part II with box C checked. Appreciate the quick response!

Thanks for mentioning this! I didn't realize Robinhood still provides transaction history that can be used for taxes even without a 1099. I'll check that section. Did you have to manually calculate your cost basis or does their report show that too?

They do show cost basis for each transaction in the report, which makes it easier. You'll see the purchase price, sale price, and the gain/loss for each transaction. Just be careful if you made multiple purchases of the same crypto at different prices - Robinhood typically uses FIFO (first in, first out) for calculating which lots were sold, but you should verify that matches how you want to report it. If you made a lot of transactions though, it can still be time-consuming to transfer all this to Form 8949 manually. That's when those automated services others mentioned might be worth considering. But for just a few transactions, the manual approach with Robinhood's report works fine.