Binance Taxes 2026: Does Binance Report to the IRS? (Binance.US 1099-DA Guide)
Binance is the largest crypto exchange brand in the world, but US tax rules around it confuse a lot of people — mainly because there are two separate platforms. This guide explains the critical difference between Binance.com and Binance.US, exactly what Binance.US reports to the IRS, how each transaction type is taxed, how to pull your forms, and the mistakes that cost Binance.US users money in 2026.
Binance.com vs Binance.US: the critical distinction
This is the first thing every US user must understand:
- Binance.com (global) — the worldwide platform. It is not available to US residents and does not legally serve US customers. It does not report to the IRS. Using a VPN to access it does not change your US tax obligations.
- Binance.US — the US-regulated, separate company. It collects KYC information, complies with US law, and does report to the IRS. This is the platform US users can legally use, and it issues US tax forms.
Does Binance.US report to the IRS in 2026?
Yes. Binance.US is a US broker and reports customer activity directly to the IRS. For the 2026 filing season:
| Form | When you get it | What it reports |
|---|---|---|
| 1099-DA | If you sold, traded, or spent crypto in 2025 (any amount) | Gross proceeds from disposals |
| 1099-MISC | If you earned $600+ in staking/rewards (2025) | Ordinary income from crypto |
Note the income threshold for 1099-MISC rises to $2,000 for the 2026 tax year. The 1099-DA has no minimum threshold — it is issued for any taxable disposal. Binance.US does not currently issue Form 1099-B or 1099-K.
What is Form 1099-DA and the cost basis trap
Form 1099-DA is the new digital-asset broker reporting form. The timeline:
- 2025 tax year (forms issued early 2026): Binance.US reports gross proceeds only, available to download as of early February 2026
- 2026 tax year onward: Binance.US also reports cost basis for covered assets (acquired and held on Binance.US)
How is Binance.US crypto taxed?
Capital gains (disposals)
Selling, trading, or converting crypto is a taxable disposal. Note Binance.US's "Convert" feature is treated identically to a trade — converting BTC to ETH is a disposal of BTC.
- Short-term (1 year or less): ordinary rates 10–37%
- Long-term (over 1 year): 0%, 15%, or 20%
- Plus 3.8% NIIT for high earners, plus state tax (0% in FL/TX/WY, up to 13.3% CA)
Ordinary income (earnings)
Binance.US staking is taxed in two layers. First, each reward is ordinary income at fair market value when you gain control (Rev. Rul. 2023-14). Binance.US credits staking rewards on a recurring schedule, so you may have many small income events across the year. Second, that value becomes the reward's cost basis, so when you later sell, you have a separate capital gain or loss.
How to do your Binance.US taxes in 2026 (step by step)
- Download your forms from the Tax Reports page: 1099-DA and 1099-MISC if issued.
- Use the read-only Tax API rather than manual CSV when possible — it captures small recurring rewards and Convert events that are easy to drop by hand.
- Reconcile cost basis for transferred-in or pre-2026 crypto. Find original purchase price and fees.
- Use the Transaction History Report tool for a complete record beyond the 1099 forms.
- Calculate gain or loss for each disposal: proceeds minus cost basis.
- Separate income — staking and rewards go to ordinary income.
- Report disposals on Form 8949 and Schedule D, checking the covered/non-covered box correctly.
- Report income on Schedule 1 "Other Income" (or Schedule C for business).
- Answer the digital-asset question on Form 1040 truthfully.
Worked example: Binance.US long-term sale
Scenario: You bought 2 ETH on Binance.US in 2024 for $5,000. You sold them in March 2026 for $9,000. Annual income $80,000. You live in Florida.
- Proceeds: $9,000
- Cost basis: $5,000
- Gain: $4,000 (long-term)
- Federal LTCG rate at $80k: 15%
- Federal tax: $4,000 × 15% = $600
- Florida state tax: $0
- Total tax: $600
Worked example: Binance.US staking + convert
Scenario: In 2026 you earned $190 in staking rewards and did a BTC-to-SOL convert with a $280 short-term gain. Annual income $70,000.
- Staking: $190 ordinary income on Schedule 1
- Convert (BTC to SOL): $280 short-term capital gain on Form 8949
- Federal rate at $70k: 22%
- Tax on staking: $190 × 22% = $42
- Tax on convert gain: $280 × 22% = $62
- Total: $104 — three different rules (income, short-term gain) on one return
Backup withholding warning
If you have not verified your tax status with Binance.US via a W-9, you can face 24% federal backup withholding on proceeds, plus limited trading access beginning January 1, 2027. Confirm your tax information is on file.
Common Binance.US tax mistakes
- Confusing Binance.com and Binance.US. Only Binance.US serves and reports for US users.
- Filing on 1099-DA proceeds alone. Without cost basis, you drastically overpay.
- Missing recurring staking rewards. Dozens of small entries are easy to drop with manual CSV — use the API.
- Treating Convert as non-taxable. Converting one crypto to another is a disposal.
- Ignoring transferred-in basis. Binance.US has no record of what you bought elsewhere.
- Not verifying W-9 status. Triggers 24% backup withholding.
- Answering the 1040 digital-asset question "No" when you had activity.
Frequently asked questions about Binance taxes
Does Binance report to the IRS?
Binance.US reports to the IRS via Form 1099-DA (sales) and Form 1099-MISC (income over $600). The global Binance.com platform does not serve US customers and does not report to the IRS. US users can only legally use Binance.US, which complies with US tax reporting requirements.
What is the difference between Binance.com and Binance.US?
Binance.com is the global platform, not available to US residents and not reporting to the IRS. Binance.US is a separate, US-regulated company that serves US customers, collects KYC, and reports to the IRS. Using a VPN to access Binance.com does not change your US tax obligations.
Does Binance.US send tax forms?
Yes. Binance.US issues Form 1099-DA if you sold, traded, or spent crypto in 2025 (any amount) and Form 1099-MISC if you earned $600 or more in staking or rewards. Forms are available on the Tax Reports page, downloadable as of early February 2026. Even without a form, you must report all taxable activity.
Why does my Binance.US 1099-DA show no cost basis?
For the 2025 tax year, Binance.US is only required to report gross proceeds, not cost basis. Crypto transferred in from another wallet or exchange has no basis on the form, which inflates your apparent gain. You must supply the correct cost basis on Form 8949, or the IRS assumes zero basis and taxes your full proceeds.
Are Binance.US staking rewards taxable?
Yes. Staking rewards are ordinary income at fair market value when received (Rev. Rul. 2023-14). Binance.US issues a 1099-MISC if rewards exceed $600 in 2025 ($2,000 for 2026). Rewards under the threshold are still taxable and must be reported on Schedule 1. The same coins are then taxed again as a capital gain or loss when sold.
Is converting crypto on Binance.US taxable?
Yes. Binance.US's Convert feature is treated identically to a trade for tax purposes. Converting BTC to ETH is a disposal of your BTC at fair market value, creating a capital gain or loss, and an acquisition of ETH at its current value for future tracking.
What happens if I don't report Binance.US on my taxes?
The IRS receives copies of your Binance.US 1099 forms. If your return does not match, the IRS can send warning letters or trigger an audit. The IRS does not need a 1099 to investigate — it can request your data directly. Blockchain analytics also let it trace crypto moved off Binance.US to private wallets.
Can I use the global Binance.com in the US?
No. Binance.com exited the US market and blocks US users via geolocation. Accessing it through a VPN does not make it legal and does not change your tax obligations as a US person. US users should use Binance.US, which is available in most (but not all) states.
Do I need to report Binance.US if I only bought crypto?
No. Buying crypto and holding it is not a taxable event, and you will not receive a 1099-DA for purchases only. However, keep records of your purchase price and date — you will need this cost basis when you eventually sell or trade.
Bottom line for Binance users
The key fact for US users: only Binance.US serves you and reports to the IRS — the global Binance.com is off-limits and using a VPN does not change your tax obligations. Binance.US reports gross proceeds on the 1099-DA for 2025, so the biggest risk is overpaying because transferred-in crypto shows no cost basis. Use the read-only Tax API to capture recurring staking rewards and Convert events, reconcile your real cost basis, and report accurately on Form 8949, Schedule D, and Schedule 1. Verify your W-9 status to avoid 24% backup withholding, and always answer the Form 1040 digital-asset question truthfully. Use the calculator below for a quick estimate of your 2026 tax on Binance.US gains — and consult a CPA for complex transfer situations.
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