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2025›Instructions for Form 1040-SS›! extend the time to pay your tax. Any interest due›Specific Instructions

Digital Assets

Instruction 1040-SS — Instructions for Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) · 2026-10-03 edition · updated 2026-10-04 · United States

Digital assets are any digital representations of value that are recorded on a cryptographically secured distributed ledger or any similar technology. For example, digital

assets include non-fungible tokens (NFTs) and virtual currencies, such as cryptocurrencies and stablecoins. If a particular asset has the characteristics of a digital asset, it will be treated as a digital asset for federal income tax purposes.

Check the “Yes” box next to the question on digital assets on page 1 of Form 1040-SS, if at any time during 2025, you (a) received (as a reward, award, or payment for property or services); or (b) sold, exchanged, or otherwise disposed of a digital asset (or any financial interest in any digital asset).

For example, check “Yes” if at any time during 2025 you:

  • Received digital assets as payment for property or services provided;

  • Received digital assets as a result of a reward or award;

  • Received new digital assets as a result of mining, staking, and similar activities;

  • Received digital assets as a result of a hard fork;

  • Disposed of digital assets in exchange for property or services;

  • Disposed of a digital asset in exchange or trade for another digital asset;

  • Sold a digital asset; or

  • Otherwise disposed of any other financial interest in a digital asset.

You have a financial interest in a digital asset if you are the owner of record of a digital asset, or have an ownership stake in an account that holds one or more digital assets, including the rights and obligations to acquire a financial interest, or you own a wallet that holds digital assets.

The following actions or transactions in 2025, alone, generally don’t require you to check “Yes”:

  • Holding a digital asset in a wallet or account;

  • Transferring a digital asset from one wallet or account you own or control to another wallet or account that you own or control; or

  • Purchasing digital assets using U.S. or other real currency, including through the use of electronic platforms such as PayPal and Venmo.

If you used a broker to effect the sale of a digital asset, your broker should send you Form 1099-DA. You must answer the digital asset question on page 1 of Form 1040-SS whether or not you received a Form 1099-DA.

Do not leave the question unanswered. You must answer “Yes” or “No” by checking the appropriate

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▸Contents — Instruction 1040-SS — Instructions for Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)
Instruction 1040-SS — Instructions for Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)

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