Nebraska Crypto Taxes 2026: Form 1099-DA Reporting & Compliance Guide

For the 2026 tax year, Nebraska crypto taxes are undergoing significant changes. The IRS has introduced Form 1099-DA, a new digital asset reporting form that fundamentally changes how you report cryptocurrency transactions. Whether you’re a casual Bitcoin investor or an active trader, understanding these Nebraska crypto taxes rules is essential to stay compliant and avoid costly penalties.

Table of Contents

• Key Takeaways
• What Is Form 1099-DA?
• Gross Proceeds vs. Cost Basis: What’s the Difference?
• What Are Nebraska’s Specific Crypto Tax Requirements?
• How Does International CARF Reporting Affect Nebraska Residents?
• How Do You Calculate Taxable Gains and Losses from Crypto?
• What Are Common Crypto Tax Mistakes to Avoid?
• Uncle Kam in Action
• Next Steps
• Frequently Asked Questions

Key Takeaways

• Form 1099-DA is mandatory: All crypto transactions from 2025 income must be reported on the new Form 1099-DA for the 2026 tax season.
• Gross proceeds reporting required: For 2025 transactions, brokers must report gross proceeds; cost basis is optional but becomes mandatory for 2026+ trades.
• February 17, 2026 deadline: Your broker must provide you with a receipt showing 1099-DA information by this date.
• CARF affects offshore crypto: Over 70 countries now participate in the Crypto Asset Reporting Framework, eliminating the era of unreported offshore holdings.
• Nebraska follows federal rules: As a Nebraska resident, you report crypto using federal Form 1099-DA with no separate state-level crypto tax form required.

What Is Form 1099-DA?

Prior to tax year 2025, cryptocurrency transactions were reported using Form 1099-B, the same form used for stocks, bonds, and mutual funds. This created confusion because crypto assets have unique characteristics that don’t align with traditional securities reporting.

The IRS recognized this problem and created Form 1099-DA specifically for digital assets. For the 2026 tax season (reporting 2025 income), all crypto transactions must now use this dedicated form.

How Does 1099-DA Compare to 1099-B?

Feature	Form 1099-B (Old)	Form 1099-DA (New)
Asset Type	Stocks, bonds, mutual funds	Crypto & digital assets only
Asset ID	Ticker symbol	Digital Token Identifier (DTI)
Gross Proceeds	Required	Required
Cost Basis (2025)	Required	Optional
Cost Basis (2026+)	N/A	Mandatory
Transfer Tracking	Not applicable	Wallet transfer dates tracked

This transition from Form 1099-B to Form 1099-DA represents a significant shift in how the IRS tracks cryptocurrency. The new form includes fields for transfer-in dates, which help the IRS identify wash sales and suspicious trading patterns.

Gross Proceeds vs. Cost Basis: What’s the Difference?

Understanding Gross Proceeds

Gross proceeds are the total dollar amount you receive when you sell a crypto asset on a broker. For example, if you sell 2 Bitcoin for $90,000 total (after subtracting transaction fees), your gross proceeds are $90,000.

The critical issue is that gross proceeds alone don’t tell the IRS your taxable gain. If you originally paid $40,000 for those 2 Bitcoin, your taxable gain is only $50,000, not $90,000.

Understanding Cost Basis

Cost basis is what you paid for the crypto asset when you originally acquired it, including transaction fees. For the 2025 tax year, your broker is not required to report cost basis on the Form 1099-DA. This is a major gap that can lead to tax overstatement.

However, starting January 1, 2026, all new transactions must include mandatory cost basis reporting on the Form 1099-DA. This means for 2026 trades and beyond, the IRS will have both gross proceeds and cost basis information.

What Are Nebraska’s Specific Crypto Tax Requirements?

Nebraska’s Alignment with Federal Rules

Unlike some states that have created their own crypto tax rules, Nebraska has not developed state-specific digital asset reporting requirements. Instead, Nebraska residents simply use the federal Form 1099-DA to report all crypto transactions.

This simplicity is beneficial because it means you don’t need to maintain separate Nebraska-specific crypto records. Your federal 1099-DA reporting directly translates to Nebraska state income tax compliance.

Critical 2026 Deadlines for Nebraska Crypto Taxpayers

• December 31, 2025: Last day for transactions to be included in 2025 tax year (now past)
• January 1, 2026: All new transactions require cost basis reporting on 1099-DA
• February 17, 2026: Your broker must provide you a receipt with 1099-DA information
• March 31, 2026: Brokers must e-file 1099 forms with the IRS
• April 15, 2026: Deadline to file Nebraska and federal tax returns

Meeting these deadlines is critical. The February 17 deadline is particularly important because you need time to reconcile your broker’s 1099-DA with your own records before the April 15 filing deadline.

How Does International CARF Reporting Affect Nebraska Residents?

What Is CARF and Why Does It Matter?

The Crypto Asset Reporting Framework (CARF) is a global standard created by the OECD (Organisation for Economic Co-operation and Development). It’s designed to align crypto reporting across countries and eliminate the ability to hide unreported crypto holdings offshore.

Over 70 countries have committed to CARF, and as of January 2026, more than 50 jurisdictions have implemented it. This means crypto exchanges, brokers, and custodial wallet providers in those countries must now collect self-certification information from their customers, including tax ID and tax residency information.

CARF Reporting Timeline

CARF follows a specific reporting timeline that Nebraska residents should understand:

• 2026: Crypto firms track transactions and collect customer information
• 2027: First round of automatic reporting to tax authorities happens
• Ongoing: Annual automatic exchanges between participating jurisdictions

FBAR and FATCA Requirements Still Apply

Before CARF, U.S. taxpayers with foreign crypto accounts already had to file FBAR (Foreign Bank Account Reporting) and FATCA (Foreign Account Tax Compliance Act) forms if thresholds were exceeded.

These requirements remain in effect and complement CARF:

• FBAR: Required if you have $10,000+ in aggregate foreign accounts at any point during the year
• FATCA Form 8938: Required if you have $50,000-$100,000+ in foreign financial assets (depending on filing status and residency)

How Do You Calculate Taxable Gains and Losses from Crypto?

Step-by-Step Gain/Loss Calculation Example

Let’s walk through a realistic 2025 crypto transaction for a Nebraska resident using verified 2026 figures:

Scenario: You purchased 1 Bitcoin on March 15, 2024, for $52,000 (including a $200 purchase fee). On November 20, 2025, you sold it for $48,500 (after a $500 selling fee).

• Purchase price: $52,000
• Selling price: $48,500
• Cost basis (including all fees): $52,000
• Adjusted proceeds (sale price minus fees): $48,000
• Taxable loss: $4,000

In this example, you have a capital loss of $4,000. You can use this loss to offset other capital gains, or up to $3,000 of losses against ordinary income (with the remainder carrying forward).

Holding Period: Short-Term vs. Long-Term Gains

How long you hold crypto before selling determines your tax rate:

Holding Period	Tax Treatment	Tax Rate (2026)
Less than 1 year	Short-term capital gain	Your ordinary income tax rate (10%-37%)
More than 1 year	Long-term capital gain	0%, 15%, or 20% (preferred rates)

Long-term capital gains receive favorable tax treatment, so holding crypto for over one year can significantly reduce your tax liability.

What Are Common Crypto Tax Mistakes to Avoid?

Mistake #1: Not Reporting Crypto Because You Didn’t Receive a 1099-DA

Many crypto investors believe that if they don’t receive a Form 1099-DA, they don’t have to report the income. This is absolutely incorrect. The IRS expects you to report all taxable transactions regardless of whether you receive a 1099.

In fact, your broker will e-file your 1099-DA directly with the IRS by March 31, 2026. If you don’t report matching income on your return, the IRS will identify the discrepancy and investigate.

Mistake #2: Ignoring Cost Basis Gaps on Your 2025 1099-DA

For 2025 transactions, brokers are not required to report cost basis. This gap creates a significant problem: your 1099-DA shows gross proceeds, but not the cost basis needed to calculate your actual gain.

If you rely solely on the 1099-DA without tracking cost basis yourself, you could overstate your taxes by thousands of dollars.

Mistake #3: Failing to Track Foreign Crypto Holdings

If you hold crypto on foreign exchanges (like Binance, Kraken, or other overseas platforms), you must comply with FBAR and potentially FATCA requirements. Failure to do so can result in penalties of 50% of the unreported amount.

With CARF now live in 50+ jurisdictions as of January 2026, foreign exchanges are reporting U.S. customer holdings to the IRS. The era of hiding offshore crypto is over.

 

Uncle Kam in Action: Nebraska Crypto Investor Saves $8,400 with Proper 1099-DA Reporting

Client Snapshot: Mark, a 42-year-old Omaha-based software developer with W-2 income of $85,000, began investing in cryptocurrency in 2023 as a side interest. By 2025, he had accumulated significant unrealized gains but had never properly tracked his crypto transactions for tax purposes.

Financial Profile: Mark’s 2025 crypto transactions included 12 separate trades across Bitcoin, Ethereum, and Solana, totaling gross proceeds of $47,500. He also held a small portfolio on a foreign exchange (worth $15,000) that he had never reported to the IRS.

The Challenge: Mark was terrified when he realized the IRS would be introducing Form 1099-DA for the 2026 tax season. He feared that without proper cost basis documentation, he’d owe taxes on the full $47,500 in gross proceeds, even though his actual profit was much smaller. Additionally, he had completely overlooked the foreign exchange holdings and the FBAR requirement.

The Uncle Kam Solution: Our Nebraska tax preparation team worked with Mark to:

1. Reconstructed his complete transaction history from exchange records and bank statements
2. Calculated his actual cost basis ($38,200) versus the 1099-DA gross proceeds ($47,500)
3. Identified his true long-term capital gain ($9,300) after accounting for holding periods and fees
4. Filed the necessary FBAR form for his foreign exchange holdings
5. Ensured all 1099-DA information was properly reconciled on his 2026 return

The Results:

• Tax Savings: $8,400 (by properly documenting cost basis and avoiding overstating his gains)
• Investment: $2,500 one-time service fee for comprehensive crypto tax consultation and filing
• Return on Investment (ROI): 3.4x return in the first year, plus ongoing audit protection and peace of mind

This is just one example of how our proven tax strategies have helped clients achieve significant savings and financial peace of mind. Mark now has a proper system for tracking his 2026+ crypto transactions, ensuring compliance with the new mandatory cost basis reporting rules.

Next Steps

Don’t wait until April to deal with your 2026 crypto taxes. Take action now:

• Step 1: Gather all 2025 crypto transaction records (exchange statements, bank records, wallet transfers)
• Step 2: Calculate your cost basis for each transaction and determine holding periods (short-term vs. long-term)
• Step 3: Wait for your 1099-DA forms from brokers (February 17 deadline) and reconcile them with your records
• Step 4: Check if you have foreign crypto holdings requiring FBAR or FATCA reporting
• Step 5: Consult with a professional tax strategy advisor experienced in crypto tax compliance before April 15

The stakes are high with CARF now in effect. Taking action now protects you from audit risk and ensures you’re not overpaying taxes.

Frequently Asked Questions

What happens if I don’t have cost basis information for my 2025 crypto trades?

You must reconstruct it. Review your exchange records, bank statements, wallet transfers, and any email confirmations. If reconstruction is impossible, the IRS may assume your cost basis is zero, making your entire proceeds taxable. This can result in a significant tax bill and audit exposure.

Do I need to report crypto purchases, or only sales?

Only sales and exchanges are reportable transactions for income tax purposes. Purchasing crypto with U.S. dollars is not a taxable event. However, purchasing crypto with other crypto (an exchange) is a taxable event that requires reporting the fair market value at the time of exchange.

Does staking crypto generate taxable income?

Yes. Staking rewards are treated as ordinary income at fair market value on the date you receive them. If you later sell those staked tokens at a profit, you also have a capital gain. This creates a double-tax scenario that many crypto investors overlook.

Does CARF affect me if I’m a U.S. citizen living in the U.S.?

Only if you hold crypto on foreign exchanges. If your crypto is held on U.S.-based exchanges (Coinbase, Kraken USA, etc.), CARF doesn’t directly apply to you. However, those U.S. exchanges still file Form 1099-DA with the IRS, so you must report anyway.

What is a wash sale in crypto, and does it apply?

Wash sale rules (selling at a loss to claim a deduction, then repurchasing the same asset within 30 days) technically don’t apply to crypto under current IRS guidance. However, the IRS has indicated it’s monitoring this area, and proposed rules could change this treatment in the future. For 2026, you can generally claim crypto losses even if you repurchase quickly.

Should I hire a crypto tax professional?

If you have more than a few transactions, have foreign holdings, or received staking rewards, hiring a professional is highly recommended. The cost of professional help is typically offset by tax savings and audit protection, especially given the complexity of 1099-DA reporting for 2026.

What if I made a mistake on a previous year’s crypto tax return?

File an amended return using Form 1040-X. Generally, you have three years to amend a return. If you had unreported foreign accounts, the statute of limitations is longer, and you should consider the IRS’s voluntary disclosure program to minimize penalties.

Last updated: February, 2026

Related Resources

• IRS Revenue Procedure 25-57: 2026 Inflation Adjustments & Tax Brackets
• IRS Newsroom: Form 1099-DA Digital Asset Reporting
• Uncle Kam’s Comprehensive Tax Guides & 2026 Planning Resources
• FinCEN: FBAR (Foreign Bank Account Reporting) Requirements
• 2026 Tax Preparation & E-Filing Services for Nebraska Residents

 

This information is current as of 02/03/2026. Tax laws change frequently. Verify updates with the IRS (IRS.gov) or consult a qualified tax professional if reading this article later or in a different tax jurisdiction.