Crypto Taxes by Exchange

Gemini Taxes: How They Work & How to File (2026)

Gemini activity is taxable because the IRS treats crypto as property. You owe capital gains tax when you sell, trade, or spend crypto on Gemini, and ordinary income tax when you earn it, such as Earn interest. Gemini reports your activity to the IRS on Form 1099-MISC (income) and the new Form 1099-DA (sales and exchanges), so what you file needs to match, with the correct cost basis filled in.
Reviewed by a crypto tax practitioner Updated June 2026 11 min read 2026 tax year
Illustration of Gemini exchange reporting crypto trades, Earn income, and credit card rewards to the IRS on Form 1099-DA for the 2026 tax year

Key takeaways

  • Yes, Gemini reports to the IRS. Form 1099-MISC covers income of $600+, and as a US broker Gemini reports sales and exchanges on Form 1099-DA starting with the 2025 tax year.
  • Earn interest is ordinary income. Interest you received from Gemini Earn is taxed at value when paid. The frozen Earn balances and the Genesis bankruptcy recovery are a separate, complex matter.
  • Credit Card rewards have a basis catch. Crypto rewards are generally not income at receipt, but they carry low basis, so selling them later creates a capital gain.
  • The 1099-DA can overstate gains. Crypto transferred into Gemini often lands with no cost basis, so the form can report your full sale price as gain unless you fix it.

Gemini is a US-regulated exchange known for its security focus, the Gemini Earn program, ActiveTrader, and the Gemini Credit Card that pays rewards in crypto. Each of those features lands in a different tax bucket, and the Earn freeze added a uniquely messy chapter for many users. This guide covers what Gemini reports to the IRS, how every transaction type is taxed, how to pull your documents, and where Gemini users lose money to avoidable mistakes.

Does Gemini report to the IRS?

Yes. Gemini is a US-based, regulated broker and reports customer activity to the IRS. For the 2026 filing season and beyond, the forms that matter are:

  • Form 1099-MISC when you earn $600 or more in crypto income (Earn interest, certain rewards, and similar).
  • Form 1099-DA, the new digital-asset form, reporting your sales and exchanges. It began with the 2025 tax year (forms issued in early 2026).

The digital-asset question at the top of Form 1040 also asks every taxpayer whether they received, sold, or exchanged digital assets. Answering it incorrectly while Gemini reports activity under your name is exactly the kind of mismatch that triggers an IRS notice.

What the IRS actually sees Starting with 2025, the IRS receives a 1099-DA listing your Gemini proceeds. If your return does not account for those same disposals, an automated mismatch (a CP2000 notice) is the likely result.
Timeline showing the Form 1099-DA reports gross proceeds only for tax year 2025 and adds cost basis for covered assets in 2026 and beyond
The 1099-DA rollout. For 2025 the form shows proceeds only. Cost basis reporting begins with 2026 transactions, and only for assets bought and sold on the same platform.

What tax forms does Gemini give you?

Gemini issues several documents, and none of them covers everything on its own.

FormWhat it reportsWhat it misses
1099-MISCEarn interest and other income of $600+, as ordinary income.Income under $600 (still reportable); any capital gains.
1099-DASales and exchanges of digital assets. 2025: gross proceeds. 2026+: proceeds plus cost basis for covered assets.Cost basis for transferred-in or pre-coverage assets; anything off Gemini.
StatementsAccount summaries for your own records.Not pre-formatted for your tax return.
Transaction history CSVFull history with the detail needed for manual calculation.Nothing is pre-totaled; you do the math.
Heads up on ActiveTrader and the Credit Card ActiveTrader trades and Gemini Credit Card crypto rewards and spending need to be in your export. They are easy to overlook, and Credit Card crypto carries a basis you have to track for later sales.

How Gemini transactions are taxed

Every action on Gemini falls into one of two buckets: a capital gains event (you disposed of crypto) or an ordinary income event (you earned crypto). Here is how the common ones map.

Comparison of taxable Gemini events like selling, trading, and Earn interest versus non-taxable events like buying, holding, and self-transfers
Taxable vs. non-taxable on Gemini. Selling, trading, spending, and Earn interest trigger tax. Buying, holding, and moving crypto to your own wallet do not.
Gemini actionTaxable?Treatment
Buy crypto with USDNoNot taxable. Sets your cost basis.
Sell crypto for USDYesCapital gain or loss (proceeds − basis).
Trade one coin for anotherYesDisposal of the coin sold; capital gain or loss.
Gemini Earn interest receivedYesOrdinary income at FMV when paid.
Spend / pay with cryptoYesTreated as selling that crypto; capital gain or loss.
Credit Card crypto rewardNo*Generally not income at receipt; low basis means gain when sold.
Send to your own walletNoNot taxable; basis and holding period carry. Network fee is a tiny disposal.

Gemini Earn taxes and the Genesis freeze

Gemini Earn paid interest in crypto, and that interest was ordinary income at its value when you received it. Where it gets complicated: Earn withdrawals were frozen in November 2022 when lending partner Genesis filed for bankruptcy. Many users later received a recovery distribution.

That recovery is its own tax question, separate from the ordinary interest you reported in earlier years. Depending on what you got back versus your original principal and basis, the distribution can involve recovered principal (not income), a capital gain or loss, or a potential loss position. This is genuinely fact-specific and one of the clearest cases where a professional read pays for itself, do not guess on the Earn recovery.

Don't double-count or skip Earn income Interest you actually received before the freeze was taxable income in those years. The later recovery is a different event. Treating the whole thing as one lump is a common, costly error.

Gemini Credit Card taxes

The Gemini Credit Card pays rewards in crypto. Like other card rewards, a rebate on your own spending is generally not taxable income when you receive it. The catch is cost basis: those reward coins arrive with a very low or zero basis, so when you later sell them, almost the entire sale price is a capital gain. Track the value of rewards at receipt so you are not taxed on more than the actual appreciation. Spending crypto through the card is also a disposal of that crypto, a capital gain or loss event.

Short-term vs. long-term rates

For capital-gains events, holding period sets the rate. Hold one year or less and gains are short-term, taxed at your ordinary rate (10% to 37%). Hold more than a year and gains are long-term, taxed at 0%, 15%, or 20%. Earned crypto (Earn interest) is taxed at ordinary rates regardless of holding period, and its value at receipt becomes the cost basis for a later sale. High earners may also owe the extra 3.8% Net Investment Income Tax, and most states tax crypto gains as ordinary income.

Earn interest, card rewards, and trades all in one account?

Gemini mixes income, capital gains, and a messy Earn recovery. We reconcile all of it into clean, CPA-ready figures.

See how it works

How to get your Gemini tax documents

Pulling the right files is step one of an accurate return.

  1. Open Statements and Documents. Log in to Gemini and go to Account, then Statements and Documents.
  2. Download your forms. Grab any Form 1099-MISC and Form 1099-DA issued to you.
  3. Export the full transaction history CSV. Capture every trade, Earn payment, and transfer.
  4. Include ActiveTrader and Credit Card activity. Make sure those trades, rewards, and spending events are in the export.
  5. Reconcile across every wallet. Combine Gemini with all other exchanges and self-custody wallets so transfers, basis, and income are complete before filing.
Pro tip Export the raw transaction CSV, not just the summary. It is the only file that lets you (or your preparer) verify cost basis, set basis on Credit Card rewards, and catch transferred-in lots the 1099-DA treats as zero-basis.

How to report Gemini on your tax return

Once your data is reconciled, Gemini activity lands on a few IRS forms:

  1. Form 8949 lists every disposal (each sale, trade, and crypto spend) with dates, proceeds, cost basis, and gain or loss.
  2. Schedule D totals those gains and losses, split into short-term and long-term.
  3. Schedule 1 carries your Earn interest and other earned income as "Other income."
  4. The Form 1040 digital-asset question must be answered "Yes" if you sold, exchanged, or received crypto.
Worked example: a typical Gemini year
Bought 1 BTC for $30,000 (basis)
$30,000
Sold 1 BTC 13 months later for $42,000
$42,000
→ Long-term capital gain (Form 8949 → Schedule D)
$12,000
Earn interest received during the year
$210
Reported: $12,000 LT gain + $210 income
2 forms

The $12,000 gain is long-term, taxed at favorable rates, while the $210 of Earn interest is ordinary income on Schedule 1. Two buckets, one return.

Common Gemini tax mistakes

These are the errors that quietly cost Gemini users money or invite IRS letters.

  • Mishandling the Earn recovery. Treating the Genesis-bankruptcy distribution as ordinary income (or ignoring it entirely) instead of analyzing recovered principal, gain or loss, and potential loss positions.
  • Forgetting Credit Card reward basis. Reward crypto sold later with no tracked basis gets taxed almost entirely as gain.
  • Accepting a $0 or missing cost basis. For transferred-in assets, the 1099-DA may show proceeds with no basis. Left uncorrected, the IRS treats the entire sale as gain.
  • Trusting the form to be complete. The 1099-DA only covers Gemini. Self-custody, DeFi, and other exchanges are still on you.
  • Ignoring the wallet-by-wallet rule. Under Rev. Proc. 2024-28, basis is tracked per account, so transfers do not carry basis to the next platform's reporting.
Diagram showing how transferring crypto into Gemini loses cost basis so the 1099-DA reports the full sale price as gain instead of the real gain
The cost-basis-gap trap. Crypto transferred in lands with no basis, so the form can report your full sale price as gain. This is the single most expensive Gemini tax mistake.
The basis trap, in plain numbers Say you bought 5 ETH for $10,000 elsewhere, moved them to Gemini, and sold for $16,000. If the 1099-DA shows $16,000 proceeds and no basis, the IRS reads a $16,000 gain instead of $6,000. At a 24% rate that is roughly $2,400 in tax you do not actually owe, until you correct the basis.
Free Crypto Tax Guide The 2025/26 Count On Sheep Crypto Tax Guide cover
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The 2025/26 Crypto Tax Guide. Built by former Big 4 accountants.

A printable, step-by-step guide and checklist to reconcile every coin and wallet, recover missing cost basis, and file accurately before the deadline.

  • Form 8949, Schedule D, and Schedule 1 walkthroughs
  • How to handle staking, DeFi, NFTs, and lost coins
  • The $0-basis 1099-DA trap (and how to avoid it)
  • FBAR, Form 8938, and foreign exchange reporting
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This page is educational and not tax, legal, or investment advice. Count On Sheep is not a CPA firm and does not file tax returns. Tax outcomes depend on your specific situation, consult a qualified professional before filing.