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PayPal Offers Free Crypto Tax Filing for Debit Card Users in 2025

PayPal confirms compliance with new IRS rules requiring U.S. crypto users to report digital asset sales, issuing Form 1099-DA starting in 2025.

Summary

PayPal announced it will align with new IRS regulations mandating tax reporting for cryptocurrency sales. Beginning in 2025, U.S. users who dispose of digital assets via PayPal will receive Form 1099-DA, facilitating compliance with federal tax requirements. The company will offer free self-service tax filing tools to its debit card users, aiming to simplify the process for those engaged in digital asset transactions.

Terms & Concepts
  • IRS 1099-DA: A tax form issued in the United States to report digital asset transactions to the Internal Revenue Service (U.S. tax authority).
  • Cryptocurrency Disposal: The act of selling, exchanging, or otherwise transferring cryptocurrency, which may trigger taxable events.