US Crypto & Forex Tax 2026: Section 988, 1099-DA and Capital Gains Rates
US traders face three different tax engines in 2026: property rules for crypto (0/15/20% long-term), Section 988 ordinary income for retail forex, and Section 1256 60/40 treatment for futures. On top of that, 1099-DA broker reporting now hands the IRS your cost basis — making 2026 the year clean records stopped being optional.
The 2026 Quick Numbers
| Asset | Short-term | Long-term (>1 yr) | Key form |
|---|---|---|---|
| Crypto | Income 10-37% | 0/15/20% + 3.8% NIIT | 8949 + Sch D |
| Forex (spot/CFD) | Ordinary income, Section 988 | 1040 | |
| FX futures/options | 1256: 60% LT / 40% ST, mark-to-market | Form 6781 | |
| Stocks/indices | Income | 0/15/20% + NIIT | 8949 + Sch D |
Crypto Rules That Matter in 2026
- Basis and FIFO: default first-in-first-out unless you specifically identify units (Notice 2014-21). Fees are added to basis.
- Disposals: selling, swapping to another coin, or spending all trigger gain/loss at fair market value.
- Income events: mining, staking rewards (Rev. Rul. 2023-14) and airdrops after hard forks are ordinary income at FMV on receipt.
- Losses: net capital losses capped at $3,000/year against income, unlimited carryforward.
- Wash sales: rules apply to securities, not commodities — crypto wash sales remain outside the rule under current law, but plan for change.
- 1099-DA (new): custodial brokers report gross proceeds from 2025 and cost basis from 1 Jan 2026. If your records disagree with the form, be ready to prove why.
Forex: Section 988 vs Section 1256
988 (retail spot FX and most CFDs): gains are ordinary income, and losses are ordinary losses — no $3,000 cap. That is the hidden benefit: losing forex years can offset salary directly.
1256 (regulated FX futures/options): automatic 60% long-term / 40% short-term split plus year-end mark-to-market. Effective rate is below your income rate even on day trades — a major planning difference.
Filing: 15 April 2026 (extension to 15 Oct). Crypto and stocks go on Form 8949 + Schedule D; 1256 contracts on Form 6781; crypto income on Schedule 1.
FAQ
How is crypto taxed in the US in 2026?
As property. Gains held over 1 year are taxed at 0/15/20% plus 3.8% NIIT for high earners; short-term gains are ordinary income. Mining, staking and airdrops are ordinary income when received.
What is Section 988?
The tax rule that makes retail forex gains ordinary income. Its advantage is that losses are not limited by the $3,000 capital loss cap.
What is a 1099-DA and will I get one?
The new digital-asset broker statement. Custodial US exchanges must report gross proceeds from 2025 and cost basis for positions acquired from 1 Jan 2026. Self-custody is not covered — but the IRS cross-checks what it can.
Do crypto wash sale rules apply?
Not yet for crypto under current law, because the rule targets securities. Congress has proposed extending it — treat 2026 as the last likely year of the loophole.
When is the US crypto tax deadline for 2026?
15 April 2026 for the 2025 tax year, with automatic extension to 15 October 2026 if requested.
Estimate Your US Tax in Seconds
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