What is the IRS Form 8949?
Published on May 30, 2025
by Jeff Patterson
Reviewed by
Jeff Patterson is an American living in Scotland and joined the team at Expat Tax Online after experiencing the complexities of living abroad with a family.
Table of Contents
How do I report stock and crypto sales on Form 8949?
If you’re a US expat and you sold stocks, mutual funds, or cryptocurrency, you’ll need to report each transaction using Form 8949.
This form lists the details of your sales—including dates, prices, and gains or losses—and helps calculate your capital gains taxes on Schedule D.
When do I need to use Form 8949?
Officially, Form 8949’s full title is Sales and Other Dispositions of Capital Assets. IRS Form 8949 is used to report capital gains and losses from investments for tax filing.
You’ll need to use Form 8949 anytime you sell investments like stocks, cryptocurrency, or property, and that sale results in a gain or loss. These sales are considered taxable events, even if you didn’t transfer the money to a US bank.
Most US expats receive Form 1099-B from their broker if they sold stocks or mutual funds. This form gives you a summary of your investment sales, including what you sold, when you bought it, and how much you earned or lost.
Form 8949 helps you report each sale or trade of an investment in detail. This includes:
- Stocks
- Mutual funds
- Crypto (like Bitcoin or Ethereum)
- Other capital assets
Each transaction is reported with key details like the purchase date, selling date, sales price, and cost or other basis. You also indicate whether the asset was held short-term (1 year or less) or long-term (more than 1 year), because they are taxed differently.
After you complete Form 8949, the totals are transferred to Schedule D, which summarizes all your gains and losses for the year.
Additionally, if you use a foreign brokerage or sell crypto through an exchange that doesn’t issue Form 1099-B, you’re still responsible for tracking and reporting those sales. In those cases, you’ll need to know the original price you paid (cost basis) and the price you sold it for (sales price), along with the dates of each transaction.
Who is required to file Form 8949?
It doesn’t matter where you live or where the transaction took place. As long as you’re a United States taxpayer, you need to file Form 8949 if:
- You sold stocks or ETFs through a US or foreign brokerage.
- You made trades involving Bitcoin, Ethereum, or any other digital assets.
- You received a Form 1099-B from a US broker showing capital gains or losses.
- You sold property or investments that created a taxable event, even if there was no 1099 form involved.
- You had short-term or long-term capital gains or losses.
Some exceptions apply if all your investment sales are reported directly on Schedule D and there are no adjustments—but this is rare, especially for expats dealing with foreign accounts, cryptocurrency, or unreported cost basis.
How do I fill out Form 8949?
First, you’ll need Form 1099-B from your broker to complete. You will report the totals of Form 8949 on Schedule D of Form 1040.
Here is a summary of how to fill out tax Form 8949:
- List what you sold – For example, “15 shares of Apple stock” or “0.5 ETH.”
- Enter the purchase and sale dates – The IRS wants to know how long you held the asset.
- Fill in the sale amount – This is how much you received from the sale.
- Enter your cost basis – This is what you originally paid for the investment, including fees.
- Calculate your gain or loss – Subtract the purchase price from the sale price.
- Note any adjustments-– For example, if a wash sale applies or if there’s no Form 1099-B.
Each transaction goes in a specific section based on whether it was reported on Form 1099-B and whether the basis was reported to the IRS. You’ll mark Box A, B, or C to indicate this.
Avoid the hassle. Talk to our team if you hold stock, shares, or crypto that may need to be reported.
How do I report capital gains and losses on Form 8949?
After entering all your sales, you’ll total up your:
- Short-term capital gains and losses (assets held for 1 year or less)
- Long-term capital gains and losses (held for more than 1 year)
These totals then move over to Schedule D on your tax return, which figures out whether you owe tax or can claim a deduction. If your losses are greater than your gains, you might be able to reduce your taxable income using tax-loss harvesting—up to US$3,000 per year.
For US expats using international platforms or exchanges, you might not receive Form 1099-B or other US documents. In that case, it’s very important to keep good records: dates of purchase and sale, prices in US dollars at the time, and what asset was traded.
What are adjustment codes on Form 8949 and when are they used?
When filling out Form 8949, you might see certain letter codes—these are called adjustment codes. They explain why the amount you’re reporting is different from what the IRS might expect.
Here are a few common ones:
- Code W – This is used for wash sales, which happen when you sell a stock at a loss and then buy the same stock back within 30 days. That loss can’t be deducted right away, so it has to be adjusted.
- Code B – Used when your broker didn’t report the cost basis (what you originally paid for the investment) to the IRS.
- Code T – Applies to special items like collectibles that may be taxed differently.
These codes go in column (f) of the form, and any adjustment amounts are listed in column (g).
If you’re a US expat using a foreign brokerage that doesn’t send Form 1099-B, it’s especially important to check your records and understand which codes might apply. A tax professional can help if you’re unsure of what to do.
How do I report cryptocurrency transactions on Form 8949?
Trading or selling Bitcoin, Ethereum, or any other digital assets are considered taxable events. The IRS requires you to report each transaction using Form 8949, just like stocks.
Here’s what to include for each crypto transaction:
- What you sold – List the type and amount of crypto (e.g., 0.5 BTC).
- When you bought and sold it – Include both the purchase and sale dates.
- What you earned from the sale – The amount you received in US dollars.
- What you paid for it (cost basis) – This includes the price of the crypto when you bought it and any transaction fees.
- Gain or loss – The difference between what you earned and what you originally paid.
Be sure to report crypto in US dollars using the fair market value at the time of each trade. Some platforms issue a Form 1099-B, but many don’t—especially if you’re using international exchanges. That’s why keeping your own records is important for accurate cryptocurrency tax reporting.
Can I file Form 8949 electronically?
Yes, you can e-file Form 8949 as part of your regular US tax return (Form 1040).
If you’re working with a paid preparer, make sure they include all your brokerage or crypto exchange data and that they can e-file it properly. Many financial institutions also send this data directly to the IRS, but it’s your job to check that all transactions are included and reported correctly.
What are common mistakes or problems with Form 8949?
Here are a few errors US expats often run into when filling out Form 8949:
- Wrong cost basis – Misreporting what you paid for an investment can cause your gain or loss to be wrong.
- Missing transactions – If you forget to include a sale—especially from a foreign brokerage or crypto exchange—you could underreport your income.
- Mismatch with Form 1099-B – The IRS gets a copy of what your broker sends, so the numbers should match what you report.
- Not using adjustment codes – If you have a wash sale or other special situation and forget to apply the correct code (like Code W), it can cause problems.
- Forgetting Schedule D – Totals from Form 8949 need to flow into Schedule D, which is what calculates your overall capital gains or losses.
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