PayPal: Starting from the 2025 tax year, digital asset disposal gains must be reported to the U.S. IRS

Foresight News reported that PayPal has officially announced it will provide free self-service tax filing for its debit card users, including free 2025 federal and state tax filing services for U.S. PayPal Debit Mastercard users. According to information on PayPal's official website, users are required to report taxes on cryptocurrencies held on its platform. Starting from the 2025 tax year, the U.S. Internal Revenue Service will require U.S. digital asset brokers such as PayPal to report gains from digital asset dispositions on Form 1099-DA. If users dispose of cryptocurrencies in their PayPal wallet, such as selling or exchanging them, during the applicable tax year, PayPal will send users the IRS 1099-DA tax form by February 15.