How to Reconcile Your 1099-DA with Awaken
Starting in 2026 (for the 2025 tax year), the IRS requires centralized exchanges (CEXs) to issue Form 1099-DA. While this adds a layer of reporting, Awaken makes it easy to reconcile these forms with your on-chain activity to ensure you don't overpay and stay audit-ready.
Step 1: Connect All Data Sources
Before you can reconcile, Awaken needs the full picture of your crypto life dating back to your very first trade.
Centralized Exchanges (CEXs): Connect all your exchange accounts (e.g., Coinbase, Kraken, Binance.us) via API or CSV.
On-chain Activity: Add all your self-custody wallets (e.g., MetaMask, Ledger, Phantom) and any other on-chain interactions like DeFi or NFTs.
Step 2: Categorize Your Transactions
Navigate to the Transactions tab. Here, you must go through the reconciliation flow to ensure every move is accounted for.
Review: Check for any "Uncategorized" or "Missing Price" warnings.
Label: Ensure transfers between your own wallets are correctly identified as "Transfers" and not "Sales" to avoid unnecessary tax hits.
Confirm: Once you are happy with how your transactions are categorized, you are ready for the next step.
Step 3: Navigate to the Tax Page
Click on the Taxes page using the navigation menu on the left hand side.
Give the page a high-level overview.
Check your total gains, losses, and income to see if the numbers align with your expectations.
Step 4: The USA 1099-DA Flow
Scroll down to the USA Banner featuring the new tax flow and hit Continue.
Upload your 1099-DAs: You will need to upload every 1099-DA statement you received. For example, if you traded on 4 different US exchanges, you should expect 4 consolidated 1099-DA statements.
Review: Once uploaded, review the data for each exchange to ensure it matches what was reported to you. If it looks correct, hit Continue.
Step 5: Reconcile Proceeds
This is the most critical step. In the Reconcile stage, you will compare your Awaken Proceeds with your 1099-DA Proceeds.
Pro Tip: Which numbers should I use?
Use Awaken Numbers: If your Awaken calculated proceeds are equal to or higher than your 1099-DA proceeds.
Use 1099-DA Numbers: If the 1099-DA proceeds are higher than Awaken’s.
Why? The IRS prioritizes "Proceeds" totals. If your reported proceeds match or exceed what the IRS has on file from your 1099-DA, it significantly reduces the chance of red flags or automated notices.
Once you've made your selection, review the final summary and hit Continue.
Step 6: Download Your Reports
You’re at the finish line! You can now download the specific files you need for filing:
TurboTax File: A direct-upload file for seamless integration with TurboTax.
Schedule D & Form 8949: The standard IRS forms for capital gains and losses, ready for your own filing or to be sent directly to your CPA.