PayPal launches a free self-service tax filing service, starting in 2025, digital asset disposal gains must be reported to the IRS

PayPal announced a partnership with the embedded tax technology platform april, allowing U.S. PayPal debit Mastercard users to use april's self-service tax filing for free to file their federal and state taxes for the year 2025.

According to information from PayPal's official website, users need to report taxes on their cryptocurrency on the platform. Starting from the 2025 tax year, the Internal Revenue Service requires U.S. digital asset brokers like PayPal to report gains from digital asset disposals on Form 1099-DA. If users have disposed of their PayPal wallet by selling or exchanging cryptocurrency during the applicable tax year, PayPal will send users the IRS tax Form 1099-DA by February 15.