PayPal has officially announced that it will provide free self-service tax filing for its debit card users, including free 2025 federal and state tax return filing services for US PayPal Debit Mastercard users. According to PayPal's official website, users' cryptocurrency holdings on its platform are subject to taxation. Starting with the 2025 tax year, the IRS requires US digital asset brokers such as PayPal to report gains from the disposal of digital assets on Form 1099-DA. If users have disposed of their PayPal wallets, such as by selling or exchanging cryptocurrency, during the applicable tax year, PayPal will send them a 1099-DA tax form to the IRS by February 15th.