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Left your crypto taxes until the last second? Here\u2019s how to get your crypto taxes done by April 18 with the least amount of friction possible. <\/i><\/strong><\/p>\n The IRS has been really clear that <\/span>cryptocurrency is definitely taxed<\/span><\/a> \u2013 and that they\u2019re able to track crypto investments through various channels. In brief, crypto is subject to Capital Gains Tax and sometimes Income Tax. You\u2019ll pay long-term Capital Gains Tax between 0% to 20% or you\u2019ll pay short-term Capital Gains Tax or Income Tax between 10% to 37%, depending on your Income Tax bracket. <\/span><\/p>\n Let\u2019s just cut to the chase with what you need to do to report your crypto tax by April 18. <\/span><\/p>\n If you\u2019re an active investor using multiple wallets, exchanges and blockchains, getting your complete crypto transaction history together is no quick job. <\/span><\/p>\n To do so manually, you\u2019d have to download CSV files from every exchange, wallet and blockchain you use. Then you\u2019d need to identify your transfers from your taxable transactions, identify which kind of tax you\u2019d need to apply for each taxable transaction and calculate your subsequent capital gains or losses, as well as the fair market value of any crypto income. <\/span><\/p>\n Koinly<\/span><\/a> makes it easy to aggregate your transaction history. Koinly has been supporting crypto investors with a fully IRS-compliant tax reporting system since day 1, so if you\u2019re looking for a solution right now \u2013 it can be as simple as jumping onto Koinly and connecting all your wallets, exchanges and blockchains. Koinly supports more than 650 exchanges, wallets and blockchains \u2013 all you need to do is connect via API or by importing a CSV file of your transaction history. Let\u2019s take a look at how.<\/span><\/p>\n Among Koinly\u2019s supported exchanges are Binance, Coinbase, FTX, Kraken, and KuCoin. To automatically get your transaction data, you can use the API. Just head into your exchange and create a read-only API key \u2013 you\u2019ll normally find this under API management or settings. <\/span><\/p>\n Once you\u2019ve created your key, copy your API key and API secret and head over to Koinly. Select the exchange you want to add, then the set up auto-sync option and enter your API details and your transaction data with that exchange will be automatically imported into Koinly.<\/span><\/p>\n If you need assistance connecting Koinly to a specific exchange, wallet or blockchain \u2013 don\u2019t panic, Koinly have done the digging for you. Koinly integration pages feature step by step guides on how to get connected with Koinly. <\/span><\/p>\n Convert crypto values into US Dollars<\/b><\/p>\n Once you\u2019ve got all your exchanges, wallets and blockchains connected with Koinly, it does the complex work of converting all your crypto into fiat currency terms. It saves you hours of searching through historical crypto price data on price aggregator websites.<\/span><\/p>\n Koinly determines the market price of your transaction through a number of different methods. First, it\u2019ll try to determine the market price using data available from your transaction history. For example, if you bought ETH<\/a> using USD on a given day, Koinly will set this as the market price. <\/span><\/p>\n If you bought crypto using a different fiat currency to your base currency in Koinly, Koinly will use Forex rates for the day of your transaction to identify the market price.<\/span><\/p>\n Finally, for transactions that don\u2019t involve any fiat currency \u2013 like income or crypto to crypto trades \u2013 Koinly uses market price aggregators like CoinMarketCap or CoinGecko to identify the market price for your crypto. Koinly may also fetch market rates directly from certain exchanges if you\u2019ve used API.<\/span><\/p>\n After Koinly has converted everything to dollars, it can now calculate crypto taxes.<\/span><\/p>\n Calculate Capital Gains and Income from crypto<\/b><\/p>\n Koinly can help by identifying your taxable transactions from your non-taxable transactions, calculating your capital gains and losses, as well as any crypto income for you.<\/span><\/p>\n For capital gains \u2013 Koinly will identify each time you\u2019ve sold, traded or spent crypto and calculate your subsequent capital gain or loss for you. It even separates out your short-term capital gains from your long-term capital gains, so you can rest easy knowing you\u2019re not paying too much tax.<\/span><\/p>\n For mining, staking, and interest income \u2013 Koinly identifies the fair market value of any crypto income in USD on the day you received it. This is separated out in your crypto tax report, and even broken down into the different types of income if you need to report each separately. <\/span><\/p>\n When tax season rolls around, DeFi is a particular challenge for investors, but not with Koinly. Koinly supports a wide range of popular web wallets used to interact with DeFi protocols \u2013 so whether you\u2019re providing liquidity on Uniswap or staking CAKE on PancakeSwap \u2013 Koinly can handle it all. Koinly is evolving just as quickly as the DeFi market, so we\u2019re always adding support for new tokens and protocols. <\/span><\/p>\n Now that your crypto taxes have been calculated, there\u2019s just one step left\u2026 creating an IRS-compliant report.<\/span><\/p>\n File your crypto taxes<\/b><\/p>\n Koinly has the <\/span>report<\/span><\/a> you need, no matter how you choose to file. <\/span><\/p>\n Filing yourself<\/b><\/p>\n Though it\u2019s probably too late to file with paper forms unless you have an extension \u2013 we\u2019ll cover it anyway. <\/span><\/p>\n You\u2019ll need to report each disposal of crypto (any time you sold, traded or spent crypto) on IRS Form 8949, as well as your net capital gain and loss on Schedule D. Koinly provides this exact form, pre-filled with your transactions.<\/span><\/p>\n You\u2019ll also need to report your crypto income on Schedule 1, generally under the \u2018other income\u2019 section \u2013 although if you\u2019re self-employed this would go on Schedule C instead. Koinly can help with this too, download either the Complete Tax Report or Income Tax Report which will include all your crypto income totals in USD, ready to add to your forms. <\/span><\/p>\n After completing your additional forms, fill out your Form 1040 and attach your Schedule D, Form 8949 and Schedule 1 (or C) and you\u2019re done!<\/span><\/p>\n Filing with an accountant<\/b><\/p>\n Do you have an accountant on hand? Koinly makes their job much easier!<\/span><\/p>\n It is possible to grant access to Koinly to your accountant. Just log into your Koinly account, go to settings, then team and invite your accountant, CPA or tax agent. They can then view your Koinly account and do your crypto taxes for you.<\/span><\/p>\n Filing with a tax app<\/b><\/p>\n Are you filing with a tax app like TurboTax or TaxAct? Koinly can also generate reports for these apps.<\/span><\/p>\n For TurboTax, just download the TurboTax Online or Desktop Report from Koinly (depending on the version of TurboTax you\u2019re using) and then upload this to TurboTax when you\u2019re filing your investments and savings. If you\u2019ve got income, add the total income figure from your Koinly Complete Tax Report (or Income Tax Report) as miscellaneous income. <\/span><\/p>\n For TaxAct, you\u2019ll download your Form 8949 and Schedule D from Koinly (as well as your Complete Tax Report or Income Tax Report if you have any crypto income). You can upload this to TaxAct when filing your capital gains, and you can report any crypto income as other income in TaxAct.<\/span><\/p>\n If you\u2019re racing to get your taxes done, <\/b>sign up to Koinly<\/b><\/a> today! <\/b><\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n This is a sponsored post. Learn how to reach our audience here<\/a>. Read disclaimer below.<\/em><\/small><\/p>\n\n
Aggregate your transactions with Koinly <\/b><\/h3>\n
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