Discover what to do on tax day!
18 Apr, 2023 · 3 min read
Tax day is on April 18th this year, with US taxpayers having to pay their crypto taxes that day. Do you know what to do to report your crypto taxes? In this article, we’ll give you a refresher on how to report your crypto taxes and what you need to do on tax day this year.
What does tax day mean in USA?
Tax day in the US is when individual taxpayers should file and pay their taxes. In 2023, tax day falls on April 18th. On Tuesday, you have to file your taxes in general, including your crypto activities.
What is the deadline for paying US taxes?
In 2023, the deadline to file and pay your crypto taxes, and individual federal taxes in general, is April 18th. Learn the key dates of the crypto tax season.
Can you file taxes late in USA?
Yes, if you’re not ready to file your crypto taxes on tax day (April 18th), you can file for an extension, which will delay the filing obligation for six months.
What to do on tax day?
You can file your Individual Us Income Tax return to the IRS since late January, with the final date being April 18th. On that day, you must file and pay your US taxes or ask for a 6-months extension.
What do I need to report regarding crypto on tax day?
There are several obligations regarding reporting crypto taxes, including:
- Answering the crypto question on Form 1040;
- Reporting all of your gains/losses from crypto trading activities during the tax year (including crypto-to-crypto trades, crypto-to-NFT trades, and NFT trades);
- Reporting all the income you had from crypto activities, such as airdrops, hard forks, salaries paid in crypto, crypto interest, crypto staking rewards, and others.
How to report crypto taxes?
If you had gains/losses from crypto trading, you’d have to report them on Schedule C of your Form 8949 and Schedule D of your Form 1040.
If you had any crypto income from activities like the ones listed above, you’d need to include them in your US Individual Income Tax return.
Besides those obligations, taxpayers also have to answer the crypto question on Form 1040.
Tips for reporting your crypto taxes
The best tips to have a smooth tax season is to accurately and frequently track your crypto activities (monthly) and work with top crypto tax software or crypto tax professionals.
With a leading crypto tax software, you can import your trades, discover your gains/losses, and generate the necessary tax reports.
If you are a professional trader or have thousands of transactions, you may benefit from working with a crypto tax professional (check our Full-Service).
The best crypto tax software: CoinTracking
The best crypto tax software in the market is CoinTracking.
You can import your trades using CSV or API, track your gains/losses, and generate tax reports according to your preferred accounting method.
CoinTracking is your full crypto tax solution for:
- Importing (API & CSV) your trades from 110+ exchanges.
- DeFi and NFT support with our ETH+DEX importer.
- Importing your Binance Chain, Binance Smart Chain, and MATIC transactions.
- 25+ advanced reports, including which coins offer you a tax-free rate.
- Automatic capital Gains, according to 12 accounting methods (e.g., FIFO, LIFO, HMRC, ACB), accepted worldwide.
- Generating complete Tax Reports in your country.
Moreover, CoinTracking can easily classify all your earnings from yield farming, liquidity pools, crypto staking, and much more.
Crypto taxes with no errors: CoinTracking Full Service in the US
CoinTracking also offers a Full Service for US traders. A crypto reconciliation tax expert from Polygon Advisory Group, a leading US crypto tax firm, will review your CoinTracking account, help fix any errors, and ensure you submit your crypto tax reports error-free.
Disclaimer: All the information provided above is for informational purposes only and should not be considered as professional investment, legal, or tax advice. You should conduct your own research or consult with a professional financial advisor when investing.