Miles Brooks holds his Master's of Tax, is a Certified Public Accountant, and is the Director of Tax Strategy at CoinLedger.
Reviewed by:
Jordan Bass
Reviewed by:
Jordan Bass
Head of Tax Strategy
Jordan Bass is the Head of Tax Strategy at CoinLedger, a certified public accountant, and a tax attorney specializing in digital assets.
Our Editorial Standards:
Our content is designed to educate the 500,000+ crypto investors who use the CoinLedger platform. Though our articles are for informational purposes only, they are written in accordance with the latest guidelines from tax agencies around the world and reviewed by certified tax professionals before publication. Learn More
on this page
Key takeaways
To report your crypto taxes, keep records of all of your cryptocurrency transactions from the year â from all of your wallets and exchanges.Â
Capital gains from cryptocurrency should be reported on Form 8949.Â
Earned cryptocurrency is often reported on Schedule 1.Â
If youâre looking for an easy way to generate crypto tax reports, crypto tax software can help.Â
Frequently asked questions
How do I report crypto on my taxes?
Any cryptocurrency capital gains, capital losses, and taxable income need to be reported on your tax return. You can report your capital gains and losses on Form 8949 and your income on Form 1040 Schedule 1, Schedule B or Schedule C depending on your situation.
How does the IRS know if you have cryptocurrency?
The IRS can track transactions through 1099 forms issued by major exchanges. In addition, the IRS has worked with contractors like Chainalysis to match âanonymousâ wallets to known investors.
How much cryptocurrency do you have to report on your tax return?
You are required to report all of your taxable income from cryptocurrency on your tax return, regardless of the amount.
Do I pay taxes on crypto if I lose money?
Reporting capital losses comes with a tax benefit. Capital losses can offset capital gains and up to $3,000 of personal income.
What happens if you donât report cryptocurrency on your taxes?
Intentionally not reporting cryptocurrency on your taxes is considered tax evasion. The maximum penalty for tax evasion is a $100,000 fine and 5 years imprisonment.
CoinLedger has strict sourcing guidelines for our content. Our content is based on direct interviews with tax experts, guidance from tax agencies, and articles from reputable news outlets.
KNOWLEDGE BASE
Demystify Crypto Taxes
The Ultimate Crypto Tax Guide (2024)
This guide breaks down everything you need to know about cryptocurrency taxes, from the high level tax implications to the actual crypto tax forms you need to fill out.