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How to Do Your BlockFi Taxes

CryptoTrader.Tax imports BlockFi data for easy tax reporting. Create the appropriate tax forms to submit to your tax authority.

BlockFi Tax Reporting

You can generate your gains, losses, and income tax reports from your BlockFi investing activity by connecting your account with CryptoTrader.Tax. Connect your account by importing your data through the method discussed below.

  • BlockFi exports a complete Transaction History file to all users. Simply navigate to your BlockFi account and download your transaction history from the platform.
  • Import your transaction history directly into CryptoTrader.Tax. Import the file as is. No manual work is required!
  • CryptoTrader.Tax automatically generates your gains, losses, and income tax reports based on this data.

File these crypto tax forms yourself, send them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct.

BlockFi Tax Reporting

You can generate your gains, losses, and income tax reports from your BlockFi investing activity by connecting your account with CryptoTrader.Tax. Connect your account by importing your data through the method discussed below.

  • BlockFi supports importing data via read-only API. This allows automatic import capability so no manual work is required.
  • Connect CryptoTrader.Tax to your BlockFi account with the read-only API.
  • Let CryptoTrader.Tax import your data and automatically generate your gains, losses, and income tax reports.

File these crypto tax forms yourself, send them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct.

BlockFi Tax Reporting

You can generate your gains, losses, and income tax reports from your BlockFi investing activity by connecting your account with CryptoTrader.Tax. There are a couple different ways to connect your account and import your data:

  • Automatically sync your BlockFi account with CryptoTrader.Tax via read-only API. This allows your transactions to be imported with the click of a button.
  • Upload your BlockFi Transaction History CSV file to CryptoTrader.Tax. You can download your Transaction History CSV directly from BlockFi and import it into CryptoTrader.Tax

Both methods will enable you to import your transaction history and generate your necessary crypto tax forms in minutes. File these forms yourself, send them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct.

BlockFi Tax Reporting

You can generate your gains, losses, and income tax reports from your BlockFi investing activity by connecting your account with CryptoTrader.Tax. There are a couple different ways to connect your account and import your data:

  • Automatically sync your BlockFi account with CryptoTrader.Tax by entering your public wallet address. This allows your transactions to be read in directly from the blockchain.
  • Upload a BlockFi Transaction History CSV file to CryptoTrader.Tax

Both methods will enable you to import your transaction history and generate your necessary crypto tax forms in minutes. File these forms yourself, send them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct.

BlockFi Tax Reporting

You can generate your gains, losses, and income tax reports from your BlockFi investing activity by connecting your account with CryptoTrader.Tax. Connect your account by importing your data through the method discussed below:

  • Navigate to your BlockFi account and find the option for downloading your complete transaction history.
  • Import your transaction history directly into CryptoTrader.Tax by mapping the data into the preferred CSV file format.
  • CryptoTrader.Tax automatically generates your gains, losses, and income tax reports based on this data.

File these crypto tax forms yourself, send them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct.

How Cryptocurrency Taxes Work

Cryptocurrencies like bitcoin are treated as property by many governments around the world—including the U.S. Other forms of property that you may be familiar with include stocks, bonds, and real-estate.

Just like these other forms of property, cryptocurrencies are subject to capital gains and losses rules, and you need to report your gains, losses, and income generated from your crypto investments on your taxes.

For a complete and in-depth overview, please refer to our Complete Guide to Cryptocurrency Taxes.

How To Do Your Crypto Taxes

To do your cryptocurrency taxes, you need to calculate your gains, losses, and income from your cryptocurrency investments in your home fiat currency (e.g. US Dollar, Australian Dollar, etc.).

Once you have your calculations, you can fill out the necessary tax forms required by your country. If you are in the United States, you can learn which forms you need to fill out with our blog post: How to Report Cryptocurrency On Your Taxes.

Why Can't BlockFi Generate My Tax Forms?

Many cryptocurrency investors use additional exchanges, wallets, and platforms outside of BlockFi. Perhaps you also trade on Coinbase or earn interest from BlockFi. The trouble with BlockFi's reporting is that it only extends as far as the BlockFi platform. If you use additional cryptocurrency wallets, exchanges, DeFi protocols, or other platforms outside of BlockFi, BlockFi can't provide complete gains, losses, and income tax information.

How Does Cryptocurrency Tax Software Help?

By integrating with all of your cryptocurrency platforms and consolidating your crypto data, CryptoTrader.Tax is able to track your profits, losses, and income and generate accurate tax reports in a matter of minutes.

You can test out the software and generate a preview of your gains and losses completely for free by creating an account.

Learn more about how CryptoTrader.Tax works here.

How to Do Your BlockFi Taxes

Are you a BlockFi user trying to file your crypto taxes

Let’s break down how the IRS taxes BlockFi transactions and interest payments and share a step-by-step guide to filing your crypto tax return. 

What is BlockFi? 

BlockFi is a US-based cryptocurrency wallet and exchange. It offers crypto investors low transaction fees and interest on assets like Ethereum, Bitcoin, and various stablecoins. 

BlockFi was founded in 2017. The company has received funding from investors such as Coinbase Ventures, Pomp Investments, and Bain Capital Management. 

Despite offering support for a limited number of cryptocurrencies, BlockFi is currently used by more than 225,000 crypto investors. 

What taxes do you need to pay on BlockFi? 

The IRS considers cryptocurrency a form of property that is subject to both capital gains and income tax. 

Capital gains events: You incur capital gains or losses every time you dispose of your cryptocurrency. This may include selling your cryptocurrency or trading it for other cryptocurrencies. 

Income tax events: If you earn cryptocurrency as a form of income, this is considered personal income and will be taxed accordingly. 

Do I have to pay taxes on BlockFi interest? 

Yes. The interest that you earn on BlockFi is considered ordinary income and will be taxed based on your personal income tax bracket. 

US Income tax brackets

Does BlockFi report to the IRS?

Yes. Exchanges like BlockFi send your 1099 information to the IRS. Not reporting your BlockFi taxes can result in a fine and/or potential jail time. 

Does BlockFi send tax forms? 

BlockFi does send tax forms to its users. If you’ve earned more than $600 worth of interest and bonuses on BlockFi, the platform will provide you with a 1099-MISC form. 

However, the platform does not have a complete view of most users’ cryptocurrency buying and selling history and cannot provide you with the full information that you’ll need to file your tax return. 

Here’s an example that shows why it’s difficult for BlockFi to help users accurately report all of their crypto taxes. 

BlockFi tracking cost basis

In this scenario, BlockFi doesn’t know what David’s cost basis was for acquiring Bitcoin. Since the transaction took place on a different exchange, BlockFi doesn’t know if he acquired his tokens for $1,000, $5,000, or $10,000. 

That means if David ends up selling his Bitcoin, BlockFi can have trouble accurately reporting this capital gain. 

To accurately report your crypto taxes, you’ll need to record all of your transactions across multiple wallets and exchanges. While it can be difficult to track all of this information on a spreadsheet, CryptoTrader.Tax makes the process easy. With just a few clicks, you’ll be able to import your transactions from BlockFi and other exchanges. 

How to report your BlockFi taxes 

Here’s how you can upload a full record of your BlockFi taxes into the CryptoTrader.Tax platform for automatic tax reporting. 

1. Log in to your BlockFi account. 

2. Click on the Reports option under the user profile dropdown menu.

Blockfi tax reporting

3. Scroll to the very bottom of the page and click on the .csv download option to get your full transaction history downloaded to a csv file.

4. Navigate to the BlockFi tab on CryptoTrader.Tax and drag the file you just downloaded into the blue box.

BlockFi and CryptoTrader.Tax

And that’s it! You’ll then be able to create a crypto tax report that includes all of your BlockFi transactions. 

Manage your BlockFi taxes today 

Want to get started managing your taxes on BlockFi and other exchanges? Try out CryptoTrader.Tax, the crypto tax reporting software used by more than 100,000 investors. Get started with a free preview report - there’s no need to enter your credit card information until you’re 100% sure the information we’re giving is accurate.

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