Are you a Gemini user looking to file your crypto taxes?
It doesn’t matter what exchange you are using — navigating the tax code can feel overwhelming. We put together this article to help you better understand how you can report your transactions on Gemini to the IRS.
In this article, we’ll share what you need to know about the fundamentals of crypto taxes and break down a simple step-by-step process to file taxes on your Gemini transactions.
Gemini is a US-based cryptocurrency exchange and wallet provider that allows customers to buy and sell cryptocurrency and earn crypto interest.
Gemini was founded by Tyler and Cameron Winklevoss in 2013. The company is licensed and regulated by the New York State Department of Financial Services. Gemini is well-known for its focus on security, even going as far as providing insurance in case of a hack, theft, or security breach.
The IRS considers cryptocurrency a form of property, which means that it is subject to both capital gains tax and income tax.
Capital gains events: You incur capital gains or losses every time you dispose of your cryptocurrency. This includes trading your cryptocurrency for other cryptocurrencies or selling it for fiat.
Income tax events: If you earn cryptocurrency as a form of income, this is considered personal income and will be taxed accordingly. Earning interest on Gemini would fall into this category.
Gemini sends 1099-K forms to customers who meet the following two conditions:
These 1099-K forms are meant to track payments received from a third-party network. It is not the same as a 1099-B form, which is meant to help taxpayers report miscellaneous income.
Yes. When customers meet the two conditions listed above, Gemini will file an identical copy of their 1099-K form with the IRS.
It’s important to remember that this 1099-K form is not enough to file a complete tax return. This form does not show total gains and losses, which is needed to accurately report capital gains.
Many cryptocurrency investors use multiple exchanges, wallets, and platforms. This makes it difficult for third-party exchanges to give full capital gains and losses breakdowns. After all, Gemini only has visibility into transactions that take place on the Gemini platform.
To get a complete record of your entire cryptocurrency transaction history, we recommend using CryptoTrader.Tax. The platform can integrate with Gemini and any other platform you are using to help you calculate your gains and losses and file your tax return in minutes.
Here’s how you can include all of your Gemini transactions on your tax return on CryptoTrader.Tax within minutes.
1. Within CryptoTrader.Tax, click the “Add Account” button on the top left.
2. Find Gemini in the list of supported exchanges.
3. Click the blue button labeled “Sync Transactions”.
4. At this point, you’ll be asked to enter a 2-factor authorization code.
5. Once you’ve entered the code, click the “Allow” button to finish the process.
6. Now, all of your Gemini transactions will automatically be recorded in your CryptoTrader.Tax account. When you choose to file your tax report, your Gemini history will be included.
Want to get started managing your taxes on Gemini 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 given is accurate.