10 Tax Tools to Help Crypto Owners

Crypto Tax Tools
Tax laws and filing obligations may vary from country-to-country, state-to-state, and even city-to-city, but there are many tools that work worldwide to help you. In preparing to file your taxes, you would first need to have good records of all your crypto dealings to determine the types of taxes you owe and how much. The tax tools below can help you keep records of your crypto transactions, calculate your tax liabilities, minimize taxes owed, and prepare your filing. They are especially useful for those frequently trading many cryptocurrencies on multiple exchanges.

Taxable Transactions and Filing
Once you have all of your crypto records on hand, you can either take them to a tax accountant who can help you file your taxes or use a tax preparation software to do it yourself. For U.S. filers, there are many software products, including the aforementioned Turbotax, to help you file your taxes and claim applicable deductions and credits. Digital asset exchange platform Coinbase described in a nutshell:All crypto sells, conversions, payments, donations, and earned income are reportable by U.S. taxpayers.Not all crypto transactions are taxable, however. Some examples of non-taxable events include donating cryptocurrencies to a qualified tax-exempt charity, buying crypto with cash and holding it, and transferring cryptocurrencies between wallets. A tax preparation software usually takes care of evaluating which transactions are taxable. It usually asks questions about your crypto earnings and transactions, then inputs your answers into relevant tax forms. However, these questions can be vague and some software may not provide enough explanation for you to accurately answer them, potentially resulting in errors on tax forms. In addition, even if your tax filing was accepted, tax authorities could ask you to file amended returns or pay back taxes years later, as did the U.S. Internal Revenue Service (IRS) in its recent letters to crypto owners.

Refunds and Payments in Crypto
If you are due a tax refund, you may be able to receive it in cryptocurrency. Refundo, a provider of tax-related financial products, has been helping U.S. taxpayers receive all or a portion of their federal and state tax refunds in BTC. The platform works with a number of leading tax software such as Turbotax, Taxact, Credit Karma, and H&R Block. Refunds are sent directly to the taxpayer’s wallet. In April, the company partnered with payments provider Bitpay to enable refunds to be sent through Bitpay’s payouts. A growing number of cities and states worldwide are starting to accept cryptocurrencies for tax payments. The Swiss cities of Zug and Chiasso and the U.S. state of Ohio, for example, are already doing so. Ohio accepts both bitcoin and bitcoin cash for payments of 23 types of taxes through Bitpay. The state of New Hampshire has approved a bill to allow tax payments in bitcoin, and the Canadian city of Richmond Hill, Ontario, has announced that its residents will soon have the option to pay their property taxes in the digital currency.Resources: Top Posts on Crypto Tax Filing
- These Tools Will Help You Calculate Your Crypto Taxes
- These Portfolio Tracking Tools Will Also Prepare Your Crypto Taxes
- Short-Term Crypto Tax Filers Increase, But Lots of Investors Still Won’t File
- Ohio Accepts Bitcoin for 23 Types of Taxes
- More Cities and Regions Accepting Coins for Taxes, Services
Images courtesy of Shutterstock.
Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post 10 Tax Tools to Help Crypto Owners appeared first on Bitcoin News.
BTC crypto Digital Currency filing IRS owners Preparation Software Tax Taxes Tools Traders Virtual Currency