Cryptocurrency Tax Calculator 2022-2023 (2024)

FAQs

How do I calculate my crypto taxes? ›

To calculate your gain or loss: Determine your cost basis, which includes the purchase price and any associated fees. If the crypto was a gift, use its fair market value in USD on the day you received it. Subtract the cost basis from the sale price to find your gain or loss.

Crypto.com Tax is entirely free for anyone who needs to prepare their crypto taxes. No matter how many transactions you have in the past years, we'll handle the calculation for you at no cost.

What affects your crypto taxes? For US taxpayers, the key factor affecting tax on crypto gains is whether a profit was realized in the short or long term. Long-term tax rates on profits from tokens held for a year or longer peak at 20%, whereas short-term capital gains are taxed at the same rate as income: 10-37%.

Profits on the sale of assets held for less than one year are taxable at your usual tax rate. For the 2024 tax year, that's between 0% and 37%, depending on your income. If the same trade took place a year or more after the crypto purchase, you'd owe long-term capital gains taxes.

The total Capital Gains Tax you owe from trading crypto depends on how much you earn overall every year (i.e. your salary, or total self-employed income plus any other earnings). This number determines how much of your crypto profit is taxed at 10% or 20%. Our capital gains tax rates guide explains this in more detail.

There is no way to legally avoid taxes when cashing out cryptocurrency. However, strategies like tax-loss harvesting can help you reduce your tax bill legally.

Can crypto be tax-free? If you are residing and making money off crypto in the United States, there is no legal way to avoid paying taxes on crypto. Other countries, however, have different laws, and there are several countries that offer zero capital gains or Income tax.

Yes, you can write off crypto losses on taxes even if you have no gains. If your total capital losses exceed your total capital gains, US taxpayers can deduct the difference as a loss on your tax return, up to $3,000 per year ($1,500 if married filing separately).

What happens if I don't report crypto on taxes? ›

US taxpayers must report any profits or losses from trading cryptocurrency and any income earned from activities like mining or staking on tax return forms, such as Form 1040 or 8949. Not reporting can result in fines and penalties as high as $100,000 or more severe consequences, including up to five years in prison.

Yes, Bitcoin and other cryptocurrencies can be traced. Transactions are recorded on a public ledger, making them accessible to anyone, including government agencies. Centralized exchanges provide customer data, such as wallet addresses and personal information, to the IRS.

Do you need to report taxes on Bitcoin you don't sell? If you buy Bitcoin, there's nothing to report until you sell. If you earned crypto through staking, a hard fork, an airdrop or via any method other than buying it, you'll likely need to report it, even if you haven't sold it.

Texas. Texas is considered one of the most crypto-friendly states in the country. In 2021, the Texas Department of Bank allowed state-chartered banks to offer cryptocurrency custody services. In addition to cheap electricity for miners, Texas has enacted friendly policies for miners.

In the US, crypto tax rates vary based on your income and how long you hold the assets. Short-term gains are taxed at ordinary income rates ranging from 10% to 37%, while long-term gains are taxed at preferential rates ranging from 0% to 20%, depending on income. Income from crypto is taxed at regular income tax rates.

TurboTax Investor Center is a new, best-in-class crypto tax software solution. It provides year-round free crypto tax forms, as well as crypto tax and portfolio insights that help you understand how your crypto transactions impact your taxes.