Disclaimer: Coinbase will not be licensed to present tax recommendation and this weblog shouldn't be seen as such. For questions referring to your particular scenario we strongly suggest talking with a tax skilled.
In case you’re a US taxpayer who bought, used, or transformed crypto in 2018, it's possible you'll owe taxes on these transactions. We’ve heard confusion from each our prospects and the broader crypto neighborhood on taxes stemming from crypto transactions. As we speak, Coinbase is asserting quite a lot of steps we’ve taken to streamline prospects’ expertise this tax season.
1. Higher training and sources
We all know that Coinbase prospects (and the broader crypto neighborhood) have loads questions on whether or not they qualify for a 1099-Ok, why they won't qualify, and customarily whether or not or not they owe taxes. So, we’ve developed two essential sources:
- Crypto and Bitcoin Taxes in the US, 2018 Edition: It is a basic training information on crypto and taxes for the previous 12 months. Go to this web page if you wish to know extra about your potential tax obligations.
- Tax Resource Center: That is our new and improved Coinbase Help providing for tax season. Go to this web page if you wish to know extra about what data Coinbase is offering you this tax season.
2. TurboTax low cost for Coinbase prospects
TurboTax has created a brand new crypto tax part in its TurboTax Premier product permitting you to add your transactions and account for positive aspects and losses. Coinbase prospects can now add as much as 100 Coinbase transactions without delay and get a reduction to TurboTax merchandise using this link.
First, obtain your Coinbase transaction historical past here. Subsequent, you’ll be guided as a part of the TurboTax Premier expertise to add this transaction historical past immediately into TurboTax Premier. Please notice that the TurboTax crypto import function pulls in transactions from Coinbase (not Coinbase Professional) and the iOS and Android apps. In case you additionally use Coinbase Professional and need assist compiling a single transaction historical past throughout exchanges, see beneath for details about utilizing our associate CoinTracker.
Coinbase prospects rise up to a $20 low cost on TurboTax providers by way of this hyperlink. Please notice that you must use this hyperlink to get the low cost at checkout.
The brand new cryptocurrency expertise is accessible in TurboTax Premier, TurboTax Reside Premier, TurboTax Self-Employed, and TurboTax Self-Employed Reside
3. We’ve built-in with CoinTracker
For our knowledgeable prospects, Coinbase is partnering with CoinTracker to make it straightforward to summarize all your transaction exercise for 2018, it doesn't matter what exchanges or wallets you used (together with Coinbase Professional).
CoinTracker additionally companions with TurboTax and can be utilized to add a complete view of your crypto exercise. Go to this page to study extra in regards to the integration and get a reduction.
What to anticipate as a Coinbase buyer
Just some segments of Coinbase customers obtain paperwork from Coinbase throughout tax season: Coinbase Professional, Prime, and Service provider prospects who meet a threshold of greater than $20,000 in gross proceeds and 200 transactions in 2018 will obtain an IRS Kind 1099-Ok; so will prospects on these platforms who meet decrease thresholds in AR, DC, MA, MS, MO, NJ, and VT (extra data here). Earn.com prospects above $600 in earnings will obtain Kind 1099-MISC. All recipients will obtain emails with additional particulars, and might study extra in our Tax Resource Center.
The legislation requires Coinbase to supply these types, however we acknowledge that these recipients make up only a small fraction of the customers who've questions on tax season. That’s why we’ve closely invested in partnerships and different instructional sources.
Whereas we’re not a tax advisor and at all times suggest that prospects communicate with a tax skilled concerning their particular scenario, our purpose is to be the easiest-to-use cryptocurrency change by offering the instruments and sources that assist prospects method tax season with confidence.