CoinLedger can aggregate your transactions across different wallets and exchanges to help you easily report your cryptocurrency taxes. Coinledger is a cost-effective way of filing crypto taxes without manually inputting transactions into your tax forms. The software integrates with major exchanges and wallets using APIs or public wallet addresses, automatically importing transaction data.
The goal is to eliminate year-end surprises and automate data entry to the greatest extent possible. If you wish to import your trades through API, you can create a read-only API key in the ‘API’ section of your ‘Settings’ within Coinbase Pro. Many of the platform’s features are now available on Coinbase Advanced Trade. Within the CoinLedger platform, select ‘Import’ and select the option ‘Ethereum Wallet’. For a complete and in-depth overview, please refer to our Complete Guide to Cryptocurrency Taxes.
Instead of using a bank to create, transfer, and exchange funds, cryptocurrency employs a distributed and encrypted blockchain network to process transactions. No bank or government authority controls cryptocurrency, but they certainly regulate it (or try to), including by imposing taxes on the profits you gain from it. This information is required to calculate your gains or losses and to determine your tax liability. If you do not receive a 1099, you should still use Coinbase’s transaction history to manually report taxable events on your return. To avoid situations like this, you should keep records of your crypto transactions across all of your wallets and exchanges. If you don’t receive one, you are still obligated to report your gains, losses, and income.
Why trust our crypto tax experts
The crypto tax attorneys and accountants at Gordon Law are here to make your Coinbase tax reporting seamless and accurate. Save time, money, and stress by working with us this upcoming tax filing season. The process involves listing each trade or sale on separate lines, noting dates, proceeds, cost basis, and any necessary adjustments. Discrepancies happen if your exchange doesn’t track transfers correctly or lacks cost basis data from external wallets. You can correct the numbers on your return or, if needed, reach out to the exchange for amendments.
That includes wages paid in crypto, referral bonuses, airdrops, or staking rewards. Income triggers tax obligations whether you receive dollars or digital tokens. When you gain control of the assets, report the fair market value, then treat it as ordinary income. Not reporting gains or income can lead to letters from the IRS, potential penalties, and undue stress. The agency has become more proactive in matching exchange data with taxpayer records.
Coinbase Taxes 101: How to Report Coinbase on Your Tax Return (2025 Update)
Join 500,000 people instantly calculating their crypto taxes with CoinLedger. Jordan Bass is the Head of Tax Strategy at CoinLedger, a certified public accountant, and a tax attorney specializing in digital assets. Coinbase Pro is one of the world’s leading cryptocurrency exchanges. It is popular for its trading APIs that provide secure trading bots and a web socket that gives users access to real live feeds.
How Do I Export My Tax Data from Coinbase into TurboTax?
If you did not have taxable income during the year, it’s unlikely that Coinbase will report your cryptocurrency activity to the IRS. Simply holding cryptocurrency or transferring it between wallets you own is not considered a taxable event. At this time, Coinbase doesn’t provide a record of your gains and losses to the IRS. However, Coinbase will likely begin reporting these transactions to the IRS starting in the 2025 tax year — when the crypto provisions of the infrastructure bill are scheduled to go into effect.
How to report your Coinbase Wallet transactions on your taxes
If you’ve used Coinbase for crypto transactions, retrieving your 1099 form and properly reporting your taxable events is crucial for tax compliance. Even if Coinbase doesn’t issue you a 1099, you are still responsible for reporting capital gains and other taxable income. Staying organized throughout the year will make tax season much smoother. You can generate your gains, losses, and income tax reports from your Coinbase Wallet investing activity by connecting your account with CoinLedger. Once you’ve connected your other wallets and exchanges, you’ll be able to generate complete crypto tax forms in minutes.
If you had more than $600 of ordinary income earned on Coinbase in the 2024 tax year, the platform will issue Form 1099-MISC to you and the IRS. At this time, Coinbase does not report capital gains and losses via Form 1099. Taxpayers are required to report transactions involving virtual currency as US dollars on https://xcritical.pro/ their tax returns, which means they must determine its fair market value as of the transaction date. Once your Coinbase data is imported and verified, proceed with the rest of your TurboTax return.
FreeTaxUSA provides a surprising amount of support for a free service (federal only; state returns cost $14.99 each). It has a good article that identifies the different IRS forms where you need to enter transactions based on how you received the cryptocurrency (such as investment, mining, and wages). As mentioned, you can report your cryptocurrency income on several IRS forms, such as Form 1099-B, Form 1099-K, Form 8949, and Form W-2. Where you report it on your tax return depends on how and why you received it. How do you enter these transactions as you prepare xcritical rezension your income tax return? Below, we answer those questions and explain all that’s relevant to taxes and cryptocurrency.
- Fill in the format you want to receive your document in and choose the start and end dates you desire.
- But do whatever you need to do to include tax-related cryptocurrency activity thoroughly and accurately on your income tax return.
- In this guide, we’ll break down everything you need to know about Coinbase’s tax reporting policies.
- Does this mean you could be on the hook for transactions going back to 2014?
- Regardless of the platform you use, selling, trading, earning, or even spending cryptocurrency can have tax implications.
Fill out this form to schedule a confidential consultationwith one of our highly-skilled, aggressive attorneysto help you tackle any tax or legal problem. Fill in the format you want to receive your document in and choose the start and end dates you desire. To stay up to date on the latest, follow TokenTax on Twitter @tokentax. TokenTax content follows strict guidelines for editorial accuracy and integrity. We do not accept money from third party sites, so we can give you the most unbiased and accurate information possible.
Step 4: Manually Import the CSV into TurboTax
Crypto is no longer a niche corner of the financial system, and regulators have taken notice. The IRS has expanded its enforcement capabilities, hired experts, and built tools to monitor digital asset activity. Here’s how much tax you’ll be paying on your income from Bitcoin, Ethereum, and other cryptocurrencies. Our attorneys have decades of experience in the complex fields of tax law, cryptocurrency, marketing law, and more. This guide will take you through how to get Coinbase Pro documents you need to file your taxes. Calculate your crypto gains with our free crypto profit calculator.
You can give virtual currency as a gift, transfer it between wallets or exchanges, and purchase it with US dollars without creating a taxable situation. But if you have numerous taxable events under your belt or need to catch up from past years, you might need to consult a professional, preferably a CPA who specializes in virtual currency tax issues. That’s why using crypto transaction tracking tools—especially those that integrate directly with professional tax preparation software like UltraTax, Drake, or Lacerte—is more than a convenience.
Generate your crypto tax report today
Manual entry is fine xcritical scammers if you just have a few transactions to record, but it becomes unwieldy if you are heavily involved with crypto. If you haven’t yet built crypto fluency into your tax prep workflow, now is the time. A new generation of clients is already there, and they are counting on you to be ready.