How do I calculate my crypto taxes?

All you have to do is calculate the total tax owed on cryptocurrency according to your total annual income and filing status. If you’re married and filing jointly and you earn $100,000 per annum, the tax rate that applies to you is 22%. So if your total short-term capital gains on crypto amount to $1,000, you will pay $220 in tax.

How do I report crypto taxes?

After you’ve collected all of your crypto transactions, you must report them on IRS Form 8949, Sales and Other Dispositions of Capital Assets. This form is divided into two sections: short term (for crypto held one year or less) and long term (for crypto held longer than one year).

What are the tax implications of investing in cryptocurrency?

If you’ve held your crypto for one year or more, any profit would be long-term capital gains, taxed at a lower rate, determined by your annual income. If you earn cryptocurrency by mining it, or receive it as a promotion or as payment for goods or services, it counts as regular taxable income.

Is there any tax when I sell or spend my crypto at a loss?

If you sell or spend your crypto at a loss, you don’t owe any taxes on the transaction. If you bought $10,000 in Bitcoin and sold it for $13,000, for example, your taxable gain would be $3,000.