Cryptocurrency Tax Calculator 2022-2023 (2024)

FAQs

How do I calculate my crypto taxes? ›

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.

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.

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%.

You're required to pay tax on the profit you made from your sale (total sale price of your cryptocurrency minus original purchase price), commensurate with your personal tax bracket. So under these rules, you may be looking at quite a large capital gains tax assessment.

Costs for a professional crypto CPA

A CPA will charge between $37 to $400 an hour, and many will not be qualified as crypto tax accountants. Given the complexity and shifting regulations around crypto taxes, it's important to work with a true crypto tax accountant who understands the ins and outs of the industry.

Crypto Tax Calculator has layers of technical and operational controls such as antivirus, penetration testing and vulnerability scanning to protect all user information. Our application allows you to delete all imported data (and associated wallet/exchange information) at any time for any reason.

FIFO is considered the 'default' accounting method. As a result, it's the method used by most investors to calculate their capital gains. If the price of your cryptocurrency has dropped since you first purchased it, using FIFO may help you reduce your capital gains.

You can send any of your crypto between your personal wallets without paying any taxes; Even if you don't sell any of your crypto, you'd still need to answer the crypto question on Form 1040, including reporting your crypto income in your income tax return.

How much capital gains are tax free? ›

For crypto income, on the prepare your 2023-24 return (step 4) page, select add/edit next to other income. Next to any other income, select add. In the drop down menu under type of payment, select other. For the description, write a description of your income - for example, staking rewards.

If you did have capital gains or losses, you'll also record them on your Form 1040/Schedule D. If you received wages in cryptocurrency, you'll record that amount as wages on your 1040. If you were paid for services in cryptocurrency, you'll record that amount as either other income on Sch 1 or income on Schedule C.

How are crypto gambling winnings taxed? Crypto gambling winnings are treated as income based on its USD value at the time of receipt. If you sell crypto that you've won from gambling, you will incur a capital gain or loss depending on how the price of your crypto has changed since you originally received it.

1 USD = 0.000017564 BTC Jul 12, 2024 04:20 UTC

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