How to do your MEXC taxes in 2024: Complete Instructions + Tools (2024)

FAQs

How to do taxes on Mexc? ›

Navigate to your MEXC account and find the option for downloading your complete transaction history. Import your transaction history directly into CoinLedger by mapping the data into the preferred CSV file format. CoinLedger automatically generates your gains, losses, and income tax reports based on this data.

2024 is the most important tax year for crypto investors to be reporting. For 2024, you still need to collect crypto data and properly report activity, including your cost basis. Starting in 2025, the IRS will have a “firehose of information” to verify whether past reporting was accurate, Gordon said.

Reporting your crypto activity requires using Form 1040 Schedule D as your crypto tax form to reconcile your capital gains and losses and Form 8949 if necessary. You report your total capital gains or losses on your Form 1040, line 7.

Once connected, Koinly will calculate your MEXC taxes based on your location and generate your crypto tax report, all within 20 minutes.

However, MEXC might still report your crypto transactions to your country's tax authority, like the IRS or HMRC.

To open a MEXC account in the USA, you need to install a VPN and work your way around US regulations. It is important to note that MEXC itself states on its terms that the US is a prohibited country of use, so ease with caution and at your own risk!

You must report income, gain, or loss from all taxable transactions involving virtual currency on your Federal income tax return for the taxable year of the transaction, regardless of the amount or whether you receive a payee statement or information return.

Some cryptocurrency exchanges do not report user transactions to the IRS, including: Decentralized crypto exchanges (DEXs) like Uniswap and SushiSwap.

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.

However, it looks like this is changing as many previously unverified users are now receiving correspondence from MEXC asking them to complete verification by June 30, 2024, or withdraw their funds. Unfortunately, as of late 2023, MEXC isn't available for US residents.

Can you cash out on MEXC? ›

To get your money out of MEXC, you'll need a third-party wallet (like ZenGo) or an exchange that offers a crypto-to-fiat service.

One advantage of MEXC is that it has lower trading fees than the other platforms. However, it also has a smaller selection of coins available for trading. Additionally, MEXC is not as well-known as Binance or Kucoin, so it may be less user-friendly for beginners.

How is Forex taxed? Forex is generally taxed as either capital gains or ordinary income, depending on the holding period and the tax regulations of the country. Profits from short-term trades are often subject to ordinary income tax rates, while long-term trades may qualify for lower capital gains tax rates.

How do I report crypto winnings on my tax return? If you're not a professional gambler, you should report your gambling income on Form 1040 Schedule 1. You can report your rewards on the row labeled 'Gambling income'. You can report your losses on Form 1040 Schedule A as an itemized deduction.

The rate depends on how long you owned the crypto and your income. Short-term capital gains tax rates range from 10% to 37%. Long-term rates can be as low as 0% or as high as 20%. Selling crypto for a loss and moving wallets generally won't generate tax liability, but staking and crypto-crypto trading do.