Cryptocurrency taxes. Crypto taxes explained. Tax forms needed for Cryptocurrency taxes USA

[@jisungyu2]

Best demo/walkthrough video on how to report tax on cryptocurrency

[@KatieStOresCFPChFCEA]

[10:05am PST] @SaintOres.com Thanks J, I appreciate the nice comment.

[@APL6526]

Thank you so much, your expertise is invaluable!

[@KatieStOresCFPChFCEA]

Thanks, You're very welcome!

[@eROBINc]

VERY HELPFUL Thank you!

[@KatieStOresCFPChFCEA]

Thanks Robin, I'm glad it was helpful! And good luck with the crypto--- Sorry- Digital Assets.

[@tommyv3]

Thank you for the most complete explanation of crypto taxing I have seen... It all makes sense now!

[@KatieStOresCFPChFCEA]

[9:32am PST] @TaxesbyKatie.com Thanks Tommy, Love the nice comment... Glad it was helpful!

[@MrT6bill]

Wow! What a professional video! Best explanation of crypto taxes I have seen.

[@KatieStOresCFPChFCEA]

[10:37am PST] @TaxesbyKatie.com Thanks for the great comment Bill, Glad you liked it! I especially like the word 'professional'.

[@danchatka8613]

You are the best personal finance explainer I know of. Your PPP loan videos were super helpful.

[@KatieStOresCFPChFCEA]

[12:31pm PST] @TaxesbyKatie.com Thanks Dan, Ah, the old PPP videos.

[@charlie81dbz]

THANK YOU so much for this. It's almost impossible to find a video about crypto taxes that doesn't tell you to have a software auto generate something for you to send to Turbo Tax or to an accountant. For those of us who normally self file and dabble in crypto this answered almost all of my form questions. A little section on reporting non-business mining income is all I need now. Seriously, thank you so much!!

[@KatieStOresCFPChFCEA]

[10:27am PST] @TaxesbyKatie.com Thanks Charlie, Hopefully I can get some more crypto accounting videos out after tax season is over. Most crypto reporting I've seen from people this year was a mess and took a while to clean up.

[@scott_t_woodsman]

Great job on the taxes. Love the videos.

[@KatieStOresCFPChFCEA]

[12:11pm PST] @TaxesbyKatie.com Awesome, thank you!

[@luizas4687]

Thank you, very helpful!

[@KatieStOresCFPChFCEA]

[10:27am PST] @TaxesbyKatie.com Glad it was helpful! ----- If you found this helpful, could you help me out by giving me a five-star review on google.com/localservices/review/taxesbykatie

[@KatieStOresCFPChFCEA]

Also, if you found this helpful, could you help me out by giving me a quick review at google.com/localservices/review/taxesbykatie g.page/r/CbkccvLd0hy5EAI/review

[@valeenoi2284]

6:46 What if you purchase cryptocurrency using another token (obviously not using USD)?

[@KatieStOresCFPChFCEA]

[12:40pm PST] @SaintOres.com Hello Valeen, Trading one cryptocurrency for another is a taxable event.

[@valeenoi2284]

@@KatieStOresCFPChFCEA Understood. Thanks.

[@ericfitzpatrick5319]

Which forms are needed to file, for trading on foreign exchanges; I know it's different from these forms in your video?

[@KatieStOresCFPChFCEA]

[10:45 AM PST] @SaintOres.com Hello Eric, Sorry for the delay, your comment went into 'Held for Review' for some reason. Here are some of the most common forms you'll need..... Form 1040: This is the standard U.S. Individual Income Tax Return. You will use this form to report your total income, including any gains or losses from digital asset trades. Form 8949: This form is used to report capital gains and losses from the sale or exchange of property, including digital assets. You will need to list each transaction separately, including the date of purchase or sale, the cost basis, and the sales price. Schedule D: This form is used to summarize the capital gains and losses reported on Form 8949. Form 8938: If you hold more than $50,000 in foreign financial assets, including digital assets held on foreign exchanges, you may be required to file Form 8938. This form is used to report your ownership of those assets to the IRS. Form 114: If the total value of your foreign financial accounts, including digital assets, exceeds $10,000 at any time during the year, you may be required to file Form 114 (also known as the Foreign Bank Account Report, or FBAR). Note that this is not an complete list and other forms may be required depending on your specific circumstances. It's always best to consult a tax professional or accountant for guidance on how to report digital asset trading on foreign exchanges on your tax return.

[@freeman7832]

good evening, do you help your clients online or in person to report crypto tax , thank you

[@KatieStOresCFPChFCEA]

[09:15 AM PST] @SaintOres.com Hello Amar, Good Morning. Yes, both in person and virtually. Most of my crypto clients are done virtually since they are on the east coast. But even on the west coast where I am, most digital asset clients do everything through my tax portal.

[@choyna.]

Thank you for this informative video! Just a quick question for clarity. If I've already used the CSV file from BlockFi to enter all my transactions into my crypto tax software and generate the Form 8949. Do I still need to input BlockFi Form 1099-B to my tax return? Or is the information included in Form 8949 all the IRS needs?

[@KatieStOresCFPChFCEA]

[3:01 PM] @SaintOres.com Hello Choyna, The information from your 1099-B is reported on Form 8949 and/or a Schedule D as a capital gain or loss. You can complete Schedule D (a summary) and attach 8949 (detailed information) from BlockFi to your tax return. But you must still include the data from your 1099-B to generate Schedule D.

[@choyna.]

@@KatieStOresCFPChFCEA Thank you very much for your answer Katie, I really appreciate it! 🙂

[@KatieStOresCFPChFCEA]

You're welcome... You've got until April 18th this year to get your taxes in.

[@millerk115]

None of the exchanges I use provide the 1099-B.. and my tax preparer won't file my taxes without it. Coinbase provides us with a service to autofill out our forms but they say its not good enough. So frustrating...

[@KatieStOresCFPChFCEA]

[3:35pm PST] @TaxesbyKatie.com Hey K, You can try to pull Form 8949 from Coinbase, that should work.

[@Roots-o5b]

Form 8949 is what I have but only (a) and (e) is filled in and my name and the rest are blanked is that alright?

[@KatieStOresCFPChFCEA]

[9:52am PST] @TaxesbyKatie.com Hello Fetoa, Yes, it is alright.

[@clijeron1973]

This was an awesome video, very informative and full of insights. One thing that my accountant mentioned is that we can offset crypto losses with gains but only $3,000 can be offset for personal gains … anything above that has to carried over. This was a bit confusing to me. Thanks again !!

[@KatieStOresCFPChFCEA]

[11:31am PST] @TaxesbyKatie.com Hey Carlos, Thanks for nice comment about the video..... First: That's what you pay your accountant for, to explain financial stuff so it isn't confusing. For The Question: Your maximum net capital loss in any tax year is $3,000. The IRS limits your net loss to $3,000 (for individuals and married filing jointly) or $1,500 (for married filing separately). Any unused capital losses are rolled over to future years. I hope this clarifies it.

[@roniaskenazy5312]

Do foreigners have to fill ou these reports or only in the countries of fiscal residence?

[@KatieStOresCFPChFCEA]

[3:35pm PST] @TaxesbyKatie.com Answered.....

[@rspaulding]

Can I use HIFO accounting method this year and change it to FIFO another year?

[@KatieStOresCFPChFCEA]

[4:08pm PST] @TaxesbyKatie.com Hey Rspaulding, As a general rule, you can switch from one accounting method to another on a year-to-year basis. However, switching back and forth between methods may lead to calculation errors and can be a red flag for the IRS.

[@Ddstairclimber]

can you do a vide on how to read the csv reports manually, how to interpret them

[@KatieStOresCFPChFCEA]

[10:27am PST] @TaxesbyKatie.com Hello Stair Climber, Sure, I plan to do a bunch more videos like that but not until tax season is over on April 18th.

[@d.h.1827]

Thanks for this video and info. Gotta say tho that crypto has made filing my taxes a way longer and an even more complicated process this year. I earned (didn't buy) about $59 in crypto on Coinbase in 2021 and they are only providing a gains/loss report, not a 1099-misc form. The state I Iive in requires the 1099-misc form when I file. And so I'm not really sure what to do at this point? I see others had issues with this in the comments but no follow up as to what they did to file properly. This is so frustrating.

[@charlie81dbz]

She mentioned in the video that exchanges generate the 1099-MISC for $600 or higher, so I'm thinking that's why you didn't get the form (Same here, my Coinbase earnings were also under $600). I am just going to go ahead and put my totals on Line 8z on Sched. 1 as if they had sent the form, since it was income. I've done that in the past with interest earned from savings accounts when it was under the 1099 INT threshold amount.

[@braden6992]

Katie you seem to really know what you are talking about! I have had totally different responses from accountants on the following question. It has to do with carryforward losses. Let's say you have both short-term and long-term carryforward losses from prior years. If the short-term losses are then depleted (with short-term gains) can future short-terms gains be offset with the remaining long-term carryforward losses? Please share your wisdom.

[@KatieStOresCFPChFCEA]

[1:26pm PST] @SaintOres.com Hello Braden, Way to butter someone up before asking a question.... Here's your answer... Per IRS PUB 550, "Use short-term losses first. When you figure your capital loss carryover, use your short-term capital losses first, even if you incurred them after a long-term capital loss. If you have not reached the limit on the capital loss deduction after using the short-term capital losses, use the long-term capital losses until you reach the limit." For example, if you were to sell a long-term investment at a $15,000 loss but had only $5,000 in long-term gains for the year, you could apply the remaining $10,000 excess to any short-term gains. Hope this helps.

[@prinklejain5557]

Hey Katie! Thanks for this video! Can you help me in the case where wash sale loss is more than the loss (for covered tax lots) incurred on selling? How should we report that in return?

[@KatieStOresCFPChFCEA]

[11:31am PST] @TaxesbyKatie.com Hello Prinkle, as of right now crypto is exempt from the wash sale rule. My E&O insurance doesn't allow me to provide advice on tax returns that are not prepared by me.

[@prinklejain5557]

@@KatieStOresCFPChFCEA in the securities form, wash sale is also there! Should i check all 800 approx transactions to recalculate wash sale loss? Or the total figure should work? In the form provided by broker, if it is showing Proceeds= 338k Cost=373k Ws loss=43k Net gai =8k What should be the gain or loss i should report? Should i really recalculate it?

[@rickyeredia2916]

My Turbo tax person is asking for 1099 form but I don't know how to obtain it? Also, crypto tax software allows only 8949 form, what should I do?

[@KatieStOresCFPChFCEA]

[1:29pm PST] @TaxesbyKatie.com Hello Ricky, There are almost two dozens versions of the 1099 form. I'm not sure which one they need. Luckily you have a Turbo tax person to help you out. Please contact Turbo Tax support. They will be able to help you.

[@rickyeredia2916]

@@KatieStOresCFPChFCEA Thanks, from what I learn from further Google searches was the exchange don’t have to provide 1099 form until 2023 and if not provide a 1099 form , still report crypto. Also, Turbosite apparently says this too. Iam sorry, I got so confused cause I thought the standard is to report 8949 on a 1040 form. In addition, crypto softwares only provided 8949 form.

[@Anjilenie]

When do I pay taxes on crypto? My broker is withholding my profits until i pay taxes out of pocket first. Does that sound legit?

[@KatieStOresCFPChFCEA]

[10:54am PST] @SaintOres.com Hello Angelene, When you realize a gain after selling crypto, you're required to pay taxes on the amount of the gain. U.S. brokers will not collect or withhold taxes from trading accounts. I don't understand how your broker is withholding your profits.

[@GANTZ100pts]

Im a bit confused still. I got like $10 of crypto as a reward for signing up with coinbase. (Did not sell it) I'm told this still counts as income. So where and what forms do I fill out.

[@KatieStOresCFPChFCEA]

[2:03pm PST] @TaxesbyKatie.com Hello GANTZ, It should be reported as miscellaneous income on your tax return.

[@abdullahimohamed6270]

I got the 8949 form but it doesn’t have my name or my ssn?

[@KatieStOresCFPChFCEA]

[11:35am PST] @TaxesbyKatie.com Hello Abdullahi, That isn't correct. Contact your exchange and have them send you a correct 8949 with all the info.

[@robrussell8307]

Great Video, How about providing some real time examples. for Example: money left my bank account went to exchange tp buy USDT, from there. Exchanged USDT to BTC. So, Is that 2 separate transactions? and so On..

[@KatieStOresCFPChFCEA]

[10:37am PST] @TaxesbyKatie.com Thanks for the suggestion, Rob. I'm planning on filming some more crypto accounting videos after tax season is over. But right now, I'm fixing everyone's crypto accounting mess for this past tax year. It's the wild west of accounting out there.

[@juanrodrigo1]

NOOO TAX. NEVER