If you are self-employed or own a cryptocurrency portfolio, you need to file your tax return this year. This guide will show you how to do it.
1: Create an Account with Koinly
Cryptocurrency taxation is a hot topic and there are many different opinions on the matter. Koinly, a new online cryptocurrency tax filling software, wants to help you figure out exactly how to pay your taxes with cryptocurrency and make the full tax process easy for you.
First, make sure you have a valid email address and create an account with Koinly. Once you have an account, you can start trading cryptocurrencies and pay your taxes using our Tax Calculator. You can also use our Tax Calculator to learn more about how different types of cryptocurrencies will affect your tax liability.
Koinly is the easiest way to start paying your taxes with cryptocurrency and we want to help you get started!
2: Download the Koinly Crypto Tax App
The Koinly Crypto Tax App makes it easy to file your taxes with cryptocurrency. Just scan the QR code on your tax return and our app will automatically pull in all the information you need. You can also manually enter information if you prefer.
The app is free to download and use and we hope you find it helpful in preparing your taxes this year.
3: Set Up Your Tax Profile
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. As a result, they have generated increased interest from investors and lawmakers alike as a potential new form of asset class.
There is no universal definition of cryptocurrency, but generally speaking, cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. As a result, they have generated increased interest from investors and lawmakers alike as a potential new form of asset class.
In order for you to properly account for cryptocurrencies in your taxes, you first need to set up your tax profile. This will involve understanding how cryptocurrencies work and what taxes apply to them. After setting up your profile, you can then begin tracking your cryptocurrency transactions and gains/losses accordingly.
4: Add Cryptocurrency Transactions
The first step in properly tracking your cryptocurrency transactions and gains/losses is to add them to your tax profile. This will involve understanding how cryptocurrencies work and what taxes apply to them.
Once you have added your transactions to your tax profile, you can then begin tracking your cryptocurrency gains/losses accordingly. Generally speaking, any income or loss from cryptocurrency transactions will be taxable. However, there are a few exceptions that will apply depending on the type of cryptocurrency involved and the country in which you reside.
In order for you to properly account for cryptocurrencies in your taxes, you first need to set up your tax profile. This will involve understanding how cryptocurrencies work and what taxes apply to them. After setting up your profile, you can then begin tracking your cryptocurrency transactions and gains/losses accordingly.
5: Complete Your Tax Return
Once you have tracked your cryptocurrency transactions and gains/losses, it is time to complete your tax return. This will involve filing your taxes based on the information you have gathered. Make sure to consult with a tax specialist if you have any questions along the way.
6: Save and Submit Your Info
Once your tax return is complete, make sure to save all of your information in a secure location. This includes your tax file number, contact information, and cryptocurrency transaction information. You can then submit all of this information via the online form or through the traditional mail system.
7: Receive Your Refund!
If you followed all of the steps outlined in this article, you should receive a refund in the mail. Make sure to keep track of your refund so you can correctly claim it on your next tax return.
Conclusion
Filing your cryptocurrency tax return is easy if you follow these steps. You can get started today!
