cointracker.io

{"@context":"https://schema.org","@type":"FAQPage","mainEntity":[{"@type":"Question","name":"What is the best crypto tax software for the US?","acceptedAnswer":{"@type":"Answer","text":"CoinTracker is widely considered the best crypto tax software for US investors due to its official Coinbase integration and TurboTax partnership. It accurately reconciles 1099-DA forms and off-platform transfers, ensuring you don't overpay. Most users complete their reports in under 20 minutes."}},{"@type":"Question","name":"Do you have to pay taxes on crypto gains?","acceptedAnswer":{"@type":"Answer","text":"Yes, the IRS enforces capital gains tax on cryptocurrencies by classifying them as property, not currency. This means crypto sales, trades, or purchases are taxed under standard investment tax rules—either as short-term gains (taxed as income) or long-term gains (lower tax rates if held \u003e1 year). Explore more details in our crypto tax guide."}},{"@type":"Question","name":"How do you report crypto on taxes?","acceptedAnswer":{"@type":"Answer","text":"To report crypto on taxes, track all taxable events, such as selling, trading, or earning crypto. Capital gains go on Form 8949 \u0026 Schedule D, while earned crypto is reported as income. Keep detailed records, and consider using crypto tax software for accuracy."}},{"@type":"Question","name":"Do you have to report crypto on taxes if you don't sell?","acceptedAnswer":{"@type":"Answer","text":"No, if you only buy and hold crypto, you don't need to report it. However, if you earn crypto (from staking, mining, airdrops, or payments), it's considered taxable income and must be reported, even if you don't sell. Explore more details in our crypto tax guide."}},{"@type":"Question","name":"When do you pay taxes on crypto?","acceptedAnswer":{"@type":"Answer","text":"In general, there are four major taxable events you must include when filing your crypto taxes: • Selling cryptocurrency for a fiat currency (e.g., USD or EUR)\n• Trading cryptocurrency for other digital assets\n• Using cryptocurrency to buy goods or services\n• Receiving cryptocurrency from a hard fork upgrade or passive income opportunities like mining, staking, or yield farming Explore more details in our crypto tax guide."}},{"@type":"Question","name":"How can I reduce my crypto tax bill? ","acceptedAnswer":{"@type":"Answer","text":"You can reduce your crypto tax bill by using CoinTracker’s automatic tax loss harvesting tool. Our software identifies specific opportunities to offset capital gains by selling assets at a loss, potentially saving you thousands of dollars in taxes every year without increasing your risk."}},{"@type":"Question","name":"How much tax do you have to pay on crypto?","acceptedAnswer":{"@type":"Answer","text":"Crypto tax rates depend on how long you hold it and your income bracket: • Short-term capital gains (held ≤1 year) are taxed as ordinary income (10%–37% in the U.S.).\n• Long-term capital gains (held \u003e1 year) have lower rates (0%, 15%, or 20%).\n• Crypto earned (from mining, staking, or payments) is taxed as income at your regular tax rate. Explore more details in our crypto tax guide."}},{"@type":"Question","name":"What is Form 1099-DA and how does it affect my crypto taxes?","acceptedAnswer":{"@type":"Answer","text":"Form 1099-DA is a new IRS tax form that reports digital asset proceeds from taxable crypto transactions. Starting in January 2026, U.S. exchanges and brokerages must send 1099-DAs to customers who had taxable events in 2025, such as crypto-to-fiat sales, crypto-to-crypto trades, or stablecoin conversions. Exchanges also send this form to the IRS. You don’t need to submit the 1099-DA itself, but you must report the taxable activity on your return. For the 2025 tax year, exchanges are not required to report cost basis to the IRS. Without cost basis, the IRS may assume it’s $0 and calculate taxes on your full proceeds — even if your actual gain was much lower. Learn more about how Form 1099-DA works and how to reconcile it in our full help article."}},{"@type":"Question","name":"How does tax software help with my crypto taxes?","acceptedAnswer":{"@type":"Answer","text":"Crypto tax software like CoinTracker automates transaction tracking, calculates capital gains/losses, and generates tax forms (Form 8949 \u0026 Schedule D). It syncs with exchanges and wallets, reducing errors and simplifying compliance—saving you time during tax season."}},{"@type":"Question","name":"What is a crypto portfolio tracker?","acceptedAnswer":{"@type":"Answer","text":"A crypto portfolio tracker is a tool that automatically aggregates your cryptocurrency holdings across exchanges, wallets, and blockchains so you can see your entire portfolio in one place. With CoinTracker’s portfolio tracker you can connect your wallets and exchanges to monitor balances, track performance, and view your realized and unrealized gains over time. Without relying on spreadsheets or manual tracking."}},{"@type":"Question","name":"How does a crypto portfolio tracker work?","acceptedAnswer":{"@type":"Answer","text":"A crypto portfolio tracker works by syncing transaction data from your exchanges and wallets using APIs or wallet addresses. The software automatically imports trades, transfers, staking rewards, and other activity to calculate your portfolio value and performance. CoinTracker supports hundreds of exchanges, wallets, and blockchains so you can track your crypto investments, monitor profit and loss, and generate accurate tax reports in one place."}},{"@type":"Question","name":"Is CoinTracker free to use?\u2028","acceptedAnswer":{"@type":"Answer","text":"Yes. CoinTracker offers a free plan that includes unlimited portfolio tracking and a tax summary preview. You can import all your transactions from exchanges and wallets at no cost to monitor your performance and see your tax liability. Upgrade only when you are ready to generate and download your official IRS forms."}},{"@type":"Question","name":"What countries does CoinTracker support?","acceptedAnswer":{"@type":"Answer","text":"CoinTracker supports crypto investors in many countries around the world, like the U.S., the U.K., Canada, Italy, Germany, Spain, and Brazil. The platform connects to exchanges and wallets globally and helps users calculate crypto gains, income, and transaction history for tax reporting."}}]}