Filing crypto earning with my taxes

IgnitedFire

Can I use FreeTaxUSA to file crypto earnings? Does swapping one coin for another count as a taxable event? Can I use tax loss harvesting with crypto? Should I get a tax expert or can I file taxes alone with crypto earnings?

LynR

Hello! Thank you for attending our live event!

You can use FreeTaxUSA to file your crypto earnings. Here is a link to a basic article from our community to get your started:

https://community.freetaxusa.com/kb/articles/52-reporting-crypto-currency-transactions?utm_source=community-search&utm_medium=organic-search&utm_term=crypto

To answer your other questions:

Any trade of one cryptocurrency for another cryptocurrency is considered a sale and a purchase of new cryptocurrency by the IRS. You would need to report the sale using the dollar value at the time of exchange as the sale price. The new cryptocurrency you traded into would be taxable when you sell that cryptocurrency.

Transferring your cryptocurrency from one wallet you own to another wallet you own is not taxable if the cryptocurrency is not sold or exchanged as part of switching wallets.

Tax-loss harvesting with crypto is reported in our software the same and any other sale or disposition of crypto investment.

My advice would be to give filing on your own a try and if you have questions along the way, you can add our Pro Support product to your account so you can talk with a Tax Pro regarding your questions.