Crypto Cable

5 Ways to Easily Calculate Taxes on Your Crypto Earnings

Tax season is in full swing for millions of people. Even though the coronavirus pandemic has led some regulatory agencies like the U.S. Internal Revenue Service to extend the filing deadline for 2020 returns, many prefer to finish their taxes as quickly as possible to potentially get a return.

The popularity of cryptocurrency means many taxpayers have a new asset class to incorporate into their filings. 

Tax authorities are now taking a more stringent look at crypto holders and traders. The IRS has issued revised instructions for tax filers in the last couple of years and now directly asks on the 1040 form if a taxpayer received, sold, sent,m exchanged, or otherwise acquired any “financial interest in any virtual currency.” 

Crypto holders understandably now pay closer attention to their tax returns as regulatory agencies both clear up questions about digital asset classification and express greater interest in hunting down crypto tax cheats. In March, the IRS sent a “John Doe’ summons to Kraken and issued another to Circle in early April to get specific user information. 

Fortunately, there are a number of ways crypto holders can calculate taxes based on their earnings and present accurate information to pertinent authorities. Here are five different options any investor can rely on.Use A Crypto Tax Software

Crypto-focused tax software is increasingly popular among those unwilling to fork over large amounts of money to an accountant. A crypto solution like CryptoTaxCalculator charges a yearly subscription fee to import and categorize transaction histories to …
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