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How to file crypto taxes in the US (2024–2025 tax season)
- US crypto investors must file their 2024 tax returns by April 15, 2025, accurately reporting all crypto transactions to the IRS.
- Crypto held for under a year is taxed as ordinary income (10%-37%), while over a year qualifies for lower capital gains rates (0%, 15%, or 20%).
- Transactions like selling, trading, or spending crypto incur taxes, while holding or transferring between wallets does not.
- Mining, staking, airdrops, and crypto payments are taxed as income at applicable rates.
- Understanding tax filing is crucial to avoid penalties and stay compliant with the IRS.
- The IRS treats cryptocurrencies as property for tax purposes, taxing gains on selling, trading, or disposing of them.
- Crypto tax rates in the US vary based on income and holding period, with long-term rates ranging from 0% to 20% and short-term rates matching ordinary income tax rates.
- Detailed record-keeping is essential for accurate reporting, as gains are taxed and losses can offset taxable income.
- Gifting cryptocurrency in the US is generally not taxable, but specific thresholds and reporting requirements apply for significant gifts.
- Forms like 8949, Schedule D, and Schedule 1 are crucial for reporting capital gains, income, and additional earnings from crypto transactions.
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