Left your crypto taxes until the last second? Here’s how to get your crypto taxes done by April 18 with the least amount of friction possible.

The IRS has been really clear that cryptocurrency is definitely taxed – and that they’re able to track crypto investments through various channels. Crypto is subject to Capital Gains Tax, and sometimes Income Tax. You’ll pay long-term Capital Gains Tax between 0% to 20% or you’ll pay short-term Capital Gains Tax or Income Tax between 10% to 37%, depending on your Income Tax bracket.

Let’s just cut to the chase with what you need to do to report your crypto tax by April 18.

1. Get a comprehensive view of all your crypto dealings, from every exchange – and the very beginning of your trading journey.
2. Aggregate your complete trading history into a single chronological record – and in US dollar terms.
3. Identify your capital gains and separate the total into long-term and short term gains.
4. Identify your income from crypto.
5. You can file once you know your totals.
6. File with your accountant or use tax apps like TurboTax and TaxAct.

Aggregate your transactions with Koinly

If you’re an active investor using multiple wallets, exchanges and blockchains, getting your complete crypto transaction history together is no quick job.

To do so manually, you’d have to download CSV files from every exchange, wallet and blockchain you use. Next, you will need to identify the transfers from your taxable transactions. Then, you’ll need to determine which tax you need for each transaction. Finally, you’ll need to calculate your capital gains and losses as well as any fair market value of any cryptocurrency income.

Koinly makes it easy to aggregate your transaction history. Koinly supports crypto investors with a fully IRS compliant tax reporting system. If you are looking for a solution, it is as easy as logging onto Koinly to connect all your wallets. Koinly supports more than 650 exchanges, wallets and blockchains – all you need to do is connect via API or by importing a CSV file of your transaction history. Let’s see how.

Among Koinly’s supported exchanges are Binance, Coinbase, FTX, Kraken, and KuCoin. You can use the API to automatically obtain your transaction data. You can create an API key by going to your exchange. This key is usually found under API management or Settings.

Once you’ve created your key, copy your API key and API secret and head over to Koinly. Click on the exchange that you wish to add. Next, click the auto-sync button and enter your API details. Your transaction data from the exchange will automatically be imported into Koinly.

If you need assistance connecting Koinly to a specific exchange, wallet or blockchain – don’t panic, Koinly have done the digging for you. The Koinly integration pages provide step-by-step instructions on how to connect with Koinly.

Convert crypto values into US Dollars

Once you’ve got all your exchanges, wallets and blockchains connected with Koinly, it does the complex work of converting all your crypto into fiat currency terms. This saves you time searching for historical crypto price data from price aggregator sites.

Koinly determines the market price of your transaction through a number of different methods. It will first use data from your transactions history to determine the market price. For example, if you bought ETH using USD on a given day, Koinly will set this as the market price.

If you bought crypto using a different fiat currency to your base currency in Koinly, Koinly will use Forex rates for the day of your transaction to identify the market price.

Finally, for transactions that don’t involve any fiat currency – like income or crypto to crypto trades – Koinly uses market price aggregators like CoinMarketCap or CoinGecko to identify the market price for your crypto. If you have used API, Koinly can also fetch market rates from certain exchanges.

After Koinly has converted everything to dollars, it can now calculate crypto taxes.

Calculate Capital Gains and Income from crypto

Koinly can help by identifying your taxable transactions from your non-taxable transactions, calculating your capital gains and losses, as well as any crypto income for you.

For capital gains – Koinly will identify each time you’ve sold, traded or spent crypto and calculate your subsequent capital gain or loss for you. You can be sure that you aren’t paying too much tax because it separates your short-term capital gain from your long-term gains.

For mining, staking, and interest income – Koinly identifies the fair market value of any crypto income in USD on the day you received it. You can separate this information in your crypto tax reports, or break it down into different income types if necessary.

When tax season rolls around, DeFi is a particular challenge for investors, but not with Koinly. Koinly supports a variety of web wallets that interact with DeFi protocols. This means you can use Koinly to provide liquidity on Uniswap, or stake CAKE on PancakeSwap – Koinly has it all. Koinly is constantly evolving, just like the DeFi market. We’re always adding support to new protocols and tokens.

Now that your crypto taxes have been calculated, there’s just one step left… creating an IRS-compliant report.

File your crypto taxes

Koinly has the report you need, no matter how you choose to file.

Filing yourself

Though it’s probably too late to file with paper forms unless you have an extension – we’ll cover it anyway.

You’ll need to report each disposal of crypto (any time you sold, traded or spent crypto) on IRS Form 8949, as well as your net capital gain and loss on Schedule D. Koinly provides this exact form, pre-filled with your transactions.

You’ll also need to report your crypto income on Schedule 1, generally under the ‘other income’ section – although if you’re self-employed this would go on Schedule C instead. Koinly can also help you with this. Download the Complete Tax Report and Income Tax Report. This will show all of your crypto income in USD and add it to your forms.

After completing your additional forms, fill out your Form 1040 and attach your Schedule D, Form 8949 and Schedule 1 (or C) and you’re done!

Filing with an accountant

Do you have an accountant on hand? Koinly makes it so much easier for them!

It is possible to grant access to Koinly to your accountant. Log in to your Koinly account and go to settings. Then, invite your accountant, CPA, or tax agent. You can then log in to your Koinly account, go to settings, then team and invite your accountant, CPA or tax agent. They will be able view your Koinly account as well as do your crypto taxes.

Filing with a tax app

Are you filing with a tax app like TurboTax or TaxAct? Koinly also has the ability to generate reports for these apps.

For TurboTax, just download the TurboTax Online or Desktop Report from Koinly (depending on the version of TurboTax you’re using) and then upload this to TurboTax when you’re filing your investments and savings. Add the income figure from your Koinly Complete tax Report (or Income tax Report) to miscellaneous income if you have income.

For TaxAct, you’ll download your Form 8949 and Schedule D from Koinly (as well as your Complete Tax Report or Income Tax Report if you have any crypto income). This can be uploaded to TaxAct for filing capital gains. You can also report any crypto income as income in TaxAct.

If you’re racing to get your taxes done, sign up to Koinly today!

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Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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