Tax returns (or extensions) are due in less than two weeks, but cryptocurrency investors will likely be pushing that deadline to the very end. New data released by CoinTracker today shows that 96% of cryptocurrency investors had not filed their tax returns as of March 27, 2022. Americans overall, in contrast, have filed roughly 40% of the individual returns expected to be filed in 2022.
The culprit? Confusion about how to file crypto and NFT taxes. The average CoinTracker user, for example, has crypto transactions in three exchanges or wallets, and 3 out of 4 have added more than one exchange or wallet in the last 12 months. Using multiple exchanges and wallets increases tax complexity for crypto investors.
One solution? CoinTracker. Our service enables you to seamlessly track your entire crypto portfolio across exchanges and wallets, helping you monitor market value, investment performance, transactions, and taxes as you transact with cryptocurrency.
A nationwide survey of U.S. cryptocurrency investors we commissioned from Wakefield Research found that given a list of possible cryptocurrency situations that require paying income tax, just 3 percent got all answers correct, leaving 97 percent with at least one wrong answer. For example, a majority don’t realize they need to pay taxes when trading one type of cryptocurrency for another or when using cryptocurrency to buy a good or service.
Surveys like this underscore the importance of ongoing education so that crypto users can file taxes more accurately and seamlessly, and save time and money. If you need to get up to speed quickly on how to file your crypto taxes, we have plenty of resources for you, including recently-published blogs a three-step guide to filing your crypto and NFT taxes and the rundown of which three tax forms you’re going to need to fill out. Or you might want to know how much tax you owe on a $69 million purchase of an NFT.
Other key findings from the survey include:
About the Survey
The CoinTracker Survey was conducted by Wakefield Research among 100 U.S. cryptocurrency investors between March 16th and March 27th, 2022, using an email invitation and a custom online survey.
Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 9.8 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.
CoinTracker is the market leader in cryptocurrency portfolio tracking and tax compliance, applying the best technology and partnerships to deliver the highest level of accuracy, simplicity and year-round value. Users collectively track over 3 percent of the entire global cryptocurrency market cap (currently north of $50 billion). Founded in 2017, CoinTracker is backed by Accel, General Catalyst, Initialized Capital, Y Combinator, 776 Ventures, and other leading investors. CoinTracker is the exclusive cryptocurrency tax partner for many of the top exchanges and tax products, including Coinbase, OpenSea, Intuit’s TurboTax, Blockchain.com, Bittrex, and Phantom. For more information, please visit https://www.cointracker.io.