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Three Tax Forms Crypto Users Must File With the IRS

Shehan Chandrasekera, CPA

Mar 29, 2022 • 1 MIN READ

If you transacted in cryptocurrency & NFTs during 2021, these are the three tax forms you should file before April 18, 2022:

1) Form 8949 (Sales and Other Dispositions of Capital Assets)

Form 8949 is used to report your cryptocurrency & NFT capital gains and losses. The IRS uses information reported on this form to calculate your capital gains taxes.

To accurately fill out this form, you need to keep detailed records of the cost basis (how much you paid for each coin), the market value of the coin at the time of sale, and how long you held each coin. This is an extremely tedious task to do manually. You can use CoinTracker to automate this process. Once you connect your exchanges and wallets to CoinTracker, you can generate Form 8949 with all your cryptocurrency transactions.

2) Schedule D (Capital Gains and Losses)

Schedule D summarizes what you reported on Form 8949. You can also generate this form on CoinTracker.

3) Schedule 1 (Additional Income and Adjustments to Income)

Schedule 1, Line 8 (Other Income) is used to report ordinary income coming from airdrops, forks, and staking income.

Last but not least, don’t forget to answer the crypto question ‒ “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?” ‒ on Form 1040.

If you have any questions or comments about crypto taxes let us know on Twitter @CoinTracker.

CoinTracker integrates with 300+ cryptocurrency exchanges, 8,000+ blockchains, and makes crypto tax calculations and portfolio tracking simple.

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.


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