How do I connect my Paxful account to CoinTracker?
To add your Paxful transactions to CoinTracker:
Download the CSV export of your transactions from Paxful
Reformat those transactions into our CoinTracker CSV format (see our support guide here)
Import your CSV export to CoinTracker here
What is Paxful?
Paxful is a peer-to-peer (P2P) Bitcoin marketplace that allows users to buy, sell, and trade BTC directly with one another using over 300 payment methods — including bank transfers, PayPal, gift cards, and mobile payments. Unlike centralized exchanges, Paxful acts as an escrow and matching platform, providing a decentralized way for users to exchange fiat and Bitcoin globally.
Do I pay taxes on my Paxful transactions?
Yes. Even though Paxful is a peer-to-peer platform, all crypto trades are taxable. You must report any capital gains or losses from selling or swapping Bitcoin, as well as any income earned through trading profits, arbitrage, or referral rewards. The IRS and other tax authorities treat Bitcoin as property, meaning all disposals or exchanges are subject to tax reporting.
Does Paxful report to the IRS?
Paxful does not issue 1099 tax forms or automatically report user activity to the IRS. However, users are still responsible for accurately reporting their gains and income. Depending on your region, tax authorities may request information from Paxful or use blockchain analytics to trace P2P transactions.
Can the IRS see my Paxful transactions?
Yes, potentially. Paxful operates on the Bitcoin blockchain, which is public and transparent. Even though trades occur between peers, all transfers and wallet activity are recorded on-chain and can be analyzed by tax authorities or forensic tools. If you transfer funds between Paxful and a KYC exchange, those transactions can be linked to your identity.
Does Paxful have tax documents?
No. Paxful does not generate or issue tax forms such as 1099s. Users can, however, download their trade and transaction history from their account dashboard or connect their wallet address to CoinTracker to automatically import on-chain data for tax calculation.
How do I get tax forms from Paxful?
To create your tax forms, connect your Paxful account or wallet address to CoinTracker. CoinTracker will automatically import your Bitcoin transactions, calculate your capital gains, and generate Form 8949, Schedule D, or local equivalents to help you file your crypto taxes accurately.
How are peer-to-peer Bitcoin trades taxed on Paxful?
Every trade on Paxful that involves selling or exchanging Bitcoin is a taxable event.
Selling BTC for fiat: You must report any capital gain or loss based on your cost basis and the sale price.
Trading BTC for goods or services: This counts as a disposal, triggering a taxable gain or loss.
Earning BTC as payment or referral rewards: This is treated as income based on the fair market value of Bitcoin at the time received.