TurboTax Now Offers Cryptocurrency Tax Services
Cryptocurrency exchange users will now be able to have their taxes done instantly as TurboTax announced on January 4, 2019, that they will be partnering with CoinsTax to offer this service.
Paying Their Dues
It would seem that on a daily basis, progress is made in getting a framework set up for cryptocurrency taxation. In late 2018, Ohio became the first US state to accept cryptocurrency as tax and it seems New Hampshire might be catching up.
In the private sector, more resources are being set up to help crypto users and traders pay taxes on their cryptocurrency earnings, even as the IRS seems to be stalling of releasing new regulations.
On January 4, 2019, TurboTax, a tax preparation software based in the United States announced that is has partnered with CoinsTax to offer tax calculation and compilation services to customers, making them one of the first major online tax resources to cater to the crypto community. This comes at a convenient time as ‘tax season’ has just started in the US and as such, there will be a spike in crypto users needing such services.
This new service is available to customers who purchased a minimum of a 2018 premiere plan. The service works by importing transactions from major exchanges such as Coinbase, Gemini, and Poloniex. When the transactions are downloaded, they are then processed and the gains, losses and tax obligations are calculated and uploaded into Form 1040 Schedule D.
Colin Mackie, CEO of CoinsTax said:
“We are working with TurboTax Online to make filing crypto taxes much easier. Until now, tax preparation software has provided limited cryptocurrency support. The new Cryptocurrency section in TurboTax Online with its import from Bitcoin. Tax will save everyone a lot of time,”
This is a much-needed service as lawmakers have urged the IRS to compile more comprehensive tax regulation for cryptocurrency tax users. TurboTax will make use of CoinsTax’s infrastructure to make this process possible. CoinsTax also owns BitcoinTax, an application that helps crypto users calculate capital gains tax on cryptocurrency.
In January 2019, TurboTax joined forces with CoinBase to allow CoinBase users to calculate their crypto tax obligations directly from their exchange profiles. This helps the crypto users save precious time and money in the determining of their tax requirements.