The growth of cryptocurrency/bitcoin investments has exploded in recent years. According to our TurboTax Tax Trends Report, 2.9% of tax filers reported crypto transactions in tax year 2021 and 4.5% in the 25 to 34 age group reported crypto transactions in tax year 2021.
Although interest in cryptocurrency continues to grow and the IRS has issued guidance on virtual currency, new investors still have questions about what to do with it and how it is taxed.
If you are new to the cryptocurrency/bitcoin investing world, you may have questions we often hear like, “How is my cryptocurrency taxed?”, “How are my profits/losses taxed?”, or “How much is the tax on my cryptocurrency/bitcoin sales?”
If you have these questions don’t worry, we have you covered. Check out our free Cryptocurrency Tax Interactive Calculator, that in just one screen, will answer your burning questions about your cryptocurrency/bitcoin sales and give you an estimate of how much your sales will be taxed and much more. To help you with your tax planning for tax year 2023 you can also find out if you have a capital gain or loss and compare your potential tax outcome of a short term versus long term capital gain, whether you already sold or you are considering selling. Our free Cryptocurrency Tax Interactive Calculator will help you estimate your taxes whether you received your cryptocurrency through purchase, as a payment for services, or in exchange for goods.
At tax time, TurboTax Premium will guide you through your cryptocurrency transactions, allow you to import up to 20,000 cryptocurrency transactions at once, and figure out your gains and losses. You can meet with a TurboTax Live Full Service Premium tax expert who specializes in crypto, who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind.
*Note, our Cryptocurrency Tax Interactive Calculator is for estimation purposes only and allows you to get an estimate on one sales transaction at a time.