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Coinbase Users Can Get US Tax Refunds In Crypto As Part Of Turbo Tax Deal

John Wanguba by John Wanguba
February 4, 2022
in Crypto news, Regulation
Reading Time: 2min read
Coinbase Users Can Get US Tax Refunds In Crypto As Part Of Turbo Tax Deal

Coinbase crypto exchange said that users may send the funds to their accounts in fiat, or automatically change it to cryptocurrency with no trading fees. Tax filing platform TurboTax is enabling US filers to get their refunds directly in crypto as of an arrangement with Coinbase crypto exchange.

In a February 3 blog post, Coinbase announced users who have filed their tax returns using TurboTax would have the chance to get any returns in cryptos like Bitcoin and others supported on the platform. This exchange said that the users can send the funds to their Coinbase accounts in fiat or automatically change it to cryptocurrency with no trading fees.

A New York Times report said that the offer from Coinbase was designed for both state and federal income taxes. Previously, the exchange has partnered with tax calculating platform CoinTracker to fill out the forms for the users to declare capital gains and losses on their returns.

The deadline for the United States residents to file taxes is April 18, and most platforms are increasing their offerings to navigate the essential forms to avoid any possible audits. Crypto tax compliance firm TaxBit said in January that it was launching a network of US-based cryptocurrency companies aimed at offering tax reporting data to users.

In the current US law, exchanging, buying, or selling cryptocurrency qualifies to be a taxable event, possibly subject to a 20% capital gains tax. HODLING assets for a whole year or more specifically exempts them from taxes.

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Tags: BusinessCoinbasecryptocrypto taxationcryptocurrencyIRSTaxesthe US

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