What are the steps to file taxes for cryptocurrency earnings online?

1 answers

• Dec 17, 2021 · 3 years ago
  As an expert in the field, I can provide you with a step-by-step guide on how to file taxes for your cryptocurrency earnings online. Here's what you need to do: 1. Gather all your cryptocurrency transaction records, including details of trades, purchases, and sales. 2. Determine the cost basis for each transaction. This is the value of the cryptocurrency at the time of acquisition. 3. Calculate your capital gains or losses for each transaction. This is the difference between the cost basis and the sale price. 4. Report your capital gains or losses on your tax return. Make sure to include any necessary forms, such as Form 8949. 5. File your tax return online or by mail, following the instructions provided by the IRS. 6. Keep a copy of your tax return and any supporting documents for your records. Remember, it's always a good idea to consult with a tax professional to ensure you're accurately reporting your cryptocurrency earnings and complying with tax regulations.
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