{"id":59299,"date":"2025-11-19T11:00:00","date_gmt":"2025-11-19T17:00:00","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=59299"},"modified":"2025-11-25T15:00:44","modified_gmt":"2025-11-25T21:00:44","slug":"cryptocurrency-and-your-taxes","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/income\/investments\/cryptocurrency-and-your-taxes\/","title":{"rendered":"Crypto taxes: What is cryptocurrency and how is it taxed?"},"content":{"rendered":"\n<p>While the cryptocurrency ecosystem has been around for more than a decade, it has soared in popularity in the last few years. Even if you recently invested in crypto, you may still be wondering, \u201cwhat is cryptocurrency exactly and how is crypto taxed?\u201d<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"240\" height=\"135\" src=\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2021\/12\/cryptocurrency-tax-thumbnail.jpg\" alt=\"Cryptocurrency taxes\" class=\"wp-image-59303\"\/><\/figure><\/div>\n\n\n<p>Whether you\u2019ve purchased cryptocurrency to diversify your portfolio and generate crypto capital gains or you just wanted to explore this newer investment type, it\u2019s useful to have a foundational understanding of what you\u2019re investing in.<\/p>\n\n\n\n<p>Additionally, it\u2019s important to understand key details about cryptocurrency tax, like crypto capital gains tax, crypto tax rate and the crypto tax forms\u2014before tax time arrives.<\/p>\n\n\n\n<p>In this article, we\u2019ll cover the basics of what cryptocurrency is, and what you need to know about cryptocurrency tax, including a breakdown of your crypto tax considerations by crypto transaction type.<\/p>\n\n\n\n<div class=\"wp-block-create-block-hrb-single-override-cta\" class=\"wp-block-create-block-hrb-single-override-cta\" style=\"background-color:#005d1f\"><div class=\"hrb-single-override-cta--image\" style=\"background-image:url(&quot;https:\/\/www.hrblock.com\/tax-center\/wp-content\/themes\/hrb_tic\/img\/on-laptop-at-desk-graphic.png&quot;);background-size:contain;background-position:center;background-repeat:no-repeat\"><\/div><div class=\"hrb-single-override-cta--copy #ffffff\"><h3 class=\"main-heading\">File with H&amp;R Block to get your max refund<\/h3><div class=\"quick-links-list-buttons\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.hrblock.com\/online-tax-filing\/\">File online<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.hrblock.com\/tax-offices\/?app_method=GENERAL_TAX_PREP_METHOD\">File with a tax pro<\/a><\/div>\n<\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What is cryptocurrency and how does it work?<\/h2>\n\n\n\n<p>A cryptocurrency is a digital or virtual currency that exists on multiple computer systems worldwide. Cryptocurrencies have no central storage, nor are they issued by any central authority. This sets cryptocurrency apart from other forms of investment. For some, that\u2019s the appeal of buying into cryptocurrency.<\/p>\n\n\n\n<p>This decentralization brings to light a few key aspects of virtual currency. For one, cryptocurrencies are designed to be tamperproof through the use of cryptography, which encodes transaction information between parties, ensuring that the data remains secure and unaltered during transmission, thereby maintaining the integrity and trustworthiness of the entire transaction process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Here\u2019s how cryptocurrency works<\/h3>\n\n\n\n<p>Cryptocurrency payment transactions are generally tracked on a platform called the \u201cblockchain.\u201d That leads us to a couple of terms that will be important for tax purposes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>On-chain transactions<\/strong>&nbsp;are transactions stored on the blockchain.<\/li>\n\n\n\n<li><strong>Off-chain transactions<\/strong>&nbsp;are transactions that are not stored on the blockchain<\/li>\n<\/ul>\n\n\n\n<p>Some examples of cryptocurrencies are Bitcoin, Litecoin, Ethereum, and Dogecoin to name a few.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How does cryptocurrency gain value?<\/h3>\n\n\n\n<p>Simply stated, it is a matter of supply and demand. As demand increases, the value of that currency will also increase. By contrast, if demand falls, the value will also decrease.<\/p>\n\n\n\n<p>That said, the value of your personal holdings can go up and down as supply and demand shift. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How do cryptocurrency transaction fees play into it?<\/h3>\n\n\n\n<p>While it\u2019s not likely to be your primary driver for your investment decisions, you should keep in mind that fees\u2014and taxes\u2014may impact your bottom line. The type of fees you pay will vary from one type of currency to another.<\/p>\n\n\n\n<p>And the tax implications? Well, that\u2019s where you can rely on H&amp;R Block to explain the essentials you should know about. Let\u2019s jump into it!<\/p>\n\n\n\n<p><strong><em>Need help filing your cryptocurrency taxes?<\/em><\/strong><em>&nbsp;No matter if you work with an&nbsp;<a href=\"https:\/\/www.hrblock.com\/tax-offices\/\">H&amp;R Block tax professional<\/a>&nbsp;or use&nbsp;<a href=\"https:\/\/www.hrblock.com\/online-tax-filing\/premium-online-tax-filing\/\">H&amp;R Block Online Premium<\/a>, we\u2019re here for you!<\/em><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-cryptocurrency-taxes\">Cryptocurrency taxes<\/h2>\n\n\n\n<p>Like other assets, crypto investments and digital assets may come with tax obligations. But, as we\u2019ve mentioned above, crypto has unique features that makes it stand apart from other investment types in the eyes of the Internal Revenue Service. You could say that crypto taxes follow their own beat. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Cryptocurrency vs. stocks<\/h2>\n\n\n\n<p>Sometimes it\u2019s easier to see what something is by comparing it to what it\u2019s not. For instance, let\u2019s compare the tax implications between stock assets and cryptocurrency. Review the table below to understand the key tax differences between cryptocurrency vs. stocks for individuals under current U.S. tax law.<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><strong>Factor<\/strong><\/td><td><strong>Stocks<\/strong><\/td><td><strong>Cryptocurrency<\/strong><\/td><\/tr><tr><td>Classification<\/td><td>Capital asset; covered security requiring stock brokers to report information to the IRS<\/td><td>Capital asset; covered security requiring digital asset brokers to report information to the IRS<\/td><\/tr><tr><td>Tax rate<\/td><td>Taxed as either a short-term or long-term capital gain depending on the holding period<\/td><td>Variable \u2013 can be taxed as a capital asset (investment) or wages (services received). &nbsp; <br>See the next section.<\/td><\/tr><tr><td>Taxpayer reporting requirements<\/td><td>Only required to report upon selling<\/td><td>Several activities require reporting beyond selling crypto. <br>See the next section.<\/td><\/tr><tr><td>Tax forms<\/td><td>Investment firms must report shares sold on Form 1099-B to the IRS and the taxpayer<\/td><td>Some exchanges may issue Forms 1099-K or 1099-B.* <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n\n\n*Read below to understand how a <a href=\"#new-law\">new law<\/a> will change cryptocurrency tax forms, including new Form 1099-DA, Digital Asset Proceeds From Broker Transactions.\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-is-cryptocurrency-taxed\">How is cryptocurrency taxed?<\/h2>\n\n\n\n<p>If ever there were a time to say, \u201cit depends\u201d\u2014this is it. Answering the question, \u201cDo you have to pay taxes on crypto?\u201d will depend largely on what you do with crypto assets. Below we break out the tax treatment for the following scenarios: buying, exchanging, gifting, getting paid with cryptocurrency and selling it.<\/p>\n\n\n\n<p>Before we begin, we should define a couple of terms:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Basis \u2013<\/strong> The amount of capital investment in a particular property for tax purposes.<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/investments\/is-your-capital-gain-short-or-long-term\/\">Long-term vs. short-term capital gains<\/a>&nbsp;\u2013<\/strong> When you sell a capital asset for more than what you purchased it for, it\u2019s called a capital gain. The type of gain is determined by how long you hold that asset. A short-term capital gain refers to the profits from assets you held for one year or less; while long-term capital gain refers to the profit from assets you held for over a year.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Buying crypto<\/h3>\n\n\n\n<p>Buying cryptocurrency is not a taxable event by itself, so there are no tax implications or cryptocurrency tax reporting requirements when you purchase crypto.&nbsp;However, for your records, you\u2019ll want to know your purchase price to avoid paying unnecessary taxes down the line. Here\u2019s where on-chain and off-chain transactions matter.<\/p>\n\n\n\n<p>If you purchase cryptocurrency, the basis of your crypto (i.e., the purchase price) is determined based on whether it\u2019s an on-chain transaction or an off-chain transaction.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>For an on-chain transaction<\/strong>, the exchange will be valued in U.S. dollars as of the time and day the transaction took place, based on the amount recorded on the block chain.<\/li>\n\n\n\n<li><strong>For an off-chain transaction<\/strong>, you must determine the fair market value at the time and date the transaction occurred as if it were recorded on the blockchain. You can use a cryptocurrency or blockchain explorer to determine this value, and it will be accepted by the IRS.<\/li>\n<\/ul>\n\n\n\n<p>If you don\u2019t know the published value, you will need to use the fair market value of the property or services exchanged to determine the value of the crypto you purchased. For example, if you exchanged $100 for cryptocurrency, the fair market value of the money you exchanged will determine the value of the crypto at $100 (i.e., your basis).<\/p>\n\n\n\n<p>Any cryptocurrency transaction fees you pay at the time of purchase can be added to your cost basis. When you eventually sell your crypto, this will reduce your taxable capital gain by the same amount (ultimately reducing the&nbsp;<a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/capital-gains-taxes\/\">capital gains tax<\/a>&nbsp;you pay).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Exchanging crypto for property<\/h3>\n\n\n\n<p>If you exchange cryptocurrency for property, you\u2019ll have immediate tax consequences in that tax year. You must subtract the fair market value of the property received from the basis of the crypto you exchanged. This will show you if you have a capital gain or loss.<\/p>\n\n\n\n<p>Here\u2019s an example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Anjali pays $10,000 for a certain amount of cryptocurrency and holds it for 10 months as it grows in value.<\/li>\n\n\n\n<li>She then exchanges the same amount of cryptocurrency to pay for a piece of land with a fair market value of $12,000 (unimproved land for tax purposes).<\/li>\n\n\n\n<li>The difference between $12,000 (the exchange price) and $10,000 (her basis) is a $2,000 short-term capital gain. (It\u2019s a short-term capital gain because she held the crypto for under a year.)&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Exchanging crypto for goods\/services<\/h3>\n\n\n\n<p>If you exchange cryptocurrency for goods or services, you\u2019ll be taxed on the fair market value of the full amount of cryptocurrency minus your cost basis. The person providing the services in exchange for cryptocurrency will be taxed on the fair market value of the cryptocurrency as if it were ordinary income.<\/p>\n\n\n\n<p><strong>Here\u2019s an example:<\/strong><\/p>\n\n\n\n<p>Zach pays Elias $50 worth of cryptocurrency to fix a computer. Elias does not own a computer repair business.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Elias will recognize $50 of ordinary income for the cryptocurrency he received.<\/li>\n\n\n\n<li>Zach purchased the cryptocurrency he paid to Elias for $20 as an investment four years back. Zach will recognize $30 of long-term capital gain.<\/li>\n<\/ul>\n\n\n\n<p><strong>Note:<\/strong> In addition to treating the amount as ordinary income, self-employed taxpayers will need to pay <a href=\"https:\/\/www.hrblock.com\/tax-center\/small-business\/self-employed\/self-employment-tax\/\">self-employment tax<\/a> on the amount of cryptocurrency received for goods\/services.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Gifting crypto<\/h3>\n\n\n\n<p>If you receive cryptocurrency as a gift, you won\u2019t have any immediate income tax consequences. You may also have the same basis and holding period as the person who gave it to you. Crypto gifts can be subject to&nbsp;<a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/other-income\/do-i-have-to-pay-taxes-on-a-gift\/\">gift tax<\/a>&nbsp;and generation skipping tax if the value is above the annual and lifetime exclusion amounts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Getting paid with crypto&nbsp;<\/h3>\n\n\n\n<p>If you are receiving your wages in cryptocurrency, your employer should treat the fair market value of the crypto you receive similarly to other wages. This means it will be subject to various taxes and withholdings, just like traditional wages. &nbsp;Specifically, the fair market value of the cryptocurrency you receive will be subject to Social Security tax, Medicare tax, Federal Unemployment Tax Act taxes, and federal income tax withholding. Depending on your state, the amount may also be subject to state tax rules.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Selling crypto<\/h3>\n\n\n\n<p>When you sell your cryptocurrency, you\u2019ll owe taxes on any capital gains that result from the sale. As mentioned above, a capital gain occurs when you sell an asset for more than you purchased it.&nbsp;<\/p>\n\n\n\n<p>You may be wondering if cryptocurrency fees are tax deductible. While there\u2019s not a specific deduction, any cryptocurrency transaction fees you pay when you sell your cryptocurrency can be subtracted from your proceed amount. But remember, the person purchasing the crypto from you will add the fees to the cost basis of the purchased crypto.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-do-taxes-operate-with-crypto-assets-can-you-give-an-example\">How do taxes operate with crypto assets, can you give an example?<\/h2>\n\n\n\n<p>Here\u2019s a crypto tax example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Carolina pays $15,000 for a certain amount of cryptocurrency and holds it for two-years as it grows in value.<\/li>\n\n\n\n<li>She then sells the same amount of her cryptocurrency for $17,000 and she incurs fees of $500. She can subtract the fees ($500) from her proceeds ($17,000), and the total value she received that has to be reported is $16,500.<\/li>\n\n\n\n<li>The difference between $16,500 and $15,000 (her basis) is a $1,500 long-term capital gain (It\u2019s a long-term capital gain because she held the crypto for over a year).&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-here-s-a-quick-breakdown-of-a-few-more-crypto-scenarios-you-may-encounter\">Here&#8217;s a quick breakdown of a few more crypto scenarios you may encounter:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Transferring crypto to yourself:<\/strong> Transferring crypto between wallets or accounts you own is not taxable.<\/li>\n\n\n\n<li><strong>Trading one crypto for another:<\/strong> If you make a crypto trade for another type of cryptocurrency, the IRS considers it a taxable event.<\/li>\n\n\n\n<li><strong>Mining crypto:<\/strong> If you earn cryptocurrency by mining it, it&#8217;s considered taxable income reported on <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/form-1099-nec\/\">Form 1099-NEC<\/a> at the fair market value on the day you received it.<\/li>\n\n\n\n<li><strong>Donating crypto:<\/strong> If you make a crypto donation to a qualified tax-exempt charity or non-profit and itemize your deductions, you may be able to claim a charitable deduction on your tax return. You can typically deduct the fair market value of your crypto at the time the donation was made, and you won&#8217;t have to pay <a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/investments\/how-to-figure-capital-gains-tax\/\">capital gains taxes<\/a>.<\/li>\n<\/ul>\n\n\n\n<a id=\"new-law\"><\/a>\n\n\n\n<h2 class=\"wp-block-heading\">What is the crypto tax rate?<\/h2>\n\n\n\n<p>The federal crypto tax rate is between 0% and 37% depending on how long you held the cryptocurrency and under what circumstances you received your cryptocurrency.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Ordinary income rates<\/strong> are between 10% and 37% depending on your income tax bracket.<\/li>\n\n\n\n<li><strong>Short-term capital gain rates<\/strong> are between 10% and 37% depending on your income tax bracket.<\/li>\n\n\n\n<li><strong>Long-term capital gain rates<\/strong> are between 0% and 20% depending on where your income level is in a special bracket for long-term capital gains*.<\/li>\n<\/ul>\n\n\n\n<p><em>* High-income earners may be subject to an additional 3.8% tax called the net investment income tax on both short- and long-term capital gains.<\/em><\/p>\n\n\n\n<p>Review details for your&nbsp;<a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-brackets-and-rates\/what-are-the-tax-brackets\/\">income tax bracket and rates<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Are crypto losses tax deductible?<\/h2>\n\n\n\n<p>While not tax deductible, cryptocurrency losses can be used to offset other capital gains. Learn more about offsetting taxable gains in our article on <a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/how-to-offset-capital-gains\/\">tax loss harvesting<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How does the Infrastructure Investment and Jobs Act affect cryptocurrency taxes?<\/h2>\n\n\n\n<p>In late 2021, the Infrastructure Investment and Jobs Act was signed into law, bringing significant changes to the tax reporting requirements for cryptocurrency transactions.&nbsp;<\/p>\n\n\n\n<p>According to the new rules, cryptocurrency exchanges will be required to send a tax form to both the IRS and to the taxpayer, detailing the sale of cryptocurrencies. This change aims to improve transparency and ensure proper tax compliance for cryptocurrency transactions.<\/p>\n\n\n\n<p>However, the implementation date for this new rule has been delayed. This new requirement to issue <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/form-1099-da\/\">Form 1099-DA<\/a> took effect beginning January 1, 2025 (for taxes filed in 2026).<\/p>\n\n\n\n<p>To see how crypto tax reporting works now, check out the next section.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to report cryptocurrency on taxes: Using crypto tax forms<\/h2>\n\n\n\n<p>To figure out how to report cryptocurrency on taxes, gather and refer to the tax forms sent to you and use them to complete your income tax return along with additional tax forms.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-forms-are-needed-for-crypto-taxes\">What forms are needed for crypto taxes? <\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Tax forms you might receive:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/form-1099-da\/\">Form 1099-DA<\/a><\/strong>: You may receive Form 1099-DA if you sold or exchanged digital assets.<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/what-is-form-1099-k\/\">Forms 1099-K<\/a> and <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/form-1099-b\/\">1099-B<\/a>:<\/strong>\u00a0Depending on your activity and the exchange you use, you may receive either Form 1099-K or Form 1099-B to report your crypto transactions.<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/form-1099-nec\/\">Forms 1099-NEC<\/a>:<\/strong> You may receive Form 1099-NEC if you are an independent contractor paid in cryptocurrency for performing services.<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/what-is-1099-misc-form\/\">Form 1099-MISC<\/a>:<\/strong> You may receive Form 1099-MISC reporting crypto rewards or staking rewards.<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/form-w2\/\">Forms W-2<\/a>:<\/strong> If your employer pays your wages in cryptocurrency, you will receive a <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/form-w2\/\">Form W-2<\/a>. \u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Tax forms you must complete:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Form 8949:<\/strong>&nbsp;You may need to complete Form 8949 to report any capital gains or capital losses. Be sure to use information from the Form 1099-B you received when completing Form 8949. If you receive a Form 1099-K, be sure to report both your basis, your gains and losses for your cryptocurrency transactions on Form 8949.<\/li>\n\n\n\n<li><strong>Form 1040:<\/strong><ul><li>If you did have capital gains or capital losses, you\u2019ll also record them on your Form 1040\/Schedule D.<\/li><\/ul><ul><li>If you received wages in cryptocurrency, you\u2019ll record that amount as wages on your Form 1040.<\/li><\/ul><ul><li>If you were paid for services in cryptocurrency as a contractor or self-employed individual, you\u2019ll record that amount as either other income on Sch 1 or income on Schedule C.<\/li><\/ul>\n<ul class=\"wp-block-list\">\n<li>Additionally, a checkbox on Form 1040 will require you to state yes or no to the following question: \u201cAt any time during 2025, did you (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or financial interest in a digital asset)?\u201d<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-s-nbsp-the-best-crypto-tax-service-available-nbsp-nbsp-nbsp\"><strong>What&#8217;s&nbsp;the best crypto tax service available?<\/strong><strong>&nbsp;&nbsp;&nbsp;<\/strong><\/h2>\n\n\n\n<p>If\u00a0you&#8217;re\u00a0looking for the best crypto tax service,\u00a0you&#8217;ll\u00a0want a tax preparation provider that offers features tailored to the intricacies of digital assets.\u00a0The exact factors may vary from person to person such and the complexity of your situation. However, important\u00a0capabilities\u00a0include the ability to factor in your cost basis to help determine your gains and loss and populate your Form 8949. The program should offer resources help to guide you along the way. Of course, you\u2019ll also want to make sure there are safeguards to protect your data.<\/p>\n\n\n\n<p>Whether&nbsp;you\u2019re&nbsp;a casual investor or actively trading digital assets, Block&nbsp;offers the&nbsp;expertise&nbsp;you need to&nbsp;accurately report&nbsp;and handle the nuances of&nbsp;your&nbsp;crypto taxes.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-h-amp-r-block-online-offers-nbsp-nbsp\"><strong>H&amp;R Block Online offers:&nbsp;<\/strong>&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Easy to use integrations<\/strong>.\u00a0We support\u00a0integrations\u00a0with platforms like Coinbase and\u00a0CoinTracker, so your\u00a0data is imported in just a few steps.\u00a0<\/li>\n\n\n\n<li><strong>Seamless completion of Form\u00a08949.<\/strong>\u00a0We\u2019ll\u00a0complete Form 8949 for you, saving time and reducing errors.\u00a0<\/li>\n\n\n\n<li><strong>Enterprise-grade security.<\/strong>\u00a0Your data is protected with\u00a0multiple layers of security to help keep you safe.\u00a0\u00a0<\/li>\n\n\n\n<li><strong>Educational content and step-by-step tips.\u00a0<\/strong>Our platform includes\u00a0in-app\u00a0help\u00a0to guide you through\u00a0reporting your crypto transactions and the rest of your return, so you can confidently\u00a0file your taxes.\u00a0\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<p>And, if&nbsp;you\u2019re&nbsp;working with an H&amp;R Block tax pro,&nbsp;they\u2019ll&nbsp;prepare your return from start to finish\u2014making reporting your crypto&nbsp;easy.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Get help reporting crypto taxes from H&amp;R Block<\/h2>\n\n\n\n<p>Sound complicated? It can be, but that\u2019s why we\u2019re here.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Working with an H&amp;R Block tax pro:<\/strong> Our tax pros speak the tricky language of taxes and can help with your cryptocurrency tax reporting .&nbsp;<a href=\"https:\/\/www.hrblock.com\/tax-offices\/\">Find an H&amp;R Block tax pro<\/a>. &nbsp;<\/li>\n\n\n\n<li><strong>Filing your taxes on your own<\/strong>: If you\u2019re using&nbsp;<a href=\"https:\/\/www.hrblock.com\/online-tax-filing\/premium-online-tax-filing\/\">H&amp;R Block Online Premium<\/a>, we\u2019ll walk you through what you need to know. If you get stuck, help is just a few clicks away.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>While the cryptocurrency ecosystem has been around for more than a decade, it has soared in popularity in the last few years. Even if you recently invested in crypto, you may still be wondering, \u201cwhat is cryptocurrency exactly and how is crypto taxed?\u201d Whether you\u2019ve purchased cryptocurrency to diversify your portfolio and generate crypto capital [&hellip;]<\/p>\n","protected":false},"author":733,"featured_media":59302,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[24,47],"tags":[],"class_list":["post-59299","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income","category-investments"],"acf":[],"yoast_head":"<title>Understanding How Cryptocurrency Impacts Your Taxes | H&amp;R Block\u00ae<\/title>\n<meta name=\"description\" content=\"Learn what cryptocurrency investments mean for your taxes, how the IRS treats crypto assets, &amp; what a taxable event is with help from the experts at H&amp;R Block.\" \/>\n<meta name=\"robots\" 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