You can also earn income related to cryptocurrency activities. This product feature is only available after you finish and file in a self-employed TurboTax product. Tax consequences don't result until you decide to sell or exchange the cryptocurrency.
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Like these assets, the money you gain from crypto is taxed at different rates, either as capital gains or as income, depending on how you got your crypto and. Yes, you'll pay tax on cryptocurrency gains and income in the US. The IRS is clear that crypto may be subject to Income Tax or Capital Gains Tax, depending on.
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Read MoreAdditional terms and limitations apply. Married filing jointly vs separately. The agency provided further guidance on how cryptocurrency should be reported and taxed in October for the first time since Tax tools. This includes 2. We will not represent you before the IRS or state tax authority or provide legal advice. Staying on top of these transactions is important for tax reporting purposes.