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With time, Coinbase will provide customers access to learning material too on topics such as NFT tax filing in the form of written guides and instructions.
Amidst increasing IRS investigations into the crypto activity and falling crypto prices, Coinbase’s new announcement provides some relief to the digital currency owners. As part of their customer engagement activities, Coinbase discovered the complexities faced by their customer base when it comes to crypto taxes. To make the process less cumbersome, Coinbase released a new tax centre on its platform to display all taxable activity in one place in the form of a personalized tax summary.
How Will Coinbase’s New Features Help the Existing Customers?
Till now, customers manually tracked and sorted their crypto transactions including sales, payments, conversions and income. This was a highly time-consuming and complicated activity. However, with Coinbase’s new tax centre, customers can view their taxable activity instantly without going through the tedious and manual process of calculating crypto taxes. The information will be displayed under appropriate sections namely realized capital gains/losses and miscellaneous income.
Calculate your taxes at ease with your personal accountant or get some concessions while filing with platforms like TurboTax which is offering a $20 discount to Coinbase customers on its products. For customers who are one step advanced and have made use of Coinbase Pro or external crypto wallets and DeFi services, Coinbase will make sure they have access to tax reports for up to 3,000 transactions from their partner CoinTracker.
As per a report by Decrypt, Coinbase will issue the 1099-MISC IRS forms for earnings more than $600 received through fee income and rewards for the tax year 2021. Form 1099 is issued by banks and brokerage firms, and they provide details to the customer son earnings received from dividends and investments.
How Can Coinbase Customers Access the Latest Crypto Tax Relief Features?
If you are accessing your profile on the website, just click on your profile on the upper right-hand side, click on the drop-down and select ‘Taxes’. For app users, the new tax tool under the ‘Taxes’ section can be accessed by clicking on Profile and Settings under Menu in the upper left-hand corner. With time, customers will have access to learning material too on topics such as NFT tax filing in the form of written guides and instructions.
With the growing crypto ecosystem, comprising people, tools and technology, there has been a rise in government scrutiny too. While initially, the IRS sought crypto whales who were finding loopholes to avoid paying taxes, recently it has changed its strategy. The IRS is now targeting a larger group through new rules like asking crypto owners to fill out the common 1040 form. These new rules and regulations have in turn given rise to the crypto industry building new tax tools to make tax compliance easier.