By
Steve Muchoki
April 25th, 2024
With the tax season to close by April 18, many crypto platforms have stepped up to help their users avoid tax issues.
Coinbase has announced that its customers will now be able to get their tax refunds automatically in their Coinbase accounts when they file with Turbot. The refunds will be made in USD. However, customers can either leave it in fiat or convert it to cryptocurrencies.
Users will also be able to choose from a varied asset class with both stable assets and yield assets available on the platform. They can also choose to spend it with their Coinbase Visa Card or save it there for future crypto purchases on the exchange.
Indeed, with the tax season underway, many customers will be looking to decide how to spend their tax refunds. While 62% of taxpayers in the US plan to save their tax refunds, the rest plan to spend the funds, according to The National Retail Federation.
According to the announcement, incoming tax refunds on Coinbase will not attract any extra fees. An earlier report by New York Times revealed that the offer applied to federal and state income taxes.
Coinbase Moves to Help Users
With the tax season to close by April 18, many crypto platforms have stepped up to help their users avoid tax issues.
Before this announcement, the exchange partnered with CoinTracker to allow its users to file their taxes easily. Users would be able to file their returns or loss for free or at a reduced rate depending on the volume of transactions.
Recall that all capital gains made from a crypto investment are now taxable under IRS rules. Only when you HODL assets for up to a year are you exempt from paying taxes.
Earlier in January, Crypto tax compliance company TaxBit announced the launch of a network of US cryptocurrency firms, the TaxBit network. The network included such companies as Coinbase, Gemini, Binance.US, and FTX US. It would provide tax reporting data to its users. It would also allow clients from select institutions to access 2021 crypto tax forms for free.
Commitment to Global Economic Freedom
Coinbase has shown a commitment to its mission of improving economic freedom globally. “Everyone deserves access to financial services that can help empower them to create a better life for themselves and their families.”
Its move in September was just one such step. The company announced that its US customers would now be able to deposit their entire paychecks (or part of it) in crypto or dollars at no extra cost.