CoinTracker, a cryptocurrency tax filing software, has teamed up with US tax preparation firm H&R Block to make it easier for US customers to file their crypto taxes. With this integration, H&R Block customers can automatically import their crypto transactions from “most” exchanges into their H&R Block tax returns. This removes users’ need to enter their crypto trade data into each form field, which can be prone to errors, a report in Cointelegaph said.
Prior to this integration, individuals involved in cryptocurrency trading who wanted to file their taxes were required to complete Form 8949 manually. This form reports capital gains and losses from investments for tax purposes. However, the process of crypto tax filing is seen as a confusing and complex time for some crypto traders.
CoinTracker’s software is one of several crypto tax solutions that have been introduced in recent years. Other solutions include Koinly, Taxbit, CoinLedger, and TokenTax. Despite the availability of several crypto tax solutions, not all are integrated with tax preparation platforms such as H&R Block, TurboTax, and FreeTaxUSA.
In addition to the integration with H&R Block, CoinTracker provides free accounts to H&R users who have executed fewer than 25 crypto trades. and offering discounts to other H&R users. Due to the integration, the two companies intend to introduce additional enhancements for the 2023 tax season. The new partnership aims to make the crypto tax filing process easier and less complex.
Tax season can be particularly complicated for some crypto traders, as the Internal Revenue Service (IRS) has not clearly defined which firms fall under the definition of “brokers.” As per legal definitions, “crypto brokers” are obligated to furnish a Form 1099-B to each of their clients but decentralized finance protocols do not produce the required forms for their users. As a result, certain taxpayers have depended on blockchain explorers to ascertain their profits and losses.
CoinTracker COO Vera Tzoneva stated that the new integration with H&R Block should cut down on the hassle of paying crypto taxes. The company remains focused on delivering peace of mind and requisite tools for all crypto users. The partnership with H&R Block is a significant step towards realizing this vision.
As more and more people get involved in cryptocurrency trading, it is essential to have reliable and user-friendly tax reporting tools. By partnering with H&R Block, CoinTracker is making it easier for crypto traders to comply with tax regulations and ensure that they are accurately reporting their gains and losses.
This is crucial for individual traders and institutional investors, who must maintain accurate records of their cryptocurrency transactions for tax purposes. With this partnership, CoinTracker is helping to bring more transparency and clarity to the world of cryptocurrency taxation.
