CoinTracker's new integration with H&R Block is set to take the headache out of filing taxes.
One of the biggest pain points for crypto investors is filing taxes. A typical crypto trader can engage in hundreds of transactions a year.
The US Internal Revenue Service (IRS) classifies crypto as property for tax purposes. Therefore, each transaction can be applicable to capital tax gains.
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Over the years, various solutions have been created to track complex tax affairs. A leader in this field is CoinTracker, which tracks all of a user's crypto transactions. Its services are used in Canada, the United States, and Australia to prepare income tax reports.
To make things even easier, CoinTracker has integrated its platform with H&R Block, which will assist Americans in automatically generating crypto tax reports and filing Form 8949 for their crypto trading activity. The latter form reports capital gains and losses.
Before the integration, crypto investors had to manually transfer their data to the H&R Block app, which was prone to human error. Under the new integration, the process of importing transaction data from "most" crypto exchanges is automated.
When commenting on the integration, CoinTracker Chief Operating Officer (COO), Vera Tzoneva, said:
The process of crypto tax filing is far too complex. We remain fixated on delivering peace of mind and the requisite tools for all crypto users. Partnering with H&R Block is a major step toward realizing this vision.
Under the new integration, all H&R Block customers will receive a free CoinTracker account if they have made 25 crypto trades or less. Alternatively, they can opt for 10% off on the CoinTracker tax plans if they have over 25 crypto trades.
In other tax-related news, Biden’s administration considers implementing a 30% tax on crypto mining electricity usage.