Cryptocurrency Tax Reporting Calculator
Calculate cryptocurrency capital gains and income tax for IRS reporting.
Crypto Income (Ordinary Income)
Total Crypto Income:$ 0.00Taxed at 24% ordinary rate
Capital Gains/Losses
| Crypto | Term | Days Held | Proceeds | Cost | Gain/Loss |
|---|---|---|---|---|---|
| Bitcoin | Long-Term | 430 | $ 30000.00 | $ 25000.00 | $ 5000.00 |
| Ethereum | Short-Term | 228 | $ 5400.00 | $ 1200.00 | $ 4200.00 |
Short-Term Gain:$ 4200.00
Long-Term Gain:$ 5000.00
Total Gain/Loss:$ 9200.00
Tax Summary
Short-Term Tax (24%):$ 1008.00
Long-Term Tax (15%):$ 750.00
Income Tax (24%):$ 0.00
Total Crypto Tax:$ 1758.00
Crypto Tax Reporting Rules
- Crypto is property, not currency - every sale/trade is taxable event
- Held over 1 year: long-term capital gains rates (0%, 15%, 20%)
- Held less than 1 year: short-term ordinary income rates
- Mining/staking: ordinary income at fair market value when received
- Airdrops/payments: ordinary income when you have dominion/control
- Form 8949 for capital gains, Schedule 1 for mining/staking income
IRS Reporting Requirements
- Form 8949: Report each crypto sale/trade transaction
- Schedule D: Summarize capital gains/losses from Form 8949
- Schedule 1 (Line 8z): Report mining/staking/airdrop income
- Schedule C: If mining is business activity (self-employment tax applies)
- Keep records: purchase date, price, sale date, proceeds, wallets used
- Question on Form 1040: "Did you receive, sell, exchange virtual currency?"