How to File Your Crypto Taxes in 2025: A Step-By-Step Guide for US Investors

Key Takeaways

• The deadline to file 2024 crypto taxes is April 15, 2025, unless an extension is requested.
• Holding or transferring crypto between personal wallets is not taxable, but selling, trading, or earning crypto triggers tax events.
• Report all gains, losses, and income using Form 8949, Schedule D, and Form 1040.
• Use crypto tax software like CoinTracker or Koinly to simplify calculations and avoid errors.

Deadlines for Filing 2024 Crypto Taxes

👉 Check the latest IRS updates here

Note: An extension to file does not extend the payment deadline. Taxes owed must be paid by April 15 to avoid penalties.

Taxable vs. Non-Taxable Crypto Transactions

Taxable Events

• Selling crypto for fiat currency.
• Trading one crypto for another.
• Spending crypto on goods/services.
• Earning crypto through staking, mining, or airdrops.

Non-Taxable Events

• Transferring between personal wallets.
• Holding crypto without selling.
• Donating to IRS-recognized charities.
• Gifting up to $18,000 per recipient (2024 limit).

How to Calculate Crypto Gains and Losses

1. Determine Cost Basis: Purchase price + fees.
2. Identify Fair Market Value: Value at time of sale/trade.
3. Calculate Gain/Loss: Proceeds - Cost Basis.
4. Classify as Short-Term (<1 year) or Long-Term (>1 year).

Example:

• Bought 1 BTC for $30,000 (cost basis).
• Sold for $50,000 (proceeds).
• Gain: $20,000 (taxed as capital gains).

Step-by-Step Guide to Filing Crypto Taxes

Step 1: Gather Transaction Data

• Export records from exchanges/wallets.
• Use spreadsheets or tax software to organize data.

Step 2: Categorize Transactions

• Label as buys, sells, income, or transfers.

Step 3: Calculate Gains/Losses

• Use software to auto-generate Form 8949.

Step 4: Report on IRS Forms

• Form 8949: Detailed transactions.
• Schedule D: Summarize gains/losses.
• Form 1040: Includes crypto question.

👉 Get expert tax help

Common Crypto Tax Mistakes

• Mislabeling income (e.g., staking rewards as capital gains).
• Ignoring airdrops/hard forks.
• Missing wallet transfers.

Tip: Use tax software to avoid errors.

FAQs

Q: What if I don’t report crypto?

A: Penalties, audits, or fines from the IRS.

Q: Are NFTs taxable?

A: Yes, if sold or earned as income.

Q: Can I deduct crypto losses?

A: Yes, to offset capital gains.

Conclusion

• Track all transactions in 2024.
• File by April 15, 2025 (pay taxes by then).
• Use tools/software to simplify reporting.

Stay compliant and avoid IRS issues!