Step 3 in our 5 step process to completing your crypto tax profile requires you to upload any incoming or outgoing transactions that you have conducted outside of regular trading.
Examples of incoming transactions might include gifts received, mining payouts, or crypto income from a job. Examples of outgoing transactions might include gifts given, payments made to merchants, or network fees paid when moving coins between wallets.
This step can be especially important for those who receive crypto as income from any number of activities including mining, affiliate programs, or jobs that payout in crypto.
Cryptocurrency income is treated differently than crypto trading activity for tax purposes. Therefore, it's important to include this data so that you create an accurate tax profile.
CryptoTrader.Tax provides you with a final income report upon completion and purchase of your reports. This report can and should be used to help you calculate your total income taxes owed on the year.