#Turbotax desktop 2021 cryptocurrency software

It’s up to individual taxpayers to do research and understand how crypto exchange impacts their taxes.įor example, previous IRS guidance - issued in 2014 - clarified that virtual currency is treated as property for federal income tax purposes. capital loss and other topics related to crypto taxes. Maybe that’s because people are starting to learn more about cryptocurrency - which means they’ll need to learn more about fair market value, digital asset management, capital gain vs. This data highlights one more noteworthy point: Crypto rates increased across all age groups and filing statuses since 2020. Here’s a breakdown of the percentage of people who reported cryptocurrency transactions in 2021 based on age ranges and filing status: There were also differences depending on filing status. Those between 25 and 34 are more likely to have crypto sales transactions than any other age group in fact, 4.5% of single tax filers in this age group noted crypto on their tax return in the tax year 2021. Our experts will continue to monitor this gap and educate taxpayers about what types of crypto transactions are taxable - because cryptocurrency tax, capital gains tax and similar tax rate rules apply to virtual currency, which means every taxable event must be reported properly.Īnother interesting point illuminated by our research is that there’s a different percentage of cryptocurrency sales transactions depending on age group. Why is there a gap? It could be due to many reasons, such as the absence of taxable events to report. As our research uncovered, only 2.9% of filers reported taxable cryptocurrency transactions in the tax year 2021. Interestingly, however, that’s not the same number of people who reported a crypto transaction on their tax return. Top Trends in Crypto and Crypto TaxesĪccording to a Pew Research Center survey cited in our Tax Trends report, 16% of Americans say they’ve completed a cryptocurrency transaction.

Why do we do it? Simple: We’re trying to make tax data more accessible so that it can be applied toward tax education and decisions, making tax season more fun. Then, our experts crunched the numbers and extracted insights into finance, tax and economic trends - including virtual currency and crypto taxes.

#Turbotax desktop 2021 cryptocurrency software

population, rather than just those who use our tax software and other TurboTax solutions. We carefully took samples to ensure we got info that better reflected the general U.S. We gathered information from 16 million tax returns, all completed through TurboTax, and anonymized the data to protect our users. If you want to fully understand the value of our cryptocurrency tax trends, it’s important to double-check where and how we’re getting our data. View the entire TurboTax Tax Trends report here About Our Crypto Data