Crypto and Taxes

[JRKT]

Hello, I started investing into crypto (doge) in 2020 and was never informed that you had to report your capital gains and losses until now. I just started using CryptoTrader.Tax and Koinly to calculate everything from every exchange/wallet that I've used in the past. I just received my 2021 tax returns for my employer's W-2, so I've already filed, my question is, is it too late to report my crypto information? Should I wait until next year's tax return to report everything? I was not informed about any of this or had that much knowledge regarding all of this before I invested into dogecoin, literally learning new things every day. Thanks.

[ErnieS0]

No. You should not wait until next year. The IRS requires you to report your income in the year you received it. You can't bunch income from multiple years together.

You do have three years from the filing date to amend a return. However, if you have untaxed capital gains, you will likely have interest and penalties adding up until you file. The sooner you amend your return, the better (but wait until the IRS accepts your return).

If you lost money, you could get an additional refund.

You should amend 2020 if you have any sales, withdrawals or exchanges during that year.

How to amend (change or correct) a return you already filed

[datdude]

I am using Koinly too, it gives a report that can be imported to turbotax. Found it to be fairly straightforward.