Filing Crypto Taxes

[Anonymous]

Can anyone tell me if it is necessary to file quarterly with the IRS if you trade in Cryptocurrency whether or not you have a loss or gain? Or can you wait until the end of the year for tax filing?

Thank You

[Kat · Accepted solution]

For any capital gains (crypto included), the IRS still uses the "pay as you go" system. This means that they expect payment on realized gains on a quarterly basis.  The gains are not REALIZED until you've sold the investment.  

It is safest to go ahead and file and pay quarterly estimated income taxes if you can.    

I'm linking you to a TurboTax FAQ that explains how to make estimated tax payments.

How do I make estimated tax payments? 

[Anonymous · Accepted solution]

I was thinking the same thing but wasn't sure. 

Thank you