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March 26, 2023
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Filing Crypto Taxes

  • March 26, 2023
  • 1 reply
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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

Best answer by Kat11_2

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? 

 

 

 

 

1 reply

Kat11_2
Alumni - Champ
Kat11_2Alumni - ChampAnswer
Alumni - Champ
March 26, 2023

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? 

 

 

 

 

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
March 26, 2023

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

Thank you