The American tax season is an annual period between late January till around mid April. With the government shutdown temporarily suspended for three weeks, employees at the Internal Revenue Service (IRS) will soon be reporting to work to start this year’s tax return season. For many crypto traders, the process of cataloging and curating trades worth an entire year is a bit hectic. Coinbase has therefore made the process easier for its US clients to declare their earnings or losses from crypto trading, by integrating onto the famous tax preparation software known as TurboTax.
The team at Coinbase has announced a resource center to reduce the confusion many crypto traders have when filing taxes related to their crypto trading transactions. The exchange has gone on to clarify that Coinbase is required to provide a 1099-K form to any of its US clients who has engaged in at least 200 crypto transactions whose total value is equal or greater than $20,000. This amount varies from state to state in the US.