TurboTax Integrates with Cryptocurrency Giant Coinbase for US Tax Filers
Coinbase customers who need to file taxes in the U.S. this year can get a boost from TurboTax, the tax-filing software offered by Intuit Consumer Tax Group.
The companies announced Tuesday that they were teaming up to allow Coinbase and Coinbase Pro clients upload their transactions, gains and losses in 2018 directly to TurboTax Premier, one of the tax firm’s products. Coinbase customers can upload as many as 100 transactions at once, according to a press statement from Coinbase.
The integration will work directly through Coinbase’s retail platform, or its Android and iOS apps, the exchange said.
TurboTax Premier will then help customers determine how to file their taxes from the last year. Any customers who need additional assistance can tap certified public accountants or enrolled agents at Intuit.
Intuit noted that “not every cryptocurrency transaction constitutes a taxable event, which is why we have tons of guidance to assist you in understanding and selecting which transactions are taxable while you are in TurboTax Premier.”
In particular, Intuit indicated that customers who converted cryptocurrencies to fiat, sold cryptocurrencies, spent it to pay for goods or services, or received free coins through a fork or airdrop will need to report that as income.
The list of transactions that are not taxable include customers who bought cryptocurrencies and have not yet sold, gifted cryptocurrencies (with each gift valuing less than $15,000 per recipient) or purchased cryptocurrencies with a Self-Directed IRA or Solo 401(k), the release continued.
In addition to working with TurboTax and CoinTracker, Coinbase noted that it was also launching a tax resource center and publishing a “Crypto and Bitcoin Taxes in the U.S.” guide for 2018 to help its customers understand any tax obligations they may have.
That being said, Coinbase noted that it “is not authorized to give tax advice,” and recommended that customers reach out to a tax professional for questions they may have about their specific situations.
However, to further help customers, Coinbase is integrating with CoinTracker, a Y Combinator-backed crypto and bitcoin tax software manager built by former Google employees.
CoinTracker said in its own release that it would help customers aggregate necessary transaction data across “all wallets and exchanges” that they may use, effectively summarizing all transaction activity for 2018.
In a statement, CoinTracker co-founder Chandan Lodha said his team believes an open financial system will improve the world, adding:
“We can’t have an open financial system if it is too difficult to use, or restricted to certain groups. Therefore, we have a simple mission: make cryptocurrency easier to use. We are starting by tackling cryptocurrency taxes.”
The company supports more than 2,500 cryptocurrencies and has automated integrations for 20 of the largest crypto exchanges by volume. The platform is also tracking more than $200 million in crypto assets, CoinTracker said.
In addition to CoinTracker, Intuit is also partnering with crypto tax startups Bitcoin.tax, BitTaxer, CryptoTrader.tax and TokenTax.co to further aid customers.
Brennan Snow, co-founder at BitTaxer, told CoinDesk that he hopes the partnership will help Americans claim losses from their crypto holdings, noting that “CreditKarma projected that of the $5.1b in BTC losses for Americans last year, only $1.7b will be claimed.”
This may be due to a lack of understanding, he said, a hole he hopes the integrations will solve.