A Guide To IRS Tax Forms

What Is an IRS 1099-MISC Form?

For U.S. taxpayers, the IRS requires companies that make certain types of payments to provide the recipient of such payments and the IRS with a 1099-MISC. This form provides information for a wide range of income payments such as crypto interest, referral bonuses, and other income. If you’ve earned $600 or more this year in crypto interest or bonuses, the 1099-MISC will be made available by the platform that issued the payments by January 31, 2021.

What do I do with the 1099-MISC form?

You are responsible for reporting the income on the 1099-MISC when filing your tax return. TaxBit supports all variations of 1099’s in cryptocurrency. Login to your TaxBit account, link your exchanges and wallets to seamlessly pull your transactions and run the appropriate calculations, and auto-generate your tax forms for the 2020 tax year.

What Is an IRS 1099-B Form? What It Means.

The US tax form 1099-B provides transactional information detailing capital gains and losses from disposing of capital assets. At this time, cryptocurrency is classified as property. The information on Form 1099-B helps you fill out Schedule D and Form 8949.

When you sell something for more than it cost you to acquire it, the profit is a capital gain and may be taxable. On the other hand, if you sell something for less than you paid for it, then you may have a capital loss, which you might be able to use to reduce your taxable capital gains.

• You pay taxes on capital gains with your income tax return, using Schedule D.

• The information on Form 1099-B helps you fill out your IRS 8949, which should be reported on Schedule D of your tax return.

TaxBit supports all variations of 1099’s in cryptocurrency. Login to your TaxBit account, link your exchanges and wallets to seamlessly pull your transactions and run the appropriate calculations, and auto-generate your tax forms for the 2020 tax year.

What Is an IRS 8949 Form?

When you sell/trade cryptocurrency for a profit or loss, the IRS requires the details of the transaction to be reported on Form 8949, “Sales and Other Dispositions of Capital Assets”.

Form 1099-B summarizes the information that should be included on your IRS 8949. Your Form 1099-B will detail each asset you sell throughout the year. This form reports your cost basis, when available, for the assets you bought and sold on the platform.

TaxBit calculates the cost basis and corresponding gains or losses on every transaction. TaxBit, simplifies tax reporting by generating Form 8949 for you, which will reconcile to your Form 1099-B.

Calculating taxes on cryptocurrency is complex and time-consuming. TaxBit has made it easy by automating the entire process. Link your exchanges and wallets to seamlessly pull your transactions through their tax engine and auto-generate your tax forms.

What does TaxBit Do?

Calculating taxes on cryptocurrency is complex and time-consuming. TaxBit has made it easy by automating the entire process. Link your exchanges and wallets to seamlessly pull your transactions through their tax engine and auto-generate your tax forms. After syncing your transactions, just click to download completed forms. Built by CPAs, tax attorneys and developers, TaxBit calculates the cost basis and corresponding gains or losses on every transaction. You receive a full-audit trail so that users, accountants, and auditors can drill down into any transaction to see exactly how the gain or loss was calculated. From here, you can then download your required IRS 8949 tax forms from within your account!

Aside from automating your taxes, TaxBit provides crypto enthusiasts real-time portfolio tracking and tax optimization visibility so that you can make tax optimized crypto trades throughout the year. If you are looking to stay IRS compliant, have real-time portfolio visibility, and save money on cryptocurrency taxes then TaxBit is the platform for you. If you don't yet have a TaxBit account, get started with a 15-day free trial.