Even more crypto exchanges are starting to offer direct deposit features—further strides towards mainstream adoption of digital assets.
It’s no secret the cryptocurrency industry has made incredible strides toward mainstream adoption. One such stride is enabling the direct deposit of employee payroll in cryptocurrency.
Most recently, Coinbase announced its users will be able to deposit any percentage of their paycheck directly into their Coinbase account.
This percentage can be held in USD or transferred into any digital asset available on the exchange. Your employer will still report your employment income on Form W-2.
To be sure, there are unique tax implications for direct deposits converted to other assets—tracking income based on the fair market value on receipt, as well as tracking cost basis based on that value for subsequent dispositions.
TaxBit automates the tax complexities of cryptocurrency direct deposits, so traders can take advantage of these innovative product offerings.
We bring all of your cryptocurrency transactions and balances from your exchanges and wallets into one place. TaxBit runs those transactions through its TaxBit engine, and calculates the cost basis and corresponding gains or losses on every transaction.
If you’re concerned about the complexity and volume of crypto transactions, TaxBit can serve as a trusted source to provide insight into your tax liabilities throughout the year.
For additional information on crypto taxes, and more updates on the digital assets space, explore our resources:
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