Free Crypto Tax Calculator

Calculate Tax on Cryptocurrency

You can quickly create an extensive tax report with the help of cryptocurrency tax calculators like Coin Launch Space. Our calculator can assist if you’re trying to determine the overall tax impact of your crypto transactions across your whole portfolio. Wallets like MetaMask and hundreds of exchanges like Coinbase are directly connected to Coin Launch Space. All you have to do is link your accounts, and Coin Launch Space will compute your profits and losses from each transaction.

How Does Our Free Cryptocurrency Tax Calculator Work?

Are you curious about how our free crypto tax tool works? Let us address some commonly posed questions.

How Are Cryptocurrencies Subject to Taxes?

Cryptocurrency is considered property in the US and is thus liable to income and capital gains taxes. Depending on how much the price of your cryptocurrency has changed since you acquired it, you may experience a financial gain or loss when you sell it. Selling your cryptocurrency or exchanging it for another cryptocurrency are two examples of disposals. When you receive cryptocurrencies, the fair market value of the cryptocurrency at the time of receipt will be used to calculate your income. Airdrops, staking incentives, and mining rewards are a few types of cryptocurrency revenue. You can calculate the tax impact of your cryptocurrency using our free crypto tax tool.

How Are My Capital Gains Calculated?

Your capital gains are computed using the following formula by our free tool: Gain/Loss in Capital = Total Revenue – Cost Structure We’ll use the most recent federal and state tax rates for both long-term and short-term capital gains to estimate your tax liability once you’ve entered your capital gains and losses.

Do Fees Reduce My Tax Bill?

Charges directly associated with purchasing cryptocurrency may raise your cost basis or the price you pay to acquire it. Your gross earnings, or the money you get when you sell your cryptocurrency, may be decreased by fees directly associated with the transaction. Fees lower the overall amount of capital gain in either scenario.

Why Does My Yearly Income Matter?

The amount of tax you pay on cryptocurrency in the US varies based on your yearly income. In general, your tax obligation increases with your income.

Why Does My Ownership Duration Matter?

You will be responsible for paying the long-term capital gains rate, which varies from 0% to 20% if you sell your cryptocurrency after a year. If you sell your cryptocurrency before a year has passed, you will be required to pay the 10–37% short-term capital gains tax.

What Is the Filing Status?

The kind of tax papers you must file and how much your tax bill will depend on your filing status. You can include head of household, qualified widow(er), married filing jointly, married filing separately, and single as one of the five filing status options on your tax return.