A Small Survey Shows that US Crypto Investors Have Big Problems with Taxes

Cryptocurrency Investing Tax Trading USA

Author

Jaroslaw Adamowski

Author

Jaroslaw Adamowski

Author Profile

Share

Copied

Last updated: 

June 26, 2023

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Amid the looming April 18 tax filing deadline in the US, as much as 96% of surveyed crypto investors had not filed their tax returns as of March 27, and 74% want more information on how to file taxes from their crypto exchanges, according to a small survey commissioned by crypto portfolio tracking and tax compliance specialist CoinTracker. 

Carried out by Wakefield Research, the survey of only 100 US crypto investors surveyed this past March indicates that, with regards to calculating taxes on their crypto-related activities, 84% of respondents are not completely confident they have the necessary know-how, CoinTracker said. The collected data is testimony to the widespread confusion surrounding crypto taxes.

Given a list of possible crypto-related situations that require paying income tax, a mere 3% of respondents got all answers correct, and 97% had at least one wrong answer. Among others, 58% do not realize they should pay taxes when trading one type of cryptoasset for another, and 64% ignore the same applies when using crypto to purchase a good or service. 

This knowledge gap can lead taxpayers to inaccurately file tax returns, and potentially result in crypto investors paying excessive or insufficient taxes, the company said. 

Among others, 40% of the surveyed crypto owners do not know paying taxes is required for selling crypto for fiat currency. A further 48% do not know that selling or trading a non-fungible token (NFT) is a taxable event, the firm said.
____
Learn more: 
– Walking the Crypto Tax Tightrope in US
– How to Shield Your Crypto Gains and Avoid Getting Audited for Your Crypto Trades in US

– US Proposed Unrealized Gains Tax May Become ‘Penalty for Being Successful’ in Crypto
– Crypto Tax Trends in 2022: Increased Reporting, Updated Rules, and a Wealth Tax Debate