Do you pay taxes on Binance.US? Binance launched Binance.US to serve residents of the United States amid Binance being restricted in the country. Binance.US enables crypto trading with over 100 pairs and staking while having pro features and support for institutions.
Let’s discover what taxes you have to pay for trading or staking on Binance.US, how to report your Binance.US trades, the crypto tax forms needed, and how CoinTracking can help you track your Binance.US gains by CSV and API importing.
How to do your Binance.US taxes?
You need to determine your crypto gains/losses from Binance trading and declare them on Form 8949 and your income tax return to do your Binance.US taxes. If you receive staking rewards, you also need to report them on your tax return and as ordinary income.
Do you pay taxes for trading or earning on Binance.US?
Yes, if you trade crypto on Binance.US or earn crypto staking rewards, you’ll have to pay taxes in the US. The IRS has determined that cryptocurrency should be taxed as property. As a result, crypto-to-crypto and crypto-to-FIAT trades are taxable events, while earning crypto income (e.g., airdrops, hard forks, crypto interest, crypto staking rewards) is also taxable.
On Binance.US, you can trade over 100 crypto pairs, including crypto-to-crypto and crypto-to-FIAT trades, besides being able to generate crypto interest (up to 18.00% APY) from staking several digital assets (e.g., BNB, SOL, AVAX, ATOM).
Let’s explore how crypto trades on Binance.US are taxed and the taxes around crypto staking.
Do you pay taxes from trading crypto on Binance.US?
Yes, if you trade cryptocurrencies on Binance.US, you’ll be subject to capital gains taxes, depending on your holding period. If you earn crypto staking rewards on Binance.US, you’ll be taxed at the ordinary income level.
If you buy crypto with FIAT (e.g., USD) and hold it, you won’t be taxed in the US. However, every time you dispose of any cryptocurrency you hold, you’ll be subject to capital gains taxes in the US.
Your capital gains tax will depend on your holding period and income tax bracket. If you held your sold crypto for more than 12 months, you would have a long-term capital gains tax rate ranging from 0% to 20%. If you held it for 12 months or less, you would have a short-term capital gains tax rate ranging from 10% to 37%.
As a result, if you trade any of the 100+ crypto pairs that Binance.US offers, you’ll be subject to capital gains taxes. Check how to calculate your gains and report them from a crypto-to-crypto trade.
Do you pay taxes from staking crypto on Binance.US?
If you stake crypto on Binance.US, you’ll be subject to income taxes on those staking rewards.
On Binance.US, you can stake multiple digital assets - BNB, SOL, AVAX, ATOM, GRT, LPT, and AUDIO - and earn interest ranging from 4.5% to 18% APY.
By staking your tokens, you lock them to support the network and receive rewards in the form of more tokens. When you receive those rewards, you’ll need to determine their Fair Market Value (in USD) and report it as income.
Every time you receive crypto staking rewards, you need to determine and report their FMV in USD as income. By the end of the tax year, you can sum up all the FMVs from crypto staking rewards, and they will be taxed at your ordinary-income tax rate.
Does Binance.US provide tax documents?
Yes, as per the Binance.US website, the exchange issues forms 1099-MISC to “report rewards/ fees income from Staking Rewards, Learn and Earn, Referral Programs, and other such programs if a customer has earned $600 or more in a tax year.”
Does Binance.US give tax documents?
When you earn more than $600 from crypto staking, Learn and Earn, Referral Programs, or other programs, Binance provides a Form 1099-MISC. Beyond that, you, as a US resident, must report your Binance.US taxes, depending on your crypto activity.
How do I report Binance.US trades?
You can track and report your Binance.US trades by importing them into a crypto portfolio tracker or tax software like CoinTracking. You can export all of your trades from Binance.US and then import them into CoinTracking by using CSV reports, or you can use API for automatic import.
Here’s how to import your Binance.US trades into CoinTracking by CSV
Login to your Binance.US account and click on “Wallet,” located in the navigation bar at the top of the screen
Click the Export Statement button on the right side of the screen
On the confirmation screen that pops up, choose Yearly Report and select the desired year
Next, click “Generate” to export your statement. Once the statement is generated, you will receive a notification via email
Upload the CSV file to CoinTracking Binance.US CSV import page
Here’s how to import your Binance.US trades into CoinTracking by API
Hover the account icon (top right corner) and select API Management
Enter a label for your API key and click on “Create”
Copy the “API Key” and the “Secret Key”
Paste it to the CoinTracking Binance.US API import page and select “Save this Binance US job”
Please check the importing restrictions set by Binance.
If you need help, check how to import crypto trades into CoinTracking:
How to report your Binance.US taxes?
When you track your Binance.US trades by using crypto tax software, you can determine the gains/loss on each trade and generate reports to file your Binance.US taxes.
Here’s how to report your Binance.US taxes:
Import your Binance.US trades into a crypto tax software
Import your crypto staking rewards from Binance.US into a crypto tax software
Determine the gain/loss on each trade by using the crypto tax software
Calculate the Fair Market Value of each batch of crypto staking rewards you received
Generate tax reports with all of your gains/losses depending on their holding period and add your crypto income (e.g., staking)
Use a tax service to file your tax return if you don’t want to or don’t know how to do it yourself.
Are Binance.US and Binance the same?
Binance.US and Binance are owned by the same company. However, Binance US was created to serve US customers, while Binance is restricted to US residents. If you’re in the US, you can trade and earn crypto staking rewards on Binance US but not on Binance.com.
The best Binance.US tax software: CoinTracking
The best crypto tax software in the market for Binance.US trades is CoinTracking.
You can import your trades using CSV or API, track your gains/losses, and generate tax reports according to your preferred accounting method.
CoinTracking is your full crypto tax solution for:
DeFi and NFT support with our ETH+DEX importer.
25+ advanced reports, including which coins offer you a tax-free rate.
Automatic capital Gains, according to 12 accounting methods (e.g., FIFO, LIFO, HMRC, ACB), accepted worldwide.
Generating complete Tax Reports in your country.
Binance.US taxes with no errors: CoinTracking Full Service in the US.
CoinTracking also offers a Full Service for US traders. A crypto reconciliation tax expert from Polygon Advisory Group, a leading US crypto tax firm, will review your CoinTracking account, help fix any errors, and ensure you submit your crypto tax reports error-free.
Do you have any crypto tax questions? Check the best guides:
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This post is part of the Crypto Taxes AMA series. Follow our weekly AMAs on Twitter where our expert CPA, Sharon Yip answers your crypto tax questions. You can download 35+ AMA crypto tax reports for free.
Disclaimer: All the information provided above is for informational purposes only and should not be considered as professional investment, legal, or tax advice. You should conduct your own research or consult with a professional financial advisor when investing.