Your Crypto Tax Answers

Learn about crypto taxes in the US, Australia, and Germany with insights from professional crypto tax accountants while discovering the best crypto tools in the market.

Filed a crypto tax extension? Everything you need to know now

Have you filed for an extension on your taxes? Or are you still looking to file an extension?


No problem, we’ll guide you through the main points of filing a tax extension for 2021 and what you should focus on to take care of your crypto taxes for this year.


What is the deadline to pay taxes in 2022?


Tax day in the US for 2022 was April 18th. What does it mean? You had to file and pay taxes for 2021 by April 18th, 2022. After this deadline, you can still pay and file for taxes, but you will be subject to penalties and interest if you have a tax balance due.


When filing your taxes, you need to include all your taxable activities that occurred in the previous year, including crypto operations, from trading to earning crypto income.


Can I get an extension to pay my taxes?


You could apply for a federal tax extension until April 18th, which would let you extend the deadline for filing your taxes until October 17th, 2022. Some states have a different tax filing deadline, usually later than the federal deadline. Please check the specific deadline for your state.


You can still file and pay your taxes after the filing deadline without an extension, but you will be subject to late filing and late payment penalties every month that you delay.


Is there a penalty for not filing an extension?


Yes. After April 18th, 2022, you are subject to a 5% late filing penalty for each month or part of a month that you are late on filing your tax return, with a cap of 25% in total if you have a tax balance due.


In addition, if you didn’t pay all your taxes by April 18th, you will be subject to a 0.5% late payment penalty for each month or part of a month that you are late in paying your taxes, regardless of whether you filed an extension or not.


How long is an extension for taxes?


The IRS allows an extension for up to six months. If you filed a tax extension on or before April 18th, 2022, you would have extended your tax return filing deadline to October 17th, 2022.


Can you file an extension after the deadline?


No, you can only file for an extension until tax day (usually April 15th, but April 18th in 2022). You can still file your tax return after that date, but you will be subject to penalties and interest if you have a tax balance due.


What’s the latest I can file my taxes?


If you have filed an extension, you have six months after the original tax filing deadline to file your return (October 17th, 2022) without any late filing penalty. If you didn’t file an extension by tax day, you could file your tax return any time you want. However, you will be subject to both late filing and late payment penalties if you have a tax balance due.


I filed a tax extension. What do I need to do now for my crypto taxes?


Now that you have filed a tax extension, you still need to report all the crypto gains/losses and crypto income you earned in the previous tax year. We recommend that you seek help from a qualified crypto tax accountant if you are not sure how to do your crypto tax calculation.


Let’s see how crypto is taxed differently.


How is crypto taxed in the US? How much crypto do you have to report on taxes?


If you trade crypto for FIAT or another cryptocurrency, it is taxed at the capital gains level. If you have a crypto gain, you’ll get taxed at a long or short-term capital gains tax rate, according to the holding period of the crypto that you sold.


If you held your crypto for no more than 12 months before selling it, you would be subject to the short-term capital gains tax rate, which is the same as your ordinary income tax rate. If you held your crypto for longer than 12 months, you would be subject to a long-term capital gains tax rate, ranging from 0% to 20%.


If you trade NFTs, Metaverse tokens, DeFi tokens, or any crypto on centralized or decentralized exchanges, you’ll be taxed at the capital gains level as well.


How is crypto income taxed?


Receiving income in crypto from salaries, airdrops, hard forks, interest vehicles, or staking is taxed at the ordinary income level.


You’ll have to determine the Fair Market Value (FMV) of the crypto you received at the time you received it, measured in USD. You will need to report your total non-crypto and crypto income on your tax return, and your tax rate will be determined based on the tax bracket that applies to your situation according to various factors such as filing status and total taxable income amount.


How do you report crypto taxes?


In the US, you need to report your crypto gains/losses and crypto income that you generate each year. All of your capital gains/losses will need to be reported on Form 8949 and Schedule D of your Form 1040.


If you have crypto income from salaries, airdrops, or hard forks, you’ll need to report their FMV (in USD) as ordinary income in different parts of your income tax return. Learn more about crypto tax reporting.


The easiest way to determine and generate a tax report for your crypto gains/losses and your crypto income is by using a crypto tax software like CoinTracking.


By importing your crypto transactions into CoinTracking, you can get your gains/losses automatically calculated. The software can also help you determine the FMV of your crypto income and more!


The best crypto tax software: CoinTracking


The best crypto tax software in the market 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:

Moreover, CoinTracking can easily classify all your earnings from yield farming, liquidity pools, crypto staking, and much more.


Crypto 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:

  1. Do you pay taxes on crypto margin trading?

  2. How are rebase token protocols taxed?

  3. Do you pay taxes on fan tokens?

  4. What happens if you don't file your crypto taxes?

  5. Do you pay taxes when trading stablecoins?

  6. How is Yield Farming Taxed?

  7. DeFi Taxes: The Complete Guide.

  8. How to save taxes with a Bitcoin IRA.

  9. Do you pay taxes for receiving Bitcoin tips?

  10. Uniswap Taxes Guide

  11. Is wrapping crypto taxable?

  12. How to calculate taxes with Bitcoin dollar-cost averaging?

  13. Do you pay tax on stolen, hacked, or lost crypto?

  14. FIFO for crypto taxes? Implications of accounting methods.

  15. NFT Taxes: The Complete Guide.

  16. Is Bitcoin taxable? The ultimate guide for 2021 taxes.

  17. Top crypto tax friendly countries.

  18. How to reduce your crypto taxes?

  19. Crypto tax loss harvesting: Here’s what you need to know

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.