Coinbase, the US-based digital asset exchange wrote in a blog post on Thursday about the confusion surrounding taxes in regards to cryptocurrency transactions.
The exchange noted that both their customers and the broader crypto community who are US taxpayers need clarity on the issue.
Therefore, they have taken some steps to streamline the tax experience for their customers.
Providing Better Resources and Education
The exchange wrote:
“We know that Coinbase customers (and the broader crypto community) have a lot of questions about whether they qualify for a 1099-K, why they might not qualify, and generally whether or not they owe taxes.”
On this issue, Coinbase has developed two resources for its customers.
It has launched a “Crypto and Bitcoin Taxes in the US, 2018 Edition” which will provide users a general education on cryptocurrencies and taxation for the past year. Users can find information about potential tax obligations with this resource.
It has also launched the “Tax Resource Center” which provides an improved Coinbase support experience for taxes this year.
New Collaborations to Further Help
Coinbase has teamed up with TurboTax which has added a new crypto tax section to its TurboTax Premier product.
Users can upload their transactions on the platform to check their gains and losses. As many as 100 Coinbase transactions can uploaded to the platform at once.
TurboTax will also provide an up to $20 discount to Coinbase customers.
Users will have to download their Coinbase transaction history first and then upload it to TurboTax to compute their liabilities.
The crypto import feature is available for Coinbase and its Android and iOS apps only. Coinbase Pro has been excluded from the service.
The new crypto feature will be available on several TurboTax products- TurboTax Premier, TurboTax Live Premier, TurboTax Self-Employed and TurboTax Self-Employed Live.
Coinbase has also partnered with CoinTracker. All Coinbase users including Coinbase Pro customers can make use of the new CoinTracker partnership, which makes it easy for users to summarize all of their transaction activity.
CoinTracker and TurboTax can also be used together.