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

 

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