Tax questions for crypto gains in the USA

Hey everyone, I could use some guidance on when and how taxes are collected on profits from crypto trading or transactions. I’m pretty new to the crypto scene and I’ve made a few trades that ended up being profitable. I thought that the platform I used would report these earnings directly to the IRS, but I’ve heard that it’s still my duty as an individual to report these profits when I file my taxes next year. Is that right? I’d really appreciate any info on how tax collection works for US residents dealing with crypto.

I'm not from the U.S and I'm not sure which platform you're using (assuming that things could be different depending on which exchange you're using) but take a look at these articles from Coinbase[1][2]. they should give you a good idea of everything you want to know (taxable events, the forms to fill out, etc.) [1] https://www.coinbase.com/learn/your-crypto/tax-documents-explained [2] https://www.coinbase.com/learn/crypto-basics/understanding-crypto-taxes

I like people to be good citizens. To know about crypto tax: https://koinly.io/cryptocurrency-taxes/? To know about how to pay your tax: https://coinledger.io/blog/how-to-report-cryptocurrency-on-taxes If you read the second guide very well, you will know about what to do to pay your crypto tax. But read the first link very well too to know all about crypto tax in United States.

I know that in the USA there are licensed accountants who, under the contract, will make you tax returns. It is better to start with the help of professionals and study the articles of laws on your own in order to understand the numbers in the reports. A licensed accountant is liable for errors in tax reporting. Subsequent declarations can already be submitted independently if the services of an accountant are expensive for you.

First, you should not ask for tax advice in a multinational forum, ask a specialized expert or a lawyer, as failure to accurately report may expose you to a legal issue. Taxes are applied to Bitcoin and all cryptocurrencies according to  ---> https://www.irs.gov/pub/irs-drop/n-14-21.pdf and there is a page for frequently asked questions ---> https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions. In short, every sale that made a gain is taxable and there are no taxes as long as you don't sell. You can read some user experiences ----> https://www.reddit.com/r/bitcointaxes/

Dear op, i am not a US citizen but few days back i read an article related to the same query of yours. In which they taught how to pay taxes and on which thing (token, NFTs and security) you have to pay how much taxes. And how you have to register with IRS to pay taxes. Because tracking transactions and making them paying taxes is also a difficult task for the authorities. Let me share that article with you here: How to track and report crypto transactions for tax purposes At that time, i just gave it a mere glance because i knew this article is of no use to me as i am not a US citizen and in my region i have to pay no Taxes as our government has not implied any.

Thanks to all for the replies. My question really boils down this: does an exchange have the power to collect taxes or does that belong to a government only?  More details: when trying to withdrawal some profits from a transaction, the exchange said I must pay them for the capital gains.  It sounds shady to me, like a scam, as I thought only the IRS could actually collect taxes. Thanks again to the community.

SCAM. Anything that asks you to deposit first before you can withdraw is a scam. It simply doesn't make sense when they could just deduct the fee from your balance. Another thing, exchanges don't collect your taxes, the only ones who do are scammers. It's a common part of a scam scheme actually, for instance pig butchering scam: Lastly, when trying to withdraw your money off an exchange, you typically only need to pay for the withdrawal fee which should just be couple of bucks. There may be other service charge depending on the platform and the payment method you're using but overall total shouldn't be high - should stay near couple of bucks. And yes, the fee will be deducted on your account balance.

In Russia, there is such a practice as a tax agent. The broker keeps the money and pays this money to the tax from each profitable transaction at a rate of 13-15%. But this is only for exchanges, although derivatives or crypto funds may appear there. The trader does not need to worry about this. In the US, there is a capital gains tax, so you will have to fill out a declaration yourself or hire an accountant. But there are services on large crypto exchanges that help you fill out the declaration automatically. But these exchanges are not tax agents.

Thanks. Additional research led me to this conclusion, but I wanted -- and got -- the confirmation I was seeking.  Appreciate your time.

It is only scam. crypto exchange only reports your TAX file to the IRS and does not ask for taxes from you. Can you share with us the link to that exchnage, in addition to reporting it here ----> ReportFraud.ftc.gov It is better not to rely on articles on tax and legal data and to ask from available government sources or through an accredited lawyer. It is true that they provide good data, but in the end it is better to refer to government sources.[/list]

Well, many might have answered your query but what i think is exchanges do not cut taxes they only cut their fees because the tax rates are high and i never encountered high cuts on my transaction made via exchanges. And answer to your first query is also no, as exchanges cannot directly collect taxes on behalf of governments. Agreed and noted, but to be honest i do not find lawyers in my region cheap because i tend to avoid them in any case even if i have some severe emergency then i prefer to use only those who are near to my acquaintances. The point is, not everywhere we have the opportunity to ask from lawyers so to get a universal idea of how things should work. Then these articles came handy.

As a taxpayer, it is your responsibility to pay taxes to the government. If anyone other than the government asks you for tax payments, it is likely a scam. Exchanges do not have the authority to deduct taxes directly from you; instead, you are required to submit your tax returns to the government. However, exchanges are obligated to provide reports to the government upon request. Please note that these are general terms, and specific rules may apply in the United States or other jurisdictions.

And in the US, the tax does not give other organizations the function of a tax agent? In Russia, the income tax on wages at a rate of 13% is withheld by the employer and transfers this data to the tax office along with the payment. This is done so that ordinary citizens do not have problems with the law and they do not pay money to tax lawyers.