TurboTax, the tax filing platform, is allowing US filers to get their refunds directly in crypto as part of an arrangement with crypto exchange Coinbase.
It has been reported that Coinbase announced users who filed their tax returns using TurboTax would have the option to receive any returns in cryptocurrencies like Bitcoin (BTC) and others supported on the platform. The exchange said users could send the funds to their Coinbase accounts in fiat, or automatically convert it to crypto with no trading fees.
However, the offer from Coinbase applied to both state and federal income taxes. The crypto exchange has previously partnered with tax calculating platform CoinTracker to fill out the forms for users to declare capital gains and losses on their returns.
The report said that the deadline for US residents to file taxes is April 18, and many platforms are stepping up offerings to navigate the necessary forms to avoid possible audits. Crypto tax compliance company TaxBit announced in January that it was launching a network of US-based crypto firms aimed at providing tax reporting data to users.
Thus, under current US law, exchanging, buying, or selling crypto qualifies as a taxable event, likely subject to a 20% capital gains tax. HODLing assets for an entire year or more essentially keep them exempt from taxes.