I asked the other day and people suggested those crypto tax software's and I tried some and it was a pain in the ass, I'm scared as shit, I'm only 18 and don't want the IRS up my ass. I've tried multiple ones like Koinly, TaxBit and like 3 other, They all have issues of either not being able to support all of my exchanges and also adding a csv files wont work cuz its half ass broken. Plus their are so many errors of 'Missing cost basis' UGHHHH. I fucking hate myself and shouldn't of gotten into crypto.
edit: also im busy with so much other things in life rn and i cant handle it anymore. I know I probably shouldn't rant but I love u guys, the patriot movement is filled with ppl of positivity so. thought id rant.
Bro, how much crypto did you sell? Unless it’s multiple thousands, relax
I was an idiot and bought some stablecoins earned some interest then sold back into fiat than bought stablecoins again because GUSD isnt on kucoin then I did a whole bunch shit with it and idk if I have to report all the gains, staking rewards, lending income and shit even though I didnt sell for fiat yet like I did the first half.
Don't stress, you can always estimate and file an extension.
Wait rly I can estimate and then file an extention? How does that work? So I just estimate it and then try to calculate it better then submit a more precise version some time in the near future.
Pretty much, read the instructions that come with the tax forms. They have extentions for that reason.
2)also is their someway I can be forgiven, because if I where to cashout I'd be in very little profit for the 2021 year
But to file an extension wouldn't it have to be a legitimate reason such as hospitalization or something that could prohibit u from doing taxes.
I used to own a buisness and I filed an extention ever year. Didnt need a reason I didn't even estimate how much I owed, so I would get a small fine evey year after I filed,for not sending a payment April 15. I would think about hiring a professional if they are complicated.
Things may have changed I don't know, I now just file the easy form.
Also do u know if I'm able to round off all of my gains, losses, recieved crypto gifts, staking income when I go fill out my 8949 and other forms? Because it's hard to add up everything precisely and considering theirs trading fees and gas fees everywhere.
You do not have to be exact. No one will come after you if you are not exact. People estimate all the time. Even tax accountants estimate all the time (I used to be one).
If you believe you need to file taxes, then personally, I would file an extension.
I don't know when it is going to happen, but the IRS is going down. It is an illegal operation. I am working on efforts to bring them down. I know many other people are as well. Once everyone learns the full truth of the situation (which I am working on) it will all collapse. I don't know how long that will take, so in the meantime I would file an extension.
If it comes down to you feeling like you have to file your taxes (legally you don't, but I can't promise they won't come after you if you don't), you can estimate there as well. Just do your best, but don't stress if its off. They don't care. I have filed thousands of tax returns. I have prepared people and businesses for audit. The IRS doesn't care about the small stuff.
My understanding is that crypto is considered like stocks,I would start researching it on the web,take notes and do some research over several days. If I write things down on paper I can remember it better than if I just read it.
You have plenty of time,so don't panic.
First, well done on investing in crypto. I’ve been in for five years and am in my 40s. It’s a significant piece of my investment portfolio. How I wish I knew this when I was 18. You’re ahead of the curve. Second, you need to know how many times you created a taxable event- using a coin to purchase another coin. If you used cash each time you purchased a coin, you shouldn’t have any taxable events. Third, the crypto tax softwares you listed suck. They all do. They’re not useful enough yet. Hopefully one day they will be. I used cointracker.io which has its own bugs to iron out. Plan on spending some time. I made a lot of moves this year so it took me almost ten hours. You can do it. It’s better than not filing the taxes, unfortunately. I hate taxes!
Did you get any crypto tax forms in the mail?
No 😭