In a recent Kraken survey, 84% of crypto holders surveyed expressed concern about tax laws that affect returns.
As tax season progresses, US crypto investors will need to be aware of their tax obligations. Kraken’s US Crypto Tax Guide 2025 provides all the information you need to comply when filing taxes for the 2024 tax year.
What you find in Kraken’s US Crypto Tax Guide 2025
To navigate the complexities of crypto taxation, Kraken has put together a comprehensive guide covering important topics that need to be understood before filing a tax.
1. How the IRS classifies ciphers
As far as the IRS is concerned, Crypto is not cash, it is property. This can lead to digital assets buying and selling, and even taxable events. This guide breaks down the difference between taxable transactions and tax-free so you can see what to report.
2. Capital gains vs. Income tax on crypto
Whether your code is subject to capital gains or regular income tax depends on how you earned it. This guide explains how a variety of activities are taxed, including trading, mining, and earning staking rewards.
3. Tracking and reporting crypto transactions
Maintaining accurate records is essential to calculating your tax obligations. The guide provides the following insights:
How to determine your cost base (original price of crypto) What happens when you sell, trade, or give away the tax impact of moving crypto between your wallet and exchange
4. General tax mistakes to avoid
Many crypto investors make avoidable mistakes, such as false reporting or overlooking taxable events. Our guide highlights these pitfalls and provides tips to ensure you submit correctly.
5. Tax Reporting Tools and Strategies
This guide also explores Crypto Tax Software and other tools that can help you automate calculations, generate reports, and facilitate tax submissions.
Why is this important?
The IRS treats cryptocurrencies like Bitcoin, Ethereum and even NFT as properties. This means that many transactions can have tax implications, whether they are trading, staking or receiving airdrops. It is more important than ever to understand how crypto is taxed, as not reporting these transactions correctly can lead to significant penalties.
As tax laws evolve, the US Crypto Tax Guide 2025 will help you understand your obligations, stay on the right side of the Crypto Tax Act, and minimize your tax burden.
Are you ready to dive deeper? Click below to advance your tax season before the April 15th deadline!
These materials are for general information purposes only and are not investment advice or recommendations or solicitations to purchase, sell, bet or hold CryptoAssets or engage in any particular trading strategy. Kraken does not work to raise or lower the prices of certain CryptoAssets that become available. Some crypto products and markets are regulated, while others are not regulated. Anyway, Kraken may or may not need to be registered or permitted to provide specific products and services in each market. It may also not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the CryptoAsset market can lead to losses of funds. Taxes may be paid for returns and/or increased value of crypto assets, and you must seek independent advice on your tax position. Geographical restrictions may apply. Please see this legal disclosure by jurisdiction.