Tax filing platform TurboTax is allowing U.S. filers to get their refunds directly in crypto as part of an arrangement with crypto exchange Coinbase.
In a Thursday blog post, 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.
A New York Times report said that 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 deadline for U.S. 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 U.S.-based crypto firms aimed at providing tax reporting data to users.
Under current U.S. 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 keeps them exempt from taxes.
Source: Cointelegraph
