Is the April tax deadline looming and you need to get your Binance US taxes done fast? We’ve got everything you need to know about Binance US tax statements and reporting your crypto taxes to the IRS including transaction statements, trade exports, profit and loss calculations and more.
How to prepare Binance US taxes
The IRS wants to know about your taxable transactions on Binance US - so anytime you made a capital gain or loss by selling, trading or spending crypto, as well as any crypto income through staking, airdrops and so on. To get started with your Binance US tax, you need your complete Binance US transaction history.
How to download & export Binance US trading & transaction history
You’ll find your Binance US transaction history, unsurprisingly, in your Binance US account. There’s two ways you can get this:
- Use the Binance US API. Simply input your Binance US API keys into your chosen crypto tax calculator and your app will calculate your crypto taxes for you and generate the forms you need to report your crypto to the IRS.
- Export Binance US transaction history in a CSV file. Alternatively, download your Binance US transaction history as a CSV file and do your crypto taxes yourself (or upload your CSV file to your crypto tax app).
Does Binance US provide a tax report?
No, Binance US doesn’t provide a tax report. However, Binance US does issue 1099-MISC forms to some users.
Does Binance US issue 1099 forms?
Yes. Binance US issues a 1099-MISC form to any user with more than $600 in crypto income (like through staking or airdrops). You’ll normally receive your 1099-MISC form by February of the following tax year at the latest. Remember, whenever you get a 1099 form - the IRS gets an identical copy.
Previously, Binance US issued 1099-K forms to users with more than 200 transactions totaling more than $20,000 in value. The exchange has confirmed they will no longer be issuing 1099-K forms to users.
Does Binance US supply a financial statement?
Your Binance US transaction history can work as a financial statement for the year - it contains your complete transaction history on Binance US and you can use it to generate a Binance US tax statement for your annual tax return.
Binance US CSV exports
Need to get your Binance CSV export so you can calculate your crypto taxes for your annual tax return? It’s simple.
Log in to your Binance US account and find your profile icon in the top right corner. From the drop down menu, select settings and then select basic info.
On the new page, scroll down to find statements & history and select export statement.
You’ll need to select the year you want your Binance US CSV export to cover. Once you’ve done this, select generate.
Although you only need to report on a single financial year in your tax return - you’ll still need all your Binance US transaction history, for however long you’ve been using the account for. This is so you (or the crypto tax app you’re using) can calculate your cost basis and subsequent short-term and long-term capital gains and losses correctly.
Binance US API
If you’re using a crypto tax calculator like Koinly, instead of downloading multiple CSV files of your Binance US transaction history - it’s much easier to use the Binance US API.
To get your API keys from Binance US, log in to your account and go to the API management page (you can find this in the drop down menu under your profile icon). Now select create a new API.
You’ll need to edit the restrictions for your API key. A crypto tax calculator should only need read-only access - as it only wants to view your trades to identify which are taxable. So once you’ve made your tax API, select edit restrictions and uncheck enable spot and margin trading and enable withdrawals. You should also have unrestricted access for the IP access restrictions section.
Once you’ve edited your API key, simply copy and paste your API key and API secret and input them into your chosen crypto tax app.
Does Binance US provide an end of year statement?
You can download a Binance US statement that will cover a single financial year - so this can work as an EOFY statement. Follow the CSV steps above to do this.
Does Binance US report to the IRS?
Yes. Binance US reports to the IRS. Binance US shares customer data with the IRS every time they issue a 1099-MISC form to a user, as the IRS gets an identical copy.
As well as this, many larger crypto exchanges are being pressured by the IRS to share more customer data to ensure tax compliance. The best way to remain tax compliant with the IRS is to report your crypto taxes accurately.
How to generate a Binance US tax form
There’s two ways to create a Binance US tax form - though one is much easier than the other.
If you’re doing your crypto taxes yourself - the IRS wants to know about every single disposal of crypto (so any time you’ve sold, traded or spent crypto), including your cost basis, proceeds and capital gain/loss. You need to report this in Form 8949. You then also need to report your net capital gain and loss in Schedule D. As well as this, you need to report any income from crypto to the IRS in Schedule 1. You’ll then need to attach both of these to Form 1040 as part of your annual tax return.
It’s a lot of work if you’re an active crypto investor, so save yourself hours by using a crypto tax calculator. Once your crypto tax app has your Binance US transaction history, it will calculate your cost basis, identify any taxable transactions and subsequent gains or losses, as well as any crypto income. All you need to do is download the crypto tax report you need, when you need it.
If you’ve been wondering is Koinly a Binance US tax calculator tool, the answer is, yes! Not only can Koinly import Binance US transaction history, but Koinly can also calculate your Binance US taxes in a format that makes sense for the IRS. As a Binance US tax calculator, Koinly is able to do a bunch of impressive tasks that save you time and can even save you from paying too much taxes.
- Koinly will import all your Binance US trades including purchases, sales, swaps, income and more!
- Koinly will then convert your Binance US transactions into USD at fair market value. This in itself is a massive time saver.
- Finally, Koinly works out which of your Binance US trades are taxable, and which are not - calculating your Binance gains/losses, crypto income and more. All of this is really important for being able to submit an accurate annual tax return to the IRS.
Sign up free and try our Binance US tax software today.