Michelle Legge
By Michelle LeggeHead of Crypto Tax Education
Updated Jan 31, 2025
This article has been fact checked and reviewed as per our editorial policy.

How To Do Your FreeTaxUSA Crypto Taxes in 2025

If you have crypto, the IRS wants to know by the April 15 deadline. Follow our step-by-step guide on how to use FreeTaxUSA to report your crypto in 2025.

What is FreeTaxUSA?

FreeTaxUSA is an online tax filing service that offers free federal tax filing and low-cost state filing, typically around $14.99. It supports various tax situations, including W-2 income, self-employment, and investments - including crypto.

Users can file directly with the IRS and upgrade to the Deluxe version for additional support. While it is a budget-friendly option, it lacks live tax expert assistance and has limited audit support. It is best suited for individuals comfortable with DIY tax preparation or on a budget, but it’s becoming increasingly popular as investors move away from lobbyist businesses and solutions such as Intuit.

Read next: Crypto Taxes Guide

Does FreeTaxUSA do crypto?

Yes and no. Investors can report gains and losses, as well as income, from crypto within FreeTaxUSA - but they’ll need to do the calculations either themselves or with crypto tax software (like Koinly!) in order to have the figures to report.

If you’ve used Koinly to calculate your crypto taxes and you’re wondering how to report crypto on FreeTax USA - we’ve got you covered with step-by-step instructions on how to file.

How to report crypto on FreeTaxUSA

You’ve got two options for reporting your crypto with FreeTaxUSA - and it all depends on whether you have a 1099-B form from your exchange or not, so let’s look at both.

If you have a 1099-B…

If you have a 1099-B form from your exchange, you may be able to use this to file - but a word of warning first. Your 1099-B may not be accurate.

We go into great detail about this in our crypto 1099 forms guide, but in short, because exchanges can’t track cost basis between different platforms - your 1099-B form may be incorrect and you could end up paying far more in tax than you should on your sales. To attempt to address this the IRS has created Form 1099-DA, but many of the same problems will remain unless different exchanges and wallets can come up with a solution to track cost basis across platforms. 

If you’re certain your 1099-B form is correct (for example, if you’ve only bought and sold crypto on one platform exclusively), you can use your 1099-B form to file your crypto on FreeTaxUSA by:

  1. Go to the Income tab

  2. Under common income, select investments and savings

  3. Select continue

  4. Select add investment

  5. Select crypto, NFT sales

  6. Enter the wallet or exchange you received your 1099-B form from

  7. You can then choose to enter your disposals (sales/trades) one by one or as a summary. If you only have a few sales, the former is more likely suitable. For investors with a lot of sales, the latter is the easier option. 

  8. Fill out your sales or summary as it pertains to you from the information in your 1099-B form

  9. Select save and continue

If you don’t have a 1099-B form, if it’s inaccurate, or if you’ve used multiple exchanges and wallets, you’ll need to use a crypto tax calculator to generate your Form 8949 and file differently. Here’s how.

How to report crypto on FreeTaxUSA with Koinly

To start, make sure you’ve got your Form 8949 and Schedule D form downloaded from Koinly and ready to use while filing.

  1. Go to the Income tab

  2. Under common income, select investments and savings

  3. Select continue

  4. Select add investment

  5. Select crypto, NFT sales

  6. Select save and continue

  7. On the page, ‘What wallet or exchange do you want to enter sales for?’ use the name of the crypto tax calculator you used - for example, Koinly.

  8. Select save and continue

  9. Select ‘I need to enter a crypto 8949’

  10. Select summary then save and continue. Please note, if you have both short-term and long-term gains and losses, you’ll need to do this twice.

  11. Select A to F as it pertains to your circumstances

  12. Enter your total short/long-term proceeds. If you’ve used Koinly, you’ll find this figure in your schedule D in column D.

  13. Enter your total short/long-term cost basis. If you’ve used Koinly, you’ll find this figure in your schedule D in column D.

  14. Fill out the other sections as they pertain to your circumstances

  15. Select save and continue

  16. Answer the question ‘do you have adjustments to make to this investment sale?’ as it pertains to your circumstances

  17. Select save and continue

  18. You’re done reporting your crypto! Remember, you’ll need to attach your Form 8949 and Schedule to your FreeTaxUSA form before you submit your completed return

If you have income from crypto - for example, staking or mining rewards - you’ll need to report this too. Here’s how.

  1. Go to the Income tab, then select other income under uncommon income

  2. Answer yes to the question ‘Did you have any ordinary digital asset income?’

  3. Enter a total figure for your digital asset income. If you used Koinly, you can find this in your tax summary or in the Complete Tax Report.

  4. Answer any other questions as they pertain to your circumstances

  5. Select save and continue

Please note, that if you received a 1099-MISC in relation to crypto income from an exchange, you may need to report this differently to avoid reporting duplicate income.

A banner with the Koinly Logo inviting crypto investors to Calculate Your Crypto Taxes with Koinly, a crypto tax calculator

Disclaimer
The information on this website is for general information only. It should not be taken as constituting professional advice from Koinly. Koinly is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances. Koinly is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.