Polygon is more than just a cryptocurrency, it is also a blockchain scaling platform. It is potentially a profitable investment for long-term investors. But be aware if you’re investing in Polygon - long or short term - you will likely have to declare your trading activity on your next tax return. Tax authorities treat cryptocurrency like a commodity and it may be subject to Capital Gains Tax or Income Tax. Not sure where to start? Our comprehensive tax guide will help get you on your way.
How to prepare Polygon taxes
Have you been trading with Polygon? If you’ve been actively investing, it’s important to understand how your cryptocurrency income should be included in your tax return. If you’ve made money trading, your local tax authority will want to know the details of your capital gains and income. Most local tax authorities are clamping down on crypto tax evasion, so it is important to understand your tax obligations. The first thing you will need to get started is your Polygon transaction history.
How to download Polygon transaction history
There are two ways you can retrieve your Polygon trading and transaction history. You can either:
- Connect a tax calculator to Polygon via API. If you use the Polygon tax reporting API with a crypto tax app - all your Polygon transaction history will be automatically imported to your chosen app. This is by far the easiest option. Check out our Polygon integration page for full instructions.
- Export your Polygon transaction history as a CSV file. The wallet you use to interact with MATIC may have a CSV export option, or you may be able to use a Polygon blockchain explorer to export a CSV file. You can use this file to calculate your crypto taxes yourself, or upload it to a crypto tax calculator.
Does Polygon provide a tax report?
No, Polygon doesn't provide a tax report. You can use your Polygon transaction history to calculate your crypto taxes and create a crypto tax report.
Does Polygon supply a financial statement?
No, Polygon doesn't supply a financial statement. But it is possible to use your Polygon transaction history to create a financial statement to use for tax purposes.
Polygon CSV export
Precisely how to get your Polygon CSV export will depend on the Polygon wallet you're using. If your MATIC wallet has a CSV export option - the easiest way to get your Polygon CSV file is via your wallet. We have instructions on how to do this for many wallets.
Alternatively, if your MATIC wallet doesn't have a CSV export option, you can use a blockchain explorer to get your CSV file.
Polygon tax API
The easier way to get your Polygon taxes done is with crypto tax software. Using a crypto tax tool, you can just enter your Polygon public address and your transaction history will be automatically returned via API. You'll need to do this for each wallet you use to interact with MATIC.
Does Polygon provide an end-of-year statement?
No, Polygon does not provide an end-of-year statement. You'll need to use your transaction history instead.
Does Polygon report to the IRS?
No, Polygon does not report to the IRS. But keep in mind, while Polygon does not directly report to the IRS, that doesn’t mean that you are not obliged to report your crypto trading income or losses yourself. The IRS classifies cryptocurrency as intangible property for tax purposes, which means the profits you make from trading are subject to capital gains taxes.
Remember it’s important to keep up to date with crypto tax regulations. And even if Polygon doesn’t report to the IRS that doesn’t mean the exchange or wallet you're using to interact with MATIC doesn't.
Does Polygon report to other tax authorities?
As with the IRS, Polygon does not directly report to any other tax authorities, but the exchange or wallet you use to interact with MATIC may well do. Again, it is your responsibility to be aware of your local tax authorities' stance on crypto taxation.
How to generate a Polygon tax report
There are two ways to generate a Polygon tax statement, either by using a crypto tax app or by calculating your crypto taxes yourself. While doing it yourself might seem like a good idea, you might find yourself quickly overwhelmed by tax calculations. You will be required to calculate whether you made a capital gain or loss from selling, trading, spending, or gifting crypto for every transaction you have made. It also includes any additional income from crypto investments - like through mining, staking, or airdrops. If you have a low activity volume, this might be feasible. However, if you have been particularly active, it could be quite a time-consuming task.
Your best bet is to save yourself time and use a crypto tax app like Koinly. Just use the Polygon tax report API and your crypto tax app will calculate your Polygon taxes for you and generate a pre-filled tax report based on your location - for example, the IRS Form 8949 and Schedule D or the ATO myTax report.
Koinly is the perfect Polygon tax calculator tool! Not only does Koinly import Polygon transaction history, but it also automatically calculates your Polygon taxes in a format that makes sense for your country’s tax office. Koinly helps you with a bunch of impressive tasks that save you time and can even save you from paying too much taxes.
Here’s a quick look at what Koinly can do for you:
- Import all your trades including purchases, sales, swaps, and rewards.
- Convert your transactions into your country’s currency at fair market value (this in itself is a massive time saver).
- Decipher which of your trades are taxable and which are not.
- Help you submit a clean and accurate report to your tax office.