Not all crypto exchanges are made equal when it comes to taxes - some make it far easier than others to get your crypto taxes done! Learn about the best crypto exchanges for US taxpayers.
Operation Hidden Treasure made one thing clear - the IRS is coming for investors avoiding their crypto taxes.
The IRS is sending out letters to crypto investors they believe to be avoiding their crypto taxes. As well as this, they’re putting pressure on crypto exchanges operating in the US to share KYC data to identify investors avoiding crypto tax. So far, they’ve won legal cases against Coinbase, Kraken and Poloniex - but it’s likely all major crypto exchanges are in the firing line.
All this to say - you need to pay your crypto taxes. Crypto is subject to Capital Gains Tax or Income Tax (you can learn more about how crypto is taxed in our US crypto tax guide).
The IRS wants you to report your crypto capital gains and losses in Form 8949 and Schedule D, as well as any additional income from crypto in Schedule 1 or Schedule C. You’ll need to report every single time you sold, traded or spent crypto, as well as give a detailed breakdown of any additional income.
Suffice to say it’s a lot of work, but some exchanges make this far easier than others. So when it comes to getting the information you need without any hassle - here are the best crypto exchanges to get your crypto taxes done.
Binance stopped operating in the US in 2019 due to the strict regulations around prediction contracts. It wasn’t all bad news - instead they launched Binance US to cater to American crypto investors. Binance US has fast become one of the largest crypto exchanges operating in the US. Like their global counterpart - Binance US makes it easy to get the information you need for your crypto taxes.
Binance US offers API integration with many crypto tax software companies - which you can easily set up from your Binance US account.
Alternatively, you can opt to download a CSV file of your Binance US transaction data instead. You can find this CSV file under basic info within your settings. You can only download one year worth of transaction data at a time - but if you’re uploading your file to crypto tax software, you’ll need your complete Binance transaction history for however long you’ve been using the account - so make sure to download multiple CSV files to cover this time period. This ensures you calculate your short and long-term capital gains accurately, so you pay the right amount in tax.
Learn more how to get started on your Binance US taxes with Koinly.
Does Binance US report to the IRS?
Yes. Binance US reports to the IRS.
Binance previously issued a 1099-K form to users with more than 200 transactions totaling more than $20,000 in value throughout a single financial year. When you receive a 1099-K form from a crypto exchange, the IRS gets a copy too.
However, in line with the new crypto tax reporting regulations pending from the IRS, Binance US has confirmed they will not be issuing 1099-K forms for users for the 2021 tax year and beyond.
If you’ve earned more than $600 in crypto income through a financial year - for example, through staking, learn and earn or Binance referral programs - you’ll be issued a 1099-MISC form. A copy of the 1099-MISC form is also sent to the IRS.
Coinbase is a huge global crypto exchange with millions of American users. The platform also offers Coinbase Pro - with a variety of more advanced trading features available for users. Coinbase is licensed to operate in the US, with the exception of the state of Hawaii.
If you need to do your crypto taxes - Coinbase makes it easy. It offers API integration with crypto tax apps, meaning you can automatically import your transaction data in mere minutes.
Alternatively, you can use CSV files to import your transaction data instead. To get your CSV file just head to privacy, under settings and request a data export. Your CSV file will get sent to the email address associated with your Coinbase account. If you’re using Coinbase Pro too, you’ll need to repeat these steps to get your Coinbase Pro CSV file.
Learn more about how to get started on your Coinbase taxes with Koinly.
Does Coinbase report to the IRS?
Yes. Coinbase reports to the IRS.
Coinbase sends a 1099-MISC to both the user and the IRS if you’ve earned more than $600 in crypto income throughout the financial year - for example through staking, rewards or airdrops.
Prior to the 2021 financial year, Coinbase also sent out a 1099-K to users and the IRS if a user had more than 200 transactions totaling $20,000 in value.
As well as this, Coinbase lost a John Doe summons to the IRS in 2016. This means Coinbase has to share KYC data with the IRS.
Kraken is one of the oldest crypto exchanges around - starting way back in 2011. The exchange has millions of US users enjoying low fees, quick trades and a variety of more advanced trading options.
Getting your crypto taxes done with Kraken is easy as they offer API integration with crypto tax apps, as well as an easy way to export a CSV file of your Kraken transaction history.
You’ll find your CSV file of your Kraken transaction history in your account under history - just select the ledgers option. When picking a date range - it’s important you include the entire time period you’ve been using your Kraken account so you can calculate your short and long-term capital gains accurately.
Learn more about how to get started on your Kraken taxes with Koinly.
Does Kraken report to the IRS?
Yes. Kraken reports to the IRS.
The IRS used a John Doe summons to legally compel Kraken to share KYC data with them to ensure tax compliance in the US.
As well as this, Kraken issues users with a variety of 1099 forms depending on their circumstances, including:
- 1099-MISC for users with more than $600 in crypto income.
- 1099-INT for users with interest income.
- 1099-NEC for non-employee compensation.
Whenever Kraken sends a user a 1099 form, an additional copy is sent to the IRS.
Gate.io is one of the top crypto exchanges worldwide in terms of daily trading volume. Though some of the services Gate.io provides are limited in the US - for example prediction contracts - the exchange remains a popular option for US crypto investors. The only US users Gate.io does not serve are residents of Washington and New York due to additional regulations.
Like the exchanges above - Gate.io makes it easy to get your crypto taxes done. You can use API integration to automatically sync your Gate.io transactions with your chosen crypto tax app. Just make sure when you create your API key in Gate.io you create an APIv4 key.
If you’d rather use a CSV file import - no problem. You just need your PurseLog file from Gate.io which you can find under billing details.
Learn more about how to get started on your Gate.io taxes with Koinly.
Does Gate.io report to the IRS?
It is likely that Gate.io reports to the IRS.
The IRS is putting pressure on all major crypto exchanges operating in the US to share KYC information and using legal means to compel them to where necessary. Gate.io hasn't yet been named by the IRS, but as they collect some KYC information in order to operate in the US, it is very likely that they have faced the same pressure as other large crypto exchanges.
Crypto.com offers users more than 100 cryptocurrencies, an NFT platform and a variety of unique products like credit cards and interest accounts. You can use Crypto.com in every US state and territory, excluding New York due to additional regulations.
Crypto.com offers API integration with crypto tax apps to get your crypto taxes done in a snap. However, the API only pulls through the past 6 months of transaction data - so for many users, you’re better off using the CSV file method instead.
You can get a CSV file of your Crypto.com transaction history on the spot wallet page. CSV files are limited to 6 months worth of data at a time, so you may need to download multiple CSV files to cover the entire period of time you’ve been using your Crypto.com account for. This ensures you can calculate your cost basis and short and long-term capital gains accurately.
If you’ve been using Crypto.com for margin trading - you’ll need a separate CSV file. You can find this file under the order history page.
Learn more about how to get started with your Crypto.com taxes with Koinly.
Does Crypto.com report to the IRS?
Yes. Crypto.com reports to the IRS.
Prior to the 2021 financial year, Crypto.com issued users with more than $20,000 in trading volume with a 1099-K form. A copy of this is also sent to the IRS.
Crypto.com haven’t yet confirmed whether they’ll continue to send out 1099-K forms, or whether they will switch to 1099-MISC forms like many other large crypto exchanges.
Gemini is popular with those new to crypto investments thanks to an easy to use interface and a great mobile app. Gemini is available for residents of all 50 US states and is headquartered in New York.
Gemini makes getting your crypto taxes done a breeze - offering API integration with all major crypto tax apps or CSV file export options.
You can find your Gemini transaction history on the balances page within your account. When you’re picking the date range for your CSV file - make sure to cover the entire time period you’ve been using your Gemini account in order to calculate your cost basis, short-term capital gains and long-term capital gains accurately.
Learn more about how to get started with your Gemini taxes with Koinly.
Does Gemini report to the IRS?
Yes. Gemini reports to the IRS.
Prior to the 2021 financial year, Gemini issued a 1099-K form to users with more than $20,000 in trading volume in a single financial year. A copy of the 1099-K is also sent to the IRS.
Like many other crypto exchanges, due to the potential new reporting requirements, Gemini have confirmed they’ll be sending out 1099-MISC forms to users with more than $600 in crypto income through Gemini Earn. A copy of the 1099-MISC is also sent to the IRS.
Bitstamp isn’t the largest crypto exchange going, but it’s popular with US crypto investors as you can access it in all 50 states. The only product limited to US residents is Bitstamp Earn.
In even better news, Bitstamp makes it easy to get your crypto taxes done. Just create an API key and enter it into your chosen crypto tax app to automatically import all your Bitstamp transaction data.
Alternatively, you can export CSV files of your Bitstamp transaction history from Bitstamp. When you’re selecting the type of transaction data you want to include - make sure you select all and cover the entire period of time you’ve been using your Bitstamp account.
Learn more about how to get started with your Bitstamp taxes with Koinly.
Does Bitstamp report to the IRS?
Yes. Bitstamp reports to the IRS.
Bitstamp has confirmed that they issue both 1099-K and 1099-MISC forms to users. 1099-K forms are issued to any users with more than $20,000 in trading volume, while 1099-MISC forms are issued to users who earn more than $600 in crypto income. If you’re issued a 1099 form, an additional copy is sent to the IRS.
bitFlyer is based in Tokyo, but that hasn’t stopped it becoming a popular crypto exchange for US investors. The exchange is secure and well-regulated, making it a safe option to buy, sell and trade a good variety of popular cryptocurrencies. Most US residents can use bitFlyer as they have operating licenses in most states - you can see a full list of states you can use bitFlyer in here.
Thanks to a simple CSV export option - bitFlyer also makes it easy to get your crypto taxes done fast. Just sign in to your bitFlyer account, head to trade report, pick a date range and export all your transactions. Make sure you pick a date range that reflects your entire trading history on bitFlyer, for as long as you’ve had the account. This helps you calculate your cost basis, short-term capital gains and long-term capital gains accurately.
bitFlyer doesn’t have an API option just yet - but they’ve got one in BETA testing. So hopefully it’ll soon be even easier to get your bitFlyer taxes done.
Learn more about how to get started with your bitFlyer taxes with Koinly.
Does bitFlyer report to the IRS?
Yes. It is likely bitFlyer reports to the IRS.
bitFlyer USA is headquartered in San Francisco and licensed to operate in the majority of US states. To earn these licenses, bitFlyer must meet a variety of operating standards - including tax reporting requirements. Though the IRS hasn’t named bitFlyer as one of the exchanges they work with, it is highly likely bitFlyer shares KYC data with the IRS.
Bittrex is a popular crypto exchange globally and is licensed to operate in the majority of US states. You can buy, sell, trade, stake and more on the platform which offers more than 250 cryptocurrencies. Please note residents of Connecticut, Hawaii, New York and Vermont cannot use Bittrex.
When it comes to crypto tax - Bittrex offers two easy ways to get your crypto tax information. You can generate an API key within your Bittrex account and copy and paste it into your chosen crypto tax app to automatically sync your Bittrex transaction history.
You can also use a CSV file of your transaction data - although you’ll actually need to get two CSV files to cover your complete transaction history. First up you’ll need your order history CSV file which you can find under orders. You can only download one year of data at a time, so make sure to download as many order history CSV files as you need to cover your complete transaction history on Bittrex. You’ll also need a deposits and withdrawals CSV file which you can get by submitting a request with Bittrex support.
Learn more about how to get started with your Bittrex taxes with Koinly.
Does Bittrex report to the IRS?
Yes. Bittrex reports to the IRS.
Bittrex has confirmed they issue 1099-B forms to US users. Whenever you receive a 1099 form, so does the IRS.
How Koinly works with the top crypto exchanges
Koinly crypto tax software makes it easy to do your crypto taxes - whichever exchange, wallet or blockchain you’re using. We support all of the exchanges mentioned above, as well as hundreds more. You can see a full list of our integrations here.
All you need to do is connect your exchange with Koinly using API or by importing a CSV file of your transaction history. Just select add new wallet in Koinly and find the exchange or wallet you’re using.
Then you can pick whether to automatically connect with an API or upload a CSV file of your transaction history from that wallet.
Connect all the exchanges, wallets and blockchains you use so Koinly can calculate your crypto taxes accurately. Once you’ve done this, you’ll be able to find all the information you need about your crypto capital gains, losses, income and expenses under the tax reports page. You can also download specific tax reports for the US including a pre-filled Form 8949 and Schedule D for capital gains and losses, as well as a Schedule 1 form for crypto income. Additionally, you can download reports for tax apps like TurboTax and TaxAct.