How To Do Your BlockFi Taxes With Koinly
Connect BlockFi with Koinly to calculate your crypto tax
BlockFi is a crypto exchange, based in New York and founded in 2017 where investors around the world can buy, sell, and trade crypto, as well as borrow and loan crypto to earn. Whatever your BlockFi investments, Koinly can help with your BlockFi taxes.
Follow these steps to download your BlockFi data:
BlockFi has been impacted by the recent FTX Group bankruptcy filing and has halted withdrawals. We recommend users export all their BlockFi investment activity to CSV files as soon as possible to ensure you can easily report any previous taxable transactions. These records may also assist you in claiming a loss in the future, should BlockFi be unable to resume operations.
- Log in to your BlockFi account.
- Go to your dashboard and scroll to transactions.
- Select the download icon on the right, above your transaction data. By default, all your transactions should be included in this CSV, but check your filters for date and type before downloading.
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find BlockFi in the list
- Click on it and select "File import" in the import options screen
- Upload the files you downloaded from BlockFi (one at a time) and click on Import
- Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
- Go to the Tax Reports page to view your tax liability!
How are BlockFi transactions taxed?
Crypto taxes vary depending on where you live and your tax office's guidance on the various transactions. However, in general, two taxes may apply to your BlockFi transactions.
Capital Gains Tax: If you sell or trade crypto on BlockFi, you'll pay Capital Gains Tax on any profit you make.
Income Tax: If you're earning new coins or tokens on BlockFi, for example, if you put crypto into a BlockFi interest account and earn new coins via an API monthly, receive crypto bonuses or promotional payouts, then you'll pay Income Tax based on the fair market value of the coins on the day you receive them in your fiat currency.
Want to learn more about crypto tax where you live? Read our country crypto tax guides.
Does BlockFi provide tax documents?
BlockFi doesn't generally provide tax documents, however, for US users, BlockFi may send a 1099-B or 1099-MISC form. Any US users who have earned more than $600 in interest, crypto bonuses, or promotional payouts in a single financial year will be issued a 1099-MISC form and any US users who have traded on BlockFi will be issued a 1099-B form. Learn more about 1099 forms and what to do with them.
But remember, whenever you receive a 1099 form, the IRS gets an identical copy.
If you live outside the US, or you need to report more than your 1099 form includes, you'll need to get your complete transaction history from BlockFi instead. Then you can either calculate your BlockFi taxes yourself or use crypto tax software to help you.
How to get your BlockFi tax documents with Koinly
Using Koinly, you can get your BlockFi taxes done easily. All you need is a CSV file of your BlockFi transaction history.
Once you have your BlockFi CSV file, simply upload it to Koinly and Koinly becomes the ultimate BlockFi tax tool. Koinly calculates your BlockFi taxes based on your location and generates a variety of crypto tax reports, so you can file with your tax office in no time at all.
Does BlockFi report to the IRS?
Yes. BlockFi issues any US user with more than $600 in income with a 1099-MISC form and US users who have traded on BlockFi with a 1099-B form. Whenever you get a 1099 form, so does the IRS.
BlockFi has confirmed that despite bankruptcy proceedings, the platform will issue US residents with 1099-MISC and 1099-B forms in 2023. If you're going to receive a BlockFi 1099 form, it'll be available to download from the taxes section of your BlockFi account.