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How to file your Celsius taxes with Koinly

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Last updated: Monday, 30 January 2023

Celsius paused all withdrawals, swaps and transfers on the 12th of June 2022 and filed for bankruptcy on the 14th of July 2022. Despite this, users may still need to report any taxable transactions on Celsius prior to the platform halting operations. The Celsius site is still operational at the time of writing, although a pop-up appears warning the company has filed for bankruptcy. If you close the pop up, you should still be able to log in to your Celsius account and export your transaction history.

How to do your Celsius taxes with Koinly

Celsius Network was a popular CeFi lending platform that attracted more than 1.7 million investors looking to earn passive income on their held assets. However, in June 2022, Celsius paused all withdrawals and filed for Chapter 11 bankruptcy in July 2022, leaving many investors unable to access their funds. Despite this, you may still need to report your taxable Celsius transactions to your tax office - and Koinly can help, here’s how.

  1. Sign up to Koinly and choose your country and currency
  2. Connect Celsius with Koinly to import all your FTX US trades safely and securely
  3. Koinly categorizes Celsius transactions into gains, losses and income
  4. Koinly calculates your Celsius Capital Gains Tax and Celsius Income Tax
  5. Download your Celsius tax report from Koinly
  6. File your Celsius taxes with your tax office yourself or with your crypto tax accountant

Watch how to do your Celsius taxes fast 

Does Celsius report to the IRS?

Yes, Celsius reported to the IRS. Any time you received a 1099 form from Celsius, the IRS received an identical copy.

How do I file my Celsius taxes?

Celsius bankruptcy proceedings may drag on for several years - much like the Mt. Gox proceedings. While investors may eventually see some of their funds returned, it’s unlikely to happen any time soon.

Worse still, you may still need to report your taxable transactions on Celsius prior to the collapse to your tax office as part of your annual tax return - but Koinly can help. 

Koinly works by importing your Celsius transaction data to analyze what's taxable, and what's not. Here’s how to connect.

How to connect Koinly and Celsius via API

On Celsius

  1. Log in to Celsius
  2. Select your account name in the top right corner
  3. Select API from the drop down menu
  4. Select create new key
  5. Check all read permissions, including read balance, read transactions, read transfers and read withdrawals
  6. Select generate
  7. Copy your API key

On Koinly

  1. Sign up or log in to Koinly and go to wallets
  2. Select add new wallet: Celsius
  3. Select set up auto-sync
  4. Paste your API key
  5. Select secure import

Important

1. The Celsius API is read only by default, so you don’t need to worry about Koinly having access via API.

2. Not sure how to deal with loans made on Celsius or having issues with how your collateral appears in Koinly? See our guide here.

How to integrate Celsius with Koinly using CSV

You'll need to start by downloading a CSV file with your full trading history from Celsius before you can upload it to Koinly - here's how.

How to download and export your transaction history CSV file from Celsius 

  1. Log in to the Celsius app
  2. Select account balance in the top left
  3. Select send CSV to email
  4. Your CSV file will be sent to the email associated with your Celsius account - download it from here

How to upload your Celsius CSV to Koinly

Now you've got your CSV file, here's how to upload it to Koinly.

  1. Sign up or log in to Koinly and go to wallets
  2. Select add new wallet: Celsius
  3. Select import from file
  4. Upload your CSV file

Important

It’s unclear how much longer the Celsius API may remain active. As such, we recommend users export their complete Celsius transaction history to CSV as soon as possible. This will help you with filing any taxes, and may help prove losses of funds in the future.

How do I troubleshoot my Celsius integration to Koinly?

Problems connecting Celsius and Koinly? No worries - there's help at hand:

Calculate your Celsius taxes

Sign up free to calculate your Celsius taxes today.

Does Celsius have tax documents?

Prior to filing for bankruptcy in July 2022, Celsius provided some tax documents (1099 forms) for US users exclusively. 

How do I get Celsius tax documents?

Celsius offers 2 easy ways to export your transaction history to connect with crypto tax software - like Koinly - and generate tax forms. Either connect via API or upload a CSV file of your Celsius transaction history. 

Do you get a 1099 from Celsius?

Yes. Celsius issued 1099-MISC forms for US investors who earned $600 or more on the platform throughout the financial year.

Remember, your 1099-MISC form only shows your earnings from Celsius and may not represent an accurate picture of your earnings from crypto overall. If you later sold or swapped your CEL tokens or other earnings, you’ll be liable for Capital Gains Tax on any profits too. This is why you need your entire Celsius transaction history and not just a 1099-MISC form.

When will I get a Celsius 1099 form?

To get your 1099-MISC form, go to profile, then reports, then tax report. You can then choose to have your 1099-MISC posted or emailed to you. In general, 1099 forms should be available by February of the following year, but you’ll be able to see if yours is still generating in the status box next to the form.  It is not clear whether Celsius will issue 1099 forms for the 2022 financial year.

Does Celsius provide financial or end of year statements?

No, Celsius does not provide an end of year tax statement. But you can use crypto tax software to create one.

Do I have to pay taxes on Celsius?

Despite bankruptcy proceedings, you may still have to report taxable transactions on Celsius - and if you have losses, this may benefit you as you can use them to offset any gains and reduce your tax bill. 

Does Celsius report to tax authorities?

It’s likely Celsius reports to other tax authorities around the world like the ATO, HMRC and the CRA to name a few. Most countries have requirements to operate in that country, including sharing customer data with the relevant authorities to ensure tax compliance.

Is Celsius safe?

Prior to halting withdrawals suddenly, Celsius was considered a relatively safe CeFi platform that attracted millions of investors. However, after filing for bankruptcy proceedings, many investors have been with huge losses as a result.

I took out a loan on Celsius, but it's not appearing correctly in Koinly - what do I do?

This is a known issue for some users, which is why we put together our guide to help walk you through how to resolve it. See it here.

What can I do to recover my Celsius investments?

Unfortunately, very little. Here’s what our Head of Tax, Danny Talwar, had to say, "Court proceedings for Celsius customers may drag out many years, so investors may not receive any deposits back for some time - akin to the proceedings after the Mt. Gox collapse in 2014. While Celsius investors may be facing drawn-out legal proceedings, the Chapter 11 filing may spell temporary relief for the larger crypto market - it likely means Celsius won't be selling their holdings any time soon into an already depressed market."

What happened to Celsius?

On Sunday the 12th of June 2022, Celsius released a statement saying it was “pausing all withdrawals, Swap, and transfers between accounts" for the 1.7 million investors using the platform, due to extreme market conditions. On the 14th of July 2022, Celsius announced the company was filing for bankruptcy. In the company's court filing, it was revealed Celsius had liabilities of $5.5 billion and assets of $4.3 billion - with a $1.2 billion hole in the balance sheet.