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How to file your Coinbase Wallet taxes with Koinly

Coinbase Wallet pairs perfectly with Koinly to make crypto tax easy! 🤝Sync Coinbase Wallet with Koinly to calculate your crypto taxes fast. ⚡ Connect in minutes! 🖱️

Last updated: Monday, 30 January 2023

How to do your Coinbase Wallet taxes with Koinly 

Coinbase Wallet is a self-custody web wallet, giving you more control over your crypto. The wallet supports Ethereum and all EVM-compatible networks including Polygon, Avalanche C-Chain and BNB Chain, opening investors up to a realm of DeFi opportunities. Whatever your Coinbase Wallet investments, Koinly can help you get your taxes done - just connect via API using your public address or upload a CSV file. Here's how it works.

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

How are Coinbase Wallet transactions taxed?

The tax you’ll pay on your Coinbase transactions all depends on where you live and the transactions you’ve made. Learn more about crypto tax where you live in our crypto tax guides, but in brief:

  • Capital Gains Tax: If you sold, swapped, spent or (sometimes!) gifted crypto using Coinbase Wallet, you’ll generally pay Capital Gains Tax on any gain made as a result. 
  • Income Tax: If you earned new tokens and received them to your Coinbase Wallet - for example, staking rewards - this is generally viewed as additional income and subject to Income Tax upon receipt. 

Does Coinbase Wallet report to the IRS?

No, Coinbase Wallet doesn't report to the IRS as the wallet holds no KYC data. However, if you're using Coinbase Wallet in conjunction with other Coinbase products - these other platforms may well report to the IRS. Coinbase lost a John Doe Summons case to the IRS back in 2016, which forced Coinbase to share KYC data with the IRS. The IRS used this information to send out more than 10,000 letters to Coinbase users warning they had failed to report additional income.

How do I file my Coinbase Wallet taxes?

Generally, you’ll report any capital gains, losses or income from crypto investments - including your Coinbase Wallet investments - to your tax office as part of your annual tax return.

You can do this yourself, but it’s hard work! You’ll need to identify each taxable transaction, the kind of tax applied, calculate your gains, losses and any income - then report all this to your tax office.

Fortunately, Koinly helps make this simple. With Koinly, all you need to do is connect Coinbase Wallet automatically and Koinly calculates your tax liability for you and generates a variety of tax reports, ready to help you file with your tax office come your tax deadline. Here’s how to connect.

How to connect Koinly and Coinbase Wallet automatically

You'll need to get your wallet address for each blockchain you interact with using Coinbase Wallet - for example, Ethereum, Polygon and Solana. The instructions will be similar for each - so we'll use Ethereum as our example.

On Coinbase Wallet

  1. Open your Coinbase Wallet browser extension or mobile app.
  2. In the left corner, select your wallet name.
  3. Select the blockchain you'd like to connect to Koinly - for example, Ethereum.
  4. Select the small copy icon next to the blockchain to copy your public address.

On Koinly

  1. Sign up or log in to Koinly and go to wallets
  2. Select add new wallet.
  3. Search for Coinbase Wallet.
  4. Select set up auto sync.
  5. Select connect blockchains.
  6. Search for the blockchain you're connecting - for example, Ethereum.
  7. Select the blockchain you're connecting - for example, Ethereum (ETH & Tokens).
  8. Paste your public address from Coinbase Wallet.
  9. Select import.

Please note, Coinbase wallet doesn’t provide xpub keys for users. If you’re using a blockchain with xpub keys - you’ll need to generate these in a different way. Follow our guide on how to generate your xpub key for Coinbase Wallet. 

Important

If you use your Coinbase Wallet to interact with multiple blockchains, you'll need to get your public address for each of these blockchains from Coinbase Wallet and add each one to Koinly. In Coinbase Wallet, follow the instructions above, but just select the blockchain you'd like to connect to instead. Make sure you do this for each blockchain you interact with using Coinbase Wallet to get your complete transaction history.

How to integrate Coinbase Wallet with Koinly using CSV

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

How to download and export your transaction history CSV file from Coinbase Wallet 

Unfortunately, Coinbase Wallet does not offer users a simple export CSV file option just yet which is why we recommend the API method for most users. However, if you prefer to use CSV files only, you may be able to get a CSV file of your transaction history on a given blockchain using a blockchain explorer. Alternatively, you can create a custom CSV file (we've got a guide on that too). Once you have your CSV file, here's how to upload it to Koinly.

How to upload your Coinbase Wallet 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: Coinbase Wallet
  3. Select import from file
  4. Upload your CSV file

Important

Double check your transactions are tagged correctly in Koinly for your country’s tax rules!

How do I troubleshoot my Coinbase Wallet integration to Koinly?

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

Calculate your Coinbase Wallet taxes

Sign up free today to calculate your Coinbase Wallet taxes

Does Coinbase Wallet have tax documents?

No, Coinbase Wallet does not issue tax documents to any users. You’ll need to create them yourself or use crypto tax software.

How do I get Coinbase Wallet tax documents?

The easiest way to get your Coinbase Wallet tax documents is to connect to Koinly automatically using your public address. This automatically returns your transaction data and lets Koinly calculate your Coinbase Wallet taxes for you.

Do you get a 1099 from Coinbase Wallet?

No. As a non-custodial wallet, Coinbase Wallet holds no KYC details and cannot issue a 1099 form to you or the IRS. However, if you're using Coinbase Wallet in conjunction with other Coinbase products like Coinbase Exchange or Coinbase Pro, both these platforms may issue 1099-MISC forms to any US investors who earned $600 or more in miscellaneous income such as rewards or fees from Coinbase Earn, USDC Rewards, and/or staking in 2021

Does Coinbase Wallet provide financial or end of year statements?

No, Coinbase Wallet 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 Coinbase Wallet?

Even though it’s a non-custodial DeFi wallet, if you have taxable transactions like capital gains or income from your Coinbase Wallet investments, you’ll need to report these figures to your tax office. 

Is Coinbase Wallet safe?

Yes, Coinbase Wallet is widely regarded as a very safe non-custodial wallet, in part, thanks to its incorporation into the wider Coinbase group. But your crypto is only as safe as you are, so you should follow best security practices to avoid losses.

What's the difference between Coinbase and Coinbase wallet?

Coinbase is a custodial crypto exchange, while Coinbase Wallet is a non-custodial web wallet. You retain your keys on your device with Coinbase Wallet, but this is not the case if you store your crypto on Coinbase.