How to file your Ethereum (ETH) taxes with Koinly
How to do your Ethereum (ETH) taxes with Koinly
Ethereum is a market-leading, open-source blockchain with smart contract functionality, and trailblazing the way for the DeFi market. Whether you're staking, liquidity mining or trading, you'll need to pay taxes on your ETH investments - but Koinly can help. Here's how.
Follow these steps to sync your Ethereum (ETH & Tokens) data automatically to Koinly:
- Open your Ethereum (ETH & Tokens) wallet app
- Locate and copy your public address or key
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find Ethereum (ETH & Tokens) in the list
- Select API > Paste the public address/key you copied above in the appropriate box
- Hit Import and wait for Koinly to sync your data. This can take a few minutes
- 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 to find your Ethereum (ETH) public address
To connect to Koinly, all you need is your Ethereum public address for each wallet you use to interact with Ethereum. The exact steps on how to get your public address vary a little depending on the wallet you’re using, but we’ve got instructions on how to get your public address for all the top Ethereum wallets including:
Don't see your wallet? You'll find easy-to-follow steps on how to get your Ethereum public address from hundreds of wallets here.
And don't forget, in order for Koinly to calculate your crypto taxes correctly you’ll need to add your public address from every wallet you use to interact with Ethereum.
Your frequently asked questions
How is staking Ethereum taxed?
Staking rewards may be taxed differently depending on where you live, but generally speaking, tax offices view staking rewards as additional income and subject them to Income Tax upon receipt.
How is being paid in Ethereum taxed?
Getting paid in Ethereum is generally viewed the same way being paid in fiat currency is. You’ll need to identify the fair market value of any ETH on the day you received it and you’ll pay Income Tax on this amount upon receipt.
How are liquidity pool tokens taxed?
Most tax offices - excluding HMRC - haven’t released guidance on liquidity pool tokens yet. However, as you’re often trading capital in return for LP tokens, this is potentially going to be viewed as a crypto to crypto trade which is subject to Capital Gains Tax in most countries.
Do you have to pay tax on Ethereum?
Yes. All cryptocurrencies - including Ethereum - are subject to tax. The exact tax you’ll pay depends on where you live and the specific transactions you’re making. You can learn more about ETH and crypto tax in your country in our crypto country tax guides.
Can the IRS track Ethereum?
Yes. The IRS can track Ethereum and other cryptocurrencies. If you’re trading ETH on any large centralized crypto exchange, the majority of these exchanges issue users with 1099-MISC forms. They may also share KYC data with the IRS to ensure tax compliance.
Does the IRS know about my ETH wallet?
If you’re using ETH wallets, you might think there’s no way the IRS can know about your ETH as many of these have no KYC verification. This is true - to an extent. But if you’re transferring your ETH between your non-custodial wallet(s) and exchanges, these exchanges will still have the data the IRS needs to track your ETH.