How to File Your Cardano (ADA) Taxes with Koinly
How to do your Cardano (ADA) taxes with Koinly
Are you investing in ADA? Whether you're trading, staking or farming ADA, it's incredibly easy to do your Cardano crypto taxes with Koinly.
Follow these steps to sync your Cardano (ADA) data automatically to Koinly:
- Open your Cardano (ADA) 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 Cardano (ADA) 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 Cardano public address
Before connecting Cardano to Koinly you'll need to find your Cardano extended key from all the wallets you use for ADA. Koinly supports all the top Cardano wallets! Popular ADA wallets include:
Don't see your wallet? You'll find easy-to-follow steps on how to get your Cardano public address from hundreds of wallets here.
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 for Cardano. As well as this, it's your extended key that you'll need to enter into Koinly. Most Cardano wallets provide this, but if not you can always import your Cardano transaction data by uploading a CSV file instead.
Your frequently asked questions
How is staking Cardano taxed?
ADA staking rewards tax depends on where you live. However, generally speaking, you'll pay Income Tax upon receipt based on the fair market value of your ADA tokens in your fiat currency on the day you receive them.
How are Cardano airdrops taxed?
Airdrops are taxed differently depending on where you live. However, generally speaking if you receive an ADA airdrop as a reward, you'll pay Income Tax upon receipt and Capital Gains Tax on any gains if you later dispose of your ADA tokens by selling, swapping or spending them.
How are Cardano liquidity pool tokens taxed?
If you're using Cardano DeFi protocols, like SundaeSwap, you may receive LP tokens and additional rewards. DeFi taxes vary depending on where you live, however, generally speaking if you exchange capital for an LP token, this may be viewed as a crypto to crypto trade and any gains subject to Capital Gains Tax. Meanwhile, if you earn new tokens - like SUNDAE - you may be liable to pay Income Tax upon receipt of your tokens based on the fair market value in your country's fiat currency.
Do you pay taxes on staking Cardano?
Yes. Most tax offices around the world are clear that staking rewards - including Cardano staking rewards - are subject to Income Tax upon receipt and Capital Gains Tax upon disposal.
How do I report Cardano staking rewards?
The correct way to report your Cardano staking rewards depends on your tax office. In general, you'll report any income from Cardano staking rewards as part of your annual tax return. You'll need to identify the fair market value of any ADA tokens received as a reward for staking, on the day you received them, in your country's fiat currency.