How to file your Binance US taxes with Koinly
How to do your Binance US taxes with Koinly
Since its launch in 2019, the American arm of Binance has quickly grown into one of the largest crypto exchanges in the US. Binance US offers investors more than 50 cryptocurrencies, low trading fees, and high-speed trade execution.
Follow these steps to sync your Binance US data automatically to Koinly:
- Log in to your Binance US account.
- Hover over your email address in the top right corner.
- Select export reports from the drop down menu.
- Under tax API, select generate tax API to generate read-only API keys.
- Complete 2FA.
- Go to your email, open the new email from Binance US and select confirm API key creation.
- Copy your API key and secret key and add them to Koinly.
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find Binance US in the list
- Select API > Paste the API keys 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!
Fiat purchases are not provided by this API
How are my Binance US transactions taxed?
There are two potential taxes you may pay to the IRS on your Binance transactions - Capital Gains Tax or Income Tax:
Capital Gains Tax: Whenever you sell, swap, or spend crypto on Binance US and make a gain, you'll pay Capital Gains Tax on that gain. This applies to all crypto assets including stablecoins, tokens, and NFTs. The amount of tax you'll pay depends on how long you've held your asset and potentially the type of asset. For crypto you've held less than a year, you'll pay the short-term Capital Gains Tax rate, which is the same as your Federal Income Tax rate. For crypto you've held over a year, you'll pay the long-term Capital Gains Tax rate. For NFTs deemed collectibles that you've held over a year, you'll pay the collectibles Capital Gains Tax rate.
Income Tax: Whenever you earn new coins on Binance US, for example, staking rewards, this is likely to be viewed as ordinary income and subject to Income Tax upon receipt.
Want to learn more? Read our Ultimate US Crypto Tax Guide.
Does Binance report to the IRS?
Yes. Binance US is required to report to the IRS under existing guidance and issues US users with more than $600 in income with a 1099 form. As well as this, Binance has faced considerable scrutiny from US authorities and currently has open investigations or cases with the CFTC, SEC, DOJ, and the IRS.
Your frequently asked questions
Does Binance US have tax forms?
The only tax form Binance US issues currently is the 1099-MISC Form. Previously, Binance US issued users with 1099-K Forms. With the impending changes to crypto regulation in the US, this may soon change again.
How do I get Binance US tax forms?
The easiest way to get your Binance US tax forms is to connect to Koinly automatically via API or upload a CSV file of your Binance US transaction history. Koinly will then generate your Binance US tax forms.
Do you get a 1099 from Binance US?
Yes, some users will receive IRS 1099 Forms from Binance. Currently, Binance US issues 1099-MISC forms to US residents with more than $600 in income on the exchange in a single financial year.
When will I get my 1099 form from Binance US?
If you’re going to receive a 1099 form from Binance US, you should receive this by February of the following financial year at the latest - well ahead of the April tax deadline!
Does Binance US provide financial or end of year statements?
No, Binance US does not provide financial or EOFY statements. But you can download a CSV file of your Binance US transaction history and use this as an end of year statement instead.
Do I have to pay taxes on Binance US?
Yes. If you have capital gains or income from your Binance US investments you must report them to the IRS and pay tax. The IRS does not look kindly on crypto tax evasion and is actively cracking down on crypto tax evaders.
What does Binance US report to the IRS?
Currently, Binance issues 1099-MISC forms which include details of any income over $600 investors have made to the IRS. The IRS is currently developing a dedicated digital asset 1099 form, so in the future the information Binance US reports to the IRS may increase considerably.
Why is Binance banned in the US?
Binance isn't banned in the US. Binance withdrew operations from the US and set up Binance US in order to comply with US regulations. This said, despite being the largest crypto exchange and highly compliant with regulations in the US, Binance is facing considerable scrutiny from a variety of US authorities currently.