back

How To Do Your Binance US Taxes

Simplify crypto taxes with Koinly crypto tax software. Koinly integrates easily with Binance US through API or CSV file import to calculate your taxes and generate your tax report, ready to submit to the IRS.

API Import CSV File Import

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.

Koinly integrates perfectly with Binance US to help you get your crypto tax report. To get started, import your Binance US data through API or CSV file import. Once Koinly has your transaction history, it calculates your gains, losses, expenses and income to generate your tax report. All you need to do is submit it to the IRS.

How to connect Binance US to Koinly via API

On Koinly

  1. Sign up or log in to Koinly and go to wallets.
  2. Select add new wallet: Binance US.
  3. Select set up auto sync.
  4. Head over to Binance US.

On Binance US

  1. Log in to your Binance US account.
  2. In the top right corner, hover over your profile icon to bring up the drop down menu.
  3. From the drop down menu, select API management.
  4. Give your API key a label, like Koinly.
  5. Complete the two-factor authentication.
  6. Select edit restrictions and uncheck enable spot & margin trading and enable withdrawals. Koinly just needs read-only access.
  7. Check unrestricted for the IP access restrictions.
  8. Select save.
  9. Copy the API key and API secret key.

On Koinly

  1. Paste the API key into the API key box.
  2. Paste the API secret into the API secret box.
  3. Select secure import.

Good to know

You'll need to set up two-factor authentication to use the API management feature in Binance US, so make sure you've done this before you try to auto-sync with Koinly.

The Binance US API doesn't include your fiat purchases. So if you know you've bought fiat through this exchange, you'll need to add these transactions manually or use the CSV file import method below.

Once you've selected secure import, it'll take a couple of minutes for Koinly to sync your data, so don't worry if you don't see your transactions straight away.

If you see a small yellow icon next to your Binance US wallet, this is Koinly telling you there is an issue with the API data. You can click on the yellow icon to identify the exact transactions there is an issue with. Then, click the three dots next to your wallet and select troubleshoot to find out how to resolve them.

How to connect Binance US to Koinly via CSV Upload

On Koinly

  1. Sign up or log in to your Koinly account and go to wallets.
  2. Select add new wallet: Binance US.
  3. Select import from file.
  4. Head over to Binance US.

On Binance US

  1. Log in to your Binance US account.
  2. Select wallet then deposit and withdrawal history.
  3. Select export statement.
  4. Select the time frame.
  5. Select generate.
  6. Download the statement.

On Koinly

  1. Upload the CSV files.
  2. Select import.

Good to know

The CSV file import method is better for advanced traders. This is because the Binance US API is limited in the data it imports, so transactions like futures trades may not be included.

If you're using the CSV file method because the API integration had missing data, it's important you delete the transactions you imported. You can do this by deleting your existing Binance US wallet. You can also do this by deleting the existing transactions within it by selecting the three dots on the right hand side of your Binance US wallet in Koinly, then selecting troubleshoot. On the next page, you'll see an option to delete existing trades and to delete existing transactions.

You should import transaction data for as long as you've been using your Binance US account, even if you're only filing taxes for the current tax year. This is so Koinly can generate an accurate tax report in regard to losses and gains. The IRS lets tax payers carry forward losses to later years to offset against gains. As well as this, US investors can benefit from a lower tax rate for long-term capital gains.

Where do I see my Binance US trades on Koinly?

Koinly works as both a portfolio tracker and a cryptocurrency tax calculator. Once you've synced your Binance US account, select the Binance US wallet in Koinly to look through your Binance US transactions. You can also head into your Koinly dashboard to view your overall balance, assets and trades across all your wallets and exchanges, so you can keep an eye on all your crypto investments from one platform.

How do I check that my Binance US import is accurate?

Koinly is smart, but if the data imported has issues, then it won't be able to generate an accurate tax report. We recommend that you check through your Binance US transactions after you've imported your data, whether you used the API or CSV integration method. This is so you can identify any issues and resolve them, so Koinly can calculate your gains, losses, income and expenses correctly. You can follow these steps to check your tax report is accurate.

All wallets, exchanges and blockchains

First, sync all the crypto exchanges and wallets you use with Koinly. This lets Koinly identify when you're moving coins or tokens between wallets, which is a tax free transaction. If you don't sync all your wallets, Koinly will think these transactions are deposits or withdrawals, which are subject to tax.

Look out for big numbers

After this, head to the transactions page and filter the type of transaction. You can filter this by withdrawals and deposits and you should check both. This is so you can look for any withdrawals or deposits that you think are transfers between your own wallets - you can fix this manually.

Review the labels of your transactions

On the same page, use the wallet filter and select your Binance US transactions only. Look through the labels on your transactions and add labels as you need to. At times, imported data is missing these tags. These tags are important because different types of transactions are taxed differently - either through Income Tax or Capital Gains Tax. You can use the following tags in the Koinly platform:

Withdrawal Tags (sending funds):

Withdrawals refer to any time you send a token/coin. Koinly treats this as you disposing of an asset, which is subject to Capital Gains Tax in most countries. However, some withdrawals are tax free - you can label them with withdrawal tags.

  • Tag as gift: Gifting crypto is tax free in many countries. Check your country's crypto tax rules and tag any gifts.
  • Tag as lost: Use this label to tag any stolen crypto and claim it as a loss, depending on your country.
  • Tag as cost: The cost tag is used to label any transaction fees.
  • Sent to pool: Tag any tokens or coins in staking/liquidity pools as sent to pool. This is so Koinly knows you still hold the asset.

Deposit Tags (receiving funds):

Deposits refer to any time you receive new coins. Koinly treats this as a purchase at market price or investment. It depends on your location and the type of transaction as to whether this will fall under Income Tax or Capital Gains Tax. Use deposit tags to label these.

  • Tag as airdrop: Many countries consider airdrops a bonus, making them subject to Income Tax.
  • Tag as fork: Like above, any new coins from a fork could be considered a bonus and subject to Income Tax.
  • Tag as mining: Many countries see mining as a form of income so it is subject to Income Tax.
  • Tag as loan interest: Receiving interest from loaned crypto is often seen as income and therefore subject to Income Tax.
  • Tag as income: Getting paid in crypto is subject to Income Tax like any other salary.
  • Received from pool: Use this label to tag the original capital you sent to a staking/liquidity pool, not any rewards from it.
  • Tag as reward: Use this to tag any rewards received from things like referral schemes or staking pools. Rewards are often considered a bonus and subject to Income Tax.

Exchange Tags (trading funds):

Exchanges are when you trade crypto for crypto, buy crypto with fiat or sell crypto for fiat. Trading crypto is taxed depending on your location, while buying crypto is never taxed and selling crypto is always taxed. Koinly calculates all this for you, but there is one exchange tag you might need in rare instances.

  • Tag as swap: Use this label if a coin has changed its name/symbol. This is a tax free transaction.

For more help, read our Getting Started Guide. It has lots of great tips on how to use Koinly, as well as answers to common queries.

How do I get my Binance US tax report?

Crypto tax software simplifies reporting your crypto investments to the IRS. After you've synced your Binance US account, Koinly works its magic to calculate your taxes and generate your report.

First, Koinly identifies the market rates for all your transactions:

  • Calculates the fair market value (FMV) of all your cryptocurrency transactions in the currency of your choice. In this instance, USD.

Then, Koinly calculates your taxable position, including:

  • Income
  • Short-term gains
  • Long-term gains
  • Capital losses
  • Net capital gains
  • Expenses

Finally, Koinly puts all this information together in an easy-to-read summary on the tax report page. All you have to do is pick the relevant report for your country.

  • Complete Tax Report
  • Capital Gains Report
  • Income Report
  • Transaction History
  • Expenses Report
  • End of Year Holdings Report
  • Gifts, Donations and Lost Assets

Koinly also generates specific tax reports based on your location. For American investors, this includes the IRS Schedule D Form and the TurboTax Online Report.

Got the Binance US tax report - what do I do with it at tax time?

For American investors using Binance US, you'll need to fill in form 8949 and add it to Form Schedule D. You can report your taxes between the 1st of January 2022 until the 15th of April 2022.

For those using TurboTax, see our guide on how to upload your crypto tax report to TurboTax.

If you're using an accountant, you can invite them to review your crypto tax reports in your Koinly account settings.

Does Binance US report to the IRS?

Binance has a long and complicated history with the IRS. The parent company stopped allowing US investors a couple of years ago, which was why Binance US got started in the first place.

The IRS is putting pressure on all cryptocurrency exchanges to share customer data to ensure tax compliance. As one of the largest American crypto exchanges, Binance US is being investigated by the IRS currently. Binance US state they work with the IRS to share information when requested, as well as with state authorities in some instances.

How do I troubleshoot my Binance US integration to Koinly?

Koinly has an awesome help section, packed full of great articles all about our most common queries, as well as some not so common ones. Some of our most frequent Binance US questions include:

If you can't see the answer you're looking for in our help section, head over to our online community where you'll find plenty of discussion on everything Koinly. Still stuck? Talk to us.