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.
- Sign up to Koinly and choose your country (USA) and currency (USD)
- Connect Binance US with Koinly to import all your Binance US trades safely and securely
- Koinly categorizes Binance US transactions into gains, losses and income
- Koinly calculates your Binance US Capital Gains Tax and Binance US Income Tax
- Download your IRS crypto tax report from Koinly
- File your Binance US taxes online with the IRS or with your crypto tax accountant
Watch how to do your Binance US taxes fast
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.
How to connect Koinly and Binance US automatically with API
On Binance US
- 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
- 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. This key is read only and only viewable once, so you may wish to save them somewhere safe
On Koinly
- Sign up or log in to Koinly and go to the wallets page
- Select add new wallet: Binance US
- Select set up auto sync
- Paste the API key into the API key box
- Paste the API secret into the API secret box
- Select secure import
Important
1. 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.
2. The Binance US API doesn't include your fiat purchases, you'll need to add these transactions manually or use the CSV file import method below.
3. 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.
How to integrate Binance US with Koinly using CSV
You'll need to start by downloading a CSV file with your full trading history from Binance US before you can upload it to Koinly - here's how.
How to download and export your transaction history CSV file from Binance US
- 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 history & tax reports, select generate reports
- Select tax
- Select yearly report
- Select the year you'd like to export (Remember, you'll need your entire transaction history to upload to Koinly, so make sure you download as many years as you need to to cover the entire period you've had your Binance US account)
- Select CSV file from the file format drop down menu
- Select generate
How to upload your Binance US CSV to Koinly
Now you've got your CSV file, here's how to upload it to Koinly.
- Sign up or log in to your Koinly account and go to the wallets page
- Select add new wallet: Binance US
- Select import from file
- Upload your CSV file(s)
- Select import
Important
1. The CSV file import method is better for many traders. This is because the Binance US API is limited in the data it returns, so transactions like fiat purchases may not be included.
2. 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.
3. 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.
How do I troubleshoot my Binance US integration to Koinly?
Still have issues with your Binance US data import to Koinly? No worries - we have lots of helpful resources:
- Head over to our help center
- Hit up our discussion boards - we might have already answered your question
- Ask us on social media - we're on Twitter or Reddit
- Contact us on email or live chat
- Got a feature request? Give us feedback on Canny
Calculate your Binance US taxes
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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.