How to file your Coinbase Wallet taxes with Koinly
Coinbase Wallet is a self-custody web wallet, giving you more control over your crypto. The wallet supports Ethereum and all EVM-compatible networks, including Polygon, Avalanche C-Chain, and BNB Chain, opening investors up to a realm of DeFi opportunities. Whatever your Coinbase Wallet investments, Koinly can help you get your taxes done - just connect via API using your public address or upload a CSV file. Here's how it works.
Follow these steps to sync your Coinbase Wallet data automatically to Koinly:
- Open your Coinbase Wallet wallet app
- Copy the public address for every coin that you have on it (even the ones with a zero balance)
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find Coinbase Wallet 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 are Coinbase Wallet transactions taxed?
The tax you’ll pay on your Coinbase transactions all depends on where you live and the transactions you’ve made. Learn more about crypto tax where you live in our crypto tax guides, but in brief:
Capital Gains Tax: If you sold, swapped, spent or (sometimes!) gifted crypto using Coinbase Wallet, you’ll generally pay Capital Gains Tax on any gain made as a result.
Income Tax: If you earned new tokens and received them to your Coinbase Wallet - for example, staking rewards - this is generally viewed as additional income and subject to Income Tax upon receipt.
Does Coinbase Wallet report to the IRS?
No, Coinbase Wallet doesn't report to the IRS as the wallet holds no KYC data. However, if you're using Coinbase Wallet in conjunction with other Coinbase products - these other platforms may well report to the IRS. Coinbase lost a John Doe Summons case to the IRS back in 2016, which forced Coinbase to share KYC data with the IRS. The IRS used this information to send out more than 10,000 letters to Coinbase users warning they had failed to report additional income.
How do I file my Coinbase Wallet taxes?
Generally, you’ll report any capital gains, losses, or income from crypto investments - including your Coinbase Wallet investments - to your tax office as part of your annual tax return.
You can do this yourself, but it’s hard work! You’ll need to identify each taxable transaction, the kind of tax applied, calculate your gains, losses, and any income - then report all this to your tax office.
Fortunately, Koinly helps make this simple. With Koinly, all you need to do is connect Coinbase Wallet automatically and Koinly calculates your tax liability for you and generates a variety of tax reports, ready to help you file with your tax office come your tax deadline.
Your frequently asked questions
Does Coinbase Wallet have tax documents?
No, Coinbase Wallet does not issue tax documents to any users. You’ll need to create them yourself or use crypto tax software.
How do I get Coinbase Wallet tax documents?
The easiest way to get your Coinbase Wallet tax documents is to connect to Koinly automatically using your public address. This automatically returns your transaction data and lets Koinly calculate your Coinbase Wallet taxes for you.
Do you get a 1099 from Coinbase Wallet?
No. As a non-custodial wallet, Coinbase Wallet holds no KYC details and cannot issue a 1099 form to you or the IRS. However, if you're using Coinbase Wallet in conjunction with other Coinbase products like Coinbase Exchange or Coinbase Pro, both these platforms may issue 1099-MISC forms to any US investors who earned $600 or more in miscellaneous income such as rewards or fees from Coinbase Earn, USDC Rewards, and/or staking in 2021.
Does Coinbase Wallet provide financial or end of year statements?
No, Coinbase Wallet does not provide an end of year tax statement. But you can use crypto tax software to create one.
Do I have to pay taxes on Coinbase Wallet?
Even though it’s a non-custodial DeFi wallet, if you have taxable transactions like capital gains or income from your Coinbase Wallet investments, you’ll need to report these figures to your tax office.
Is Coinbase Wallet safe?
Yes, Coinbase Wallet is widely regarded as a very safe non-custodial wallet, in part, thanks to its incorporation into the wider Coinbase group. But your crypto is only as safe as you are, so you should follow best security practices to avoid losses.