How To Do Your Cash App Taxes with Koinly
Formerly Squash Cash, Cash App is a mobile payment service with more than 70 million users across the US and the UK. As well as supporting fiat currency, Cash App also supports Bitcoin, letting investors buy, sell, send, and receive Bitcoin easily with low fees. Whatever your Bitcoin investments, Koinly can help with your Cash App taxes.
Follow these steps to download your Cash App data:
- Log in to Cash App on your desktop.
- Select statements in the top right corner.
- Select export CSV.
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find Cash App in the list
- Click on it and select "File import" in the import options screen
- Upload the files you downloaded from Cash App (one at a time) and click on Import
- 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 Cash App transactions taxed?
There are two kinds of tax that may apply to your Bitcoin transactions in Cash App - Capital Gains Tax and Income Tax.
Capital Gains Tax: You'll pay Capital Gains Tax on any profits any time you sell Bitcoin via Cash App.
Income Tax: If you're being paid in Bitcoin and receiving it on Cash App, you'll need to pay Income Tax upon receipt based on the fair market value of BTC in USD or GBP on the day you received it.
Does Square Cash App provide tax documents?
Cash App provides US users who have transacted with Bitcoin with a Form 1099-B. However, as most investors are aware, most platforms have difficulty tracking cost basis if you've moved Bitcoin into your Cash App, and any Bitcoin transferred from your Cash App account to another wallet will not be included. So often, these forms are not helpful in reporting your crypto taxes.
Cash App does not provide UK users with any tax documents.
How to get your Square Cash App tax report with Koinly
If you need to report your crypto taxes to the IRS or HMRC in a snap - Koinly can help. All you need is a CSV file of your Cash App transaction history to upload to Koinly.
Once you've uploaded, Koinly becomes the ultimate Cash App tax tool. Koinly will calculate your Cash App taxes based on your location and generate your crypto tax report, all within 20 minutes. All you’ll need to do at tax time is download the crypto tax report you need from Koinly and report it to the IRS or HMRC.
Does Square Cash App report to the IRS?
Yes. Cash App reports to the IRS. Any users transacting with Bitcoin via Cash App will receive a 1099-B form. Whenever you receive a 1099-B form, so does the IRS.