How to do your Atomic Wallet taxes in 2024: Complete Instructions + Tools (2024)

FAQs

How to get tax documents in Atomic Wallet? ›

Navigate to your Atomic Wallet account and find the option for downloading your complete transaction history. Import your transaction history directly into CoinLedger by mapping the data into the preferred CSV file format. CoinLedger automatically generates your gains, losses, and income tax reports based on this data.

Does Atomic Wallet automatically deduct taxes? No, as of 2024, Atomic Wallet does not automatically deduct taxes from crypto trades. However, Atomic Wallet might still report your crypto transactions to your country's tax authority, like the IRS or HMRC.

This refers to the original value of an asset for tax purposes. In order to calculate crypto capital gains and losses, we need a simple formula: proceeds - cost basis = capital gain or loss. Note that two additional variables may affect your cost basis: accounting method and transaction fees.

Summary: Take your total gain/loss on Form 8949 and report it on Schedule D. Once your Form 8949 is filled out, take your total net gain or net loss and include it on Schedule D. Schedule D — attached to Form 1040 — is used to report gains and losses from all sources.

The IRS treats cryptocurrency as “property.” If you buy, sell or exchange cryptocurrency, you're likely on the hook for paying crypto taxes. Reporting your crypto activity requires using Form 1040 Schedule D as your crypto tax form to reconcile your capital gains and losses and Form 8949 if necessary.

If you want to withdraw money from this wallet to a fiat currency, like US dollars, Euros, or Pounds, you'll have to first transfer your crypto to Zengo (or another wallet or exchange that supports a fiat offramp gateway). You can then withdraw directly from Zengo to your bank account in fiat currency.

Yes, Bitcoin and other cryptocurrencies can be traced. Transactions are recorded on a public ledger, making them accessible to anyone, including government agencies. Centralized exchanges provide customer data, such as wallet addresses and personal information, to the IRS.

Atomic Wallet is a cold wallet type, all passwords and data are stored on the user's device and it is not kept at any server, so there is no custody risks or the possibility of losing funds through centralized services. The main risk in Atomic Wallet is if you lose your backup phrase or send it to another person.

1. Can the IRS track crypto? Yes, the IRS can track crypto as the agency has ordered crypto exchanges and trading platforms to report tax forms such as 1099-B and 1099-K to them. Also, in recent years, several exchanges have received several subpoenas directing them to reveal some of the user accounts.

Yes, you can write off crypto losses on taxes even if you have no gains. If your total capital losses exceed your total capital gains, US taxpayers can deduct the difference as a loss on your tax return, up to $3,000 per year ($1,500 if married filing separately).

What is the best crypto tax calculator? ›

There is no way to legally avoid taxes when cashing out cryptocurrency. However, strategies like tax-loss harvesting can help you reduce your tax bill legally.

You owe taxes on any amount of profit or income, even $1. Crypto exchanges are required to report income of more than $600, but you still are required to pay taxes on smaller amounts. Do you need to report taxes on Bitcoin you don't sell? If you buy Bitcoin, there's nothing to report until you sell.

Failure to file can result in an initial fine of $10,000. That's why it's beneficial to seek the help of a professional, like the CPAs for American expatriates at US Tax Help. Otherwise, you might face a steep fine from the IRS for failure to report your cryptocurrency gains.

For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency.

You will receive an email from no-reply@crypto.com to the latest email address that we have on record. Follow the link to download a copy of your Form 1099-MISC or 1099-B. If you have not received an email please check your email's spam or junk folder. If a paper copy is needed, please email contact@crypto.com.

In the Wallet tab, select the coin you need your history for. Click the icon at the top-right corner. Click Export Transactions. Voila, the CSV file with your transaction history is now in your Desktop folder.