With the TaxBit connection, Jack Dorsey’s Cash App makes it simpler for holders of the cryptocurrency to compute their taxes.
Cash App, a mobile payment processor, has included TaxBit, a cryptocurrency tax and accounting software, into its services to make it easier for owners of Bitcoin (BTC $23,439) to file their taxes.
Both businesses stated that starting of February 28, users can now utilize TaxBit to track their Bitcoin transactions for the purpose of filing taxes.
The platform of TaxBit, according to its chief operating officer Lindsey Argalas, makes tax filing easier “for everyone who has integrated digital assets into their portfolio.”
The year after introducing BTC deposits, Cash App introduced its Bitcoin trading services. Almost 10 million people, according to the business, are Bitcoin users.
Block Inc., the parent business of Cash App, has made billions of dollars in Bitcoin sales over the years. The fourth quarter of 2021 saw Block Inc. produce $1.96 billion in Bitcoin revenue, according to documents filed with the US Securities and Exchange Commission.
In 2022, TaxBit created TaxBit Network to offer free tax forms to cryptocurrency traders. Almost a dozen US companies, including PayPal, Coinbase, Binance.US, Paxos, and Gemini, were part of the industry coalition at its inception.
The 2022 tax filing season will begin on January 23 according to the IRS in Washington. The deadline for filing taxes and making payments generally is April 18.
The IRS reminded taxpayers of their reporting requirements for cryptocurrency income, including capital gains from trading, mining, and staking operations, in January.
