Major tax preparation firm H&R Block and CoinTracker announced their alliance For the 2023 tax season.
CoinTracker stated in a statement that customers of American H&R Block would be able to use CoinTracker and have their Form 8949 involving cryptocurrency trades immediately filled out as a result of the cooperation.
To report one’s capital gains and losses from investments, one must fill out this form throughout tax season. The H&R Block app used to require users to manually copy and paste data from each form field, which could result in errors.
Users of H&R can now integrate their cryptocurrency transactions from “most” exchanges into their H&R Block tax forms thanks to a new integration.
American tax preparation firm H&R Block was established in 1955. Almost 20 million people used H&R Block to file their taxes in 2020.As a result of the integration, the two businesses also made some additional improvements for the 2023 tax season.
These improvements include the provision of free CoinTracker accounts to all H&R users with fewer than 25 crypto trades as well as some discounts for other H&R users. Vera Tzoneva, COO of CoinTracker, stated in a statement that the new connection could lessen the bother of paying cryptocurrency taxes:
“The process of crypto tax filing is far too complex. We remain fixated on delivering peace of mind and the requisite tools for all crypto users. Partnering with H&R Block is a major step toward realizing this vision.”
For some cryptocurrency traders, tax season may be a perplexing and difficult time of year. The Federal Revenue Agency has yet to specify precisely which businesses qualify under the term of “brokers,” despite the fact that legally recognized “crypto brokers” are required to send a Form 1099-B to each customer.
For their users, the majority of centralized exchanges generated the necessary forms, but not decentralized finance protocols. Some taxpayers are now depending on blockchain explorers to calculate their earnings and losses as a result of this.
If a taxpayer transfers cryptocurrency across exchanges, transactions may appear on several tax returns, making it difficult to trace gains and losses even if the taxpayer only utilizes centralized exchanges.
Many crypto tax software options have been made available over the past few years, including CoinTracker, Koinly, Taxbit, CoinLedger, TokenTax, and others.
With the help of these solutions, users can log into a single interface and track all of their transactions from their exchange and wallet accounts. Nevertheless, not all solutions are compatible with services like H&R Block, TurboTax, FreeTaxUSA, etc. that offer tax preparation.
