Turbotax Calculator 2023
Turbotax Calculator 2023 hey guys Alex Wingo here and welcome back to a new Enslow Wednesday video today I'll be discussing a really important topic that somehow doesn't seem to make too many headlines and that is should you and if. So how do you pay your taxes on your cryptocurrency profits this should be a fairly straightforward video.
I'm gonna start off by googling a little bit about the IRS and crypto show. You guys some of the forms and show you what the general consensus is and then I'm gonna be diving into the software that we use to kind. Of automate our crypto taxes. And how you guys can apply to your own crypto accounting alright moving over to the screen now you'll see I already made a little. Search IRS what form to report with crypto trading gains with this one quick Google search we basically found everything that we need. To know I was actually really surprised that the IRS reported that only about a hundred people reported their cryptocurrency gains I thought that was really mind-boggling because, there's clearly. More than a hundred people holding Bitcoin I mean I'm right now in Berlin and yeah last year everyone was talking about it even people that really aren't tech savvy so I could only imagine how it is.
In the States last time I was, over there it's definitely a topic that everyone is aware of and I'm sure most people are not most people but I would say a good majority it has either. Heard of it or dabbled into it it did surprise, me a little bit to find out that so few people are reporting this it is 100 percent something that you would need to be reporting on your taxes the. First form I want to talk about is the form eight nine for nine this is typically something that. Will be automatically done for you if you use something like TurboTax but, something really quickly to take away from this form is your crypto currency trades will most likely be under the short-term which basically means any, any profit or loss that you had dealing with cryptocurrency should be reported here as long as you, held that asset for under a year if you held it for over a year you put it here the number one really. Difference in taxes on how you will be taxed on that is long-term, gains are typically taxed less I believe they're taxed at a roughly around 25 percent now I'm not going to dive too much into the details of exactly how much, you would owe just typically know that, your long term taxes are much lower are taxed much lower than your short term typically short term is considered something you do, actively as more or less a job so for example my day trading is a short term because I'm in and out typically within a day or in three days, or something like that anyway that's like a real.
Job right I'm really working for those profits and that is taxed under ordinary, income so it's the same as if I had a you know job and I got my paycheck every week it's exactly the same while long term capital gains even though they're both capital gains, long-term capital gains is something you hold for over a year you typically get taxed less I know I think for 2018 those taxes, should be a little less than 20 2017 I think they reduced those recently that's something I. Will let you check because there's a lot of variables the laws change all the time and depending what, country you're in this might not be completely relevant but what every, country does look at is typically short-term gains and long-term so okay now we know about this 8 9 4 9 form what what do we do. From there well there's another form and this is it sounds complicated but it's really straightforward so the 1099 form is the next thing, we don't want to look at and this form is simply something. That you would get from your you know traditional broker thing TD Ameritrade or think Charles Schwab at the end, of the year you can log into your account and basically click on a tax button somewhere in your dashboard and you will be able to get a 1099 form. The 1099 form will basically give you your profit or loss, on whatever you were trading at the end of the year and you enter that number that, you on the 1099 form typically in TurboTax or another tax software or give it to your accountant and your accountant or that tax software will then. Populate your 8 9 4 9. Form accordingly so that's why typically this is a very hands-off thing that you won't be doing yourself so before we move on to I would say the. Next section the second phase of this video I want you to quickly be able to take away 3 things from what we. Talked about so far first of all no matter where you live you're most likely going to have to. Report your taxes on your Krypto earnings or losses actually if you have losses it's even better because you can duck deduct those from your, income and save even more taxes so it's really important to do this if. There's one thing I've learned is that governments do not mess around when it comes to collecting their paycheck so I would. Not roll the dice on this one I'm not a certified tax consultant or anything and, this video is purely entertainment however I must say as my personal recommendation it's always, better to follow your taxes properly that brings me to the second point I want you guys to take away is that whatever number you find out from.