Three-Quarters Of Crypto Investors Are Not Prepared For Tax Filings: Survey

Even as the tax filing deadline is approaching fast, a new survey has found that around three-quarters of cryptocurrency investors in the U.S. are still not prepared to file taxes on their digital assets

A Cointracker survey released Thursday showed that 74% of those surveyed were looking for more help from their exchanges on how to manage their crypto taxes as of March 27.

While the April 18 tax filing deadline is approaching, not many are sure of how to prepare their crypto-specific tax returns.

"Two in five crypto owners (40%) don’t know paying taxes is required for selling cryptocurrency for fiat currency. Of the total respondents, nearly half (48%) did not know that selling or trading an NFT is a taxable event," the survey noted.

The survey noted that 35% of respondents have not set money aside for their cryptocurrency capital gains taxes for 2021 while 8% said they weren’t sure. At the same time, 74% of respondents wanted more information on how to file crypto taxes from their exchanges.

CoinTracker is a digital asset portfolio manager that allows investors to view their crypto holdings across different exchanges and wallets.

“Staying tax compliant has become even more challenging given the continued adoption of cryptocurrency,” said Jon Lerner, CEO and co-founder of CoinTracker.

“The average CoinTracker user has crypto transactions in close to three (2.93, to be precise) exchanges or wallets, and 75% of users added more than one exchange or wallet in the last 12 months. Using multiple exchanges and wallets drastically increases tax complexity for crypto users."

"We ran this survey to better understand the most common knowledge gaps with crypto taxes. We’ll apply the lessons learned towards helping crypto users file taxes more accurately and seamlessly, thus saving them time and money.”