CoinTracker integrates with H&R Block to offer crypto tax preparation
Crypto tax software provider CoinTracker is integrating its software with H&R Block, a company that helps millions of clients calculate their income taxes in Canada, the US and Australia.
In an announcement seen by Cryptooshala, CoinTracker noted that the partnership will allow American H&R Block clients to use CoinTracker and automatically complete their Form 8949 regarding crypto transactions. This form is filed during tax season to report capital gains and losses on investments.
Previously, users had to cut and paste crypto trading data into every form field in the H&R Block app, which could lead to errors. As part of the new integration, H&R users can import their cryptocurrency transactions from “most” exchanges into their H&R Block tax returns.
Good news for cryptocurrency holders. Filing crypto taxes has never been easier. File with H&R Block Online, connect to Cointracker and just click Import. More intuitive. More accurate. Learn more about how cryptocurrency can affect your taxes: https://t.co/XYjzra3z5B pic.twitter.com/6gGXlyNyr0
— H&R Block (@HRBlock) March 6, 2023
H&R Block is an American tax preparation company founded in 1955. In 2020 H&R Block had about 20 million tax clients.
The two companies have also made some additional updates for the 2023 tax season as a result of the integration, including offering free CoinTracker accounts for all H&R users with less than 25 crypto trades, as well as certain discounts for other H&R users.
Vera Tsoneva, COO of CoinTracker, said in a statement that the new integration should reduce the hassle of paying crypto taxes, stating:
“The process of filing cryptocurrency tax returns is too complicated. We remain focused on providing peace of mind and essential tools for all cryptocurrency users. The partnership with H&R Block is an important step towards realizing this vision.”
Bitcoin-Friendly Cash App Integrates TaxBit During High Tax Filing Season
Tax season is seen by some as a confusing and challenging time for some crypto traders. While legally defined “crypto brokers” are required to issue a Form 1099-B to every client, the Internal Revenue Service has yet to clearly explain which firms fall under the definition of “brokers.”
Most centralized exchanges created the necessary forms for their users, but not decentralized finance protocols. This has caused some taxpayers to rely on blockchain researchers to determine their profits and losses.
Even if the taxpayer only uses centralized exchanges, tracking profits and losses can become difficult if a user transfers cryptocurrency between exchanges, as this can result in transactions appearing in multiple forms.
Cryptocurrency taxation software CoinTracker is one of many.
Over the past few years, several cryptocurrency tax software solutions have been proposed, including CoinTracker, Koinly, Taxbit, CoinLedger, TokenTax, and others. These products allow the user to enter their exchange and wallet accounts into a single interface that tracks all of their transactions.
However, not all solutions are integrated with tax preparation platforms such as H&R Block, TurboTax, FreeTaxUSA, etc.
Credit : cointelegraph.com