As part of a partnership with cryptocurrency exchange Coinbase, tax filing software TurboTax will now allow taxpayers in the United States to receive their refunds directly in cryptocurrency.
Coinbase stated via a blog post on Thursday that users who filed their taxes using TurboTax will be able to receive any refunds in cryptocurrencies such as Bitcoin (BTC) and other tokens supported by the platform. Users could deposit money to their Coinbase accounts in fiat or have it immediately converted to crypto with no trading fees, according to the exchange.
Coinbase covers both state and federal income taxes
A report by the New York Times says that the offer by Coinbase included both state and federal income taxes. The crypto exchange previously teamed with tax calculating platform CoinTracker to help users fill out documents for declaration of capital gains and losses on their tax returns.
Exchanging, buying, or selling crypto is a taxable event under current U.S. law and is likely subject to a 20% capital gains tax. Keeping assets in your possession for a year or more effectively keeps them tax-free.
The deadline for filing taxes in the United States is April 18, and many platforms are ramping up their offers to help people manage the necessary documents and avoid possible audits. TaxBit, a crypto tax compliance provider, stated in January that it was developing a network of U.S.-based crypto companies to provide users with tax reporting data.
Many regulators all over the world are imposing a tax on crypto incomes as a solid step towards a better regulatory framework. India recently hinted that it would impose a 30% tax on crypto investors, which is highly criticized by people on social media platforms like Twitter.
The exchange giant has recently been found to partner with multiple sectors all over the world. A few days back, Mastercard joined hands with Coinbase for facilitating NFT payments to its users.