Cryptocurrency taxes are paid at both the federal and state levels in the U.S. For federal taxes, report crypto gains on Form 1040, Form 8949, and Schedule D. You can pay through IRS Direct Pay, EFTPS, or by mailing a check.
For state taxes, payments can be made through your state’s Department of Revenue website or by check. Note that acceptance of third-party processors like BitPay for crypto-to-fiat conversion is not standardized and varies by state; always check with your state’s Department of Revenue for specific guidelines.
How to Pay Crypto Taxes
- Federal Taxes:
- Report crypto on Form 1040, Form 8949, and Schedule D.
- Pay through IRS Direct Pay, EFTPS, or mail a check.
- State Taxes:
- Check if your state taxes crypto gains.
- Pay via the state’s Dept. of Revenue or by mailing a check.
- Some states may accept third-party processors like BitPay; confirm directly with your state’s Department of Revenue.
Payment Methods Table
| Payment Method | Federal (IRS) | State Tax |
| Online Payment | IRS Direct Pay | State Dept. of Revenue websites |
| Electronic Payment | EFTPS | Some states offer similar systems |
| Credit/Debit Card | Third-party processors (PayUSAtax) | Varies by state |
| Check with Form 1040-V | Check to state tax authority |
Important Notes:
- Check with your state’s Department of Revenue for specific rules regarding cryptocurrency tax payments and acceptable methods.
- Be aware of fees associated with third-party payment processors if you choose to pay federal or state taxes using credit or debit cards.
Frequently Asked Questions
Do I have to pay federal and state taxes on crypto?
Yes, both may apply, depending on your location.
Can I pay my taxes with cryptocurrency?
The IRS doesn’t accept crypto directly, but some states and third-party services like BitPay may accept crypto payments. Confirm with your state’s guidelines.
What forms do I need to file crypto taxes?
You’ll need Form 1040, Form 8949, and Schedule D for federal taxes.
Do I have to report every crypto transaction?
Yes, each taxable event, such as selling, trading, or using crypto, must be reported on your tax return.
Do I pay taxes on crypto if I hold it?
No, holding cryptocurrency is not a taxable event. Taxes are only due when you sell or trade it.
What tax rate applies to crypto gains?
Crypto gains are taxed as capital gains. The rate depends on how long you held the asset—short-term or long-term.
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When to Pay Crypto Tax?
