Bitcoin & Taxes
Will I need to pay taxes if I sell Bitcoin?
The tax treatment of bitcoin transactions is complex. It is your responsibility to determine what taxes, if any, arise from your transactions involving Bitcoin on Cash App. If you sold bitcoin on Cash App, you may owe taxes relating to such sale(s). Cash App will provide you with your IRS Form 1099-B based on the IRS Form W-9 information you provided in the app. Cash App does not report a cost basis for your bitcoin sales to the IRS. In addition, note that your IRS Form 1099-B from Cash App will not include any peer-to-peer transactions involving Bitcoin on Cash App (including with other Cash App users or involving an external Bitcoin wallet).
Do I qualify for a Form 1099-B?
If you have sold Bitcoin on Cash App during the calendar year, Cash App will provide you with an IRS Form 1099-B form by February 15th of the following year of your Bitcoin sale.
Where can I locate my Form 1099-B?
You can access your Tax form in your Cash App. To do so:
Tap on the profile icon
Select Documents
Select Bitcoin
Select the 2022 1099-B
The IRS Form 1099-B will also be available to download from your desktop browser at cash.app/account.
Will the IRS receive a copy of my Form 1099-B?
Yes. Cash App is required by law to file a copy of the IRS Form 1099-B with the IRS for the applicable calendar year.
How is the proceeds amount calculated on the form?
The proceeds box amount on the IRS Form 1099-B shows the net cash proceeds from your Bitcoin sales. This means that it shows the total value of your Bitcoin sales for the calendar year BUT DOES NOT account for how much you paid to buy the Bitcoin (your cost basis).
How do I figure out my gains or losses and cost basis?
Please refer to the “Transactions CSV” located in your Cash App. To access your Transactions CSV:
Tap on the profile icon
Select Documents
Select Bitcoin
Select the 2022 Transactions CSV
You can also access your Transactions CSV from your desktop browser at cash.app/account.
Note that the Cash App CSV file may include peer-to-peer bitcoin transactions on Cash App or transactions involving external bitcoin wallets outside of Cash App and that those transactions may give rise to a taxable gain, loss, gift or other reportable event on your income tax return. You should consult with your own tax advisor regarding any such transactions.
What tax forms do I need to file for income taxes if I sold Bitcoin during the calendar year?
This depends on your individual tax situation and your specific transactions involving bitcoin. If you sold bitcoin you may need to file IRS Form 8949 and a Schedule D.
What if I buy, sell, exchange or trade Bitcoin on multiple exchanges including Cash App?
Cash App only provides records of your Bitcoin transactions on Cash App. If you buy, sell, exchange or trade Bitcoin on other exchanges you will need to obtain transaction and tax information from those exchanges.
Where can I learn more about bitcoin taxes?
The IRS maintains an FAQ section on virtual currency transactions.
The tax treatment of bitcoin transactions is complex. It is your responsibility to determine what taxes, if any, arise from your transactions involving bitcoin on Cash App. You acknowledge and agree you are solely responsible for calculating, determining, reporting and paying any applicable taxes arising from your bitcoin transactions on Cash App, including the determination of whether any gains or losses from those transactions are capital gains or losses reportable on your IRS Form 8949. Cash App does not provide tax or legal advice. If you have questions about your particular tax or legal situation you should consult a tax advisor or attorney.