On your 1040 tax form, the one used to report individual income, you'll have to answer "yes" or "no" to the following question: Without dedicated software, calculating crypto taxes is a laborious endeavor. Users must spend hours collecting CSV files from different exchanges, formatting the data, double-checking market prices, and more. Top-rated examples of tax software work on autopilot. Instead of tedious uploading, they auto-import all your transactions from wallets and exchanges to produce ready-to-file reports. Here are ten popular examples of crypto tax services in 2023. If you pay your employees in crypto, you must report all payments on Form More information W-2. These payments are also subject to withholding for federal income and payroll taxes. You must also file a report if you pay a U.S. contractor more than $600 worth of crypto in a tax year. In this case, you have to report the payments to the IRS using Form 1099 and/or Form 1096.