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 prepare their income taxes across Canada, the US and Australia.
In an announcement seen by CoinTelegraph, CoinTracker noted that the partnership will allow US H&R Block clients to use CoinTracker and automatically fill out Form 8949 regarding crypto trades. This form is submitted during tax season to report capital gains and losses from investments.
Previously, users had to cut and paste crypto trading data into each form field on the H&R Block app, which could lead to errors. Under the new integration, H&R users can import their crypto transactions from “most” exchanges into their H&R Block tax returns.
H&R Block is an American tax preparation company founded in 1955. In 2020, H&R Block had around 20 million tax clients.
The two companies also made some additional upgrades for the 2023 tax season as a result of the integration, including the offer of free CoinTracker accounts to all H&R users who have fewer than 25 crypto trades, as well as certain discounts for other H&R users.
In a statement, CoinTracker COO Vera Tzoneva said the new integration should reduce the hassle of paying crypto taxes, saying:
“The crypto tax filing process is far too complex. We remain fixated on delivering security and the necessary tools for all crypto users. Partnering with H&R Block is a big step toward realizing this vision.”
Related: Bitcoin-friendly Cash App integrates TaxBit in the midst of tax filing season
Tax season is seen by some as a confusing and complex time for some crypto traders. While legally defined “cryptobrokers” are required to issue a Form 1099-B to each client, the Internal Revenue Service has not yet clearly explained which firms fall under the definition of “brokers.”
Most centralized exchanges produced the necessary forms for users, but not decentralized financial protocols. This has led some taxpayers to rely on blockchain explorers to determine gains and losses.
Even if a taxpayer only uses centralized exchanges, tracking gains and losses can still be complicated if the user transfers crypto between exchanges, as this can cause transactions to appear on multiple forms.
CoinTracker’s crypto tax software is one of many.
Over the past few years, several crypto tax software solutions have been offered, 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 their transactions.
However, not all solutions are integrated with tax preparation platforms such as H&R Block, TurboTax, FreeTaxUSA, etc.
