Credit Karma: Almost Nobody Reports Cryptocurrency Profits

Users of Credit Karma's tax preparation software appear to be underwriting their cryptocurrency holdings, according to the data provided by the company.

Less than 100 of the first 250,000 federal tax returns filed using the service reflected cryptocurrency gains or losses, the company reported. A spokesperson told CoinDesk in a statement that "the bitcoin earnings report [is] still at negligible levels."

In addition, Credit Karma compared the reporting levels of February 2018 and April 2018. Less than 100 people reported bitcoin gains or losses of the first 250,000 users who filed, approximately 0.04 percent. The spokesperson added:

"With the tax deadline less than a week away, we reviewed the analysis and observed the 250,000 most recent taxpayers on the Credit Karma Tax platform and while we saw an increase of more than 100 percent in the rate of those who filed, the Total remained as a small fraction with less than 100 people out of the 250,000 who reported earnings. "

However, 5 percent of Americans reported owning cryptocurrencies in a survey, according to TechCrunch.

While investors may not report profits, the Internal Revenue Service (IRS), the US federal tax office, does not have any income. UU., Consider that bitcoin and other cryptocurrencies are property. In other words, investors who sold cryptocurrency units in 2017, to win or lose, must report those transactions on a Form 8949.

The mining cryptocurrency is also a taxable event, regardless of whether the resulting holdings are sold or not. Hard forks that result in new holdings of cryptocurrencies, such as the bitcoin cash fork, are subject to tax in at least some cases, but a clear IRS guidance is missing.