Cash App Crypto Tax Filing Guide 2023 🇺🇸

Getting Started

If this is your first time using Cash App Taxes for the year, you will need to complete some general information. Answer this to the best of your ability, but don’t worry too much about it because you can always come back to it. You should pay special attention, however, to the question about digital assets, which if you can answer yes to it, you are obligated to answer yes.

Reporting Your Gains

Gains Summarized

The easiest way to report your cryptocurrency gains and losses is to summarize your gains into short and long term. While this will save you a lot of time, you will need to send an attachment with the detailed information.

1. In the Income section, scroll down to “Investments” and select “Start”. If you do not see this section, click on “See More” next to “Looking for something else?” and select “Gains or losses from investment”.
2. On the following screen select “Stocks, Mutual funds and bond sales, (1099-B)”.
3. Select “Summarized entry” and enter all required information. If you are filing with your spouse, you will need to select who it belongs to, enter the description, proceeds and cost basis. Page 1 of your accointing tax report will show you these key figures. Select the category, either short-term C or long-term F, unless you received a 1099-B for your crypto gains. If you did receive a 1099-B, select the appropriate option and make sure to read our Crypto Forms 1099 article. Click “Continue” when done.
4. You will now be back at the summary screen.  If you need to add more sales, select “Add more sales”, otherwise click “Continue.” In this example, we entered our short-term sales therefore we will repeat the process to enter our long-term gains. As short and long term gains are taxed differently, you must always break out the short from the long at a minimum and remember to send in your attachment. Unfortunately Cash App Taxes does not support attachments for electronic filing, so you will have to mail Form 8453.

For additional information on generating and filing your attachment to form 8949, check out our Crypto Gains – Attachments to your 8949 guide.

Gains in Full Detail

If you wish to enter all your gains manually:

1. In the Income section, scroll down to “Investments” and select “Start”. If you do not see this section, click on “See More” next to “Looking for something else?” and select “Gains or losses from investment”.
2. On the following screen select “Stocks, Mutual funds and bond sales, (1099-B)”.
3. Select “One sale at a time” then enter all the required information on your sale –  select who this belongs to (if you are filing with your spouse), enter the description, date acquired, date sold, proceeds, cost and then select the category (which will be either “Box C” for short-term or “Box F” for long-term, unless you received a Form 1099-B) then click “Continue”. It’s important to remember that if you select this option, you must enter every single taxable sale and trade provided in your detail. You can find this information by reporting based on your ‘Form8949-Short-Term-Disposals’ and ‘Form8949-Long-Term-Disposals’ csv files.
4. You will now be back at the summary screen. Repeat this process as many times as needed to enter all your sales.

Gains with Spreadsheet View

If you wish to enter all your gains manually, you can also use Cash App Taxes spreadsheet input to make things simpler. If you want to do this, follow the steps below:

1. In the Income section, scroll down to “Investments” and select “Start”. If you do not see this section, click on “See More” next to “Looking for something else?” and select “Gains or losses from investment”.
2. On the following screen select “Stocks, Mutual funds and bond sales, (1099-B)”.
3. Select “Spreadsheet entry” then click “Continue”.
4. On the next screen you will see a spreadsheet view – enter all your sales into this spreadsheet and select “Add Rows” if needed.  For each sale, select who it belongs to, category (which will be either “Box C” for short-term or “Box F” for long-term, unless you received a Form 1099-B, in which case refer to the FAQs), date acquired, date sold, proceeds and cost. Once you have entered all your sales, scroll to the bottom and click “Continue”.

Reporting Your Crypto Income 

We now have to enter any other taxable crypto income such as mining, staking, airdrops or hard forks. Keep in mind that if your income is from a trade or business, such as a Bitcoin mining operation, you will need to report as such. For everyone else:

1. In the Income section, scroll down to “Other income” and select “Start”. If you do not see this section, click on “See More” next to “Looking for something else?” and select “Other income”.
2. On the following screen select “Other miscellaneous income”.
3. On the next screen, navigate to the bottom by the “Other income” section and enter a description of the income and amount.
4. While Cash App Taxes does not have a separate 1099-MISC input screen, it is best practice to separately list any income on a 1099-MISC, as the example demonstrates, where we break out the amount reported on a 1099-MISC from other income.
5. Don’t forget to report any crypto taxable income for which you did not receive a 1099-MISC. You will find your total taxable income on your accointing tax report page 1, but pay careful attention to not double report any income included on your tax report and also reported separately on a 1099-MISC. Refer to our Crypto Forms 1099 article for more information on 1099s.
6. If you did not receive any 1099-MISC forms, you can simply enter all your other crypto income in one line such as “Various crypto income”, and enter the total in USD based on your accointing tax report taxable income total.

For additional information on filing your crypto taxes, including 1099 questions, extending your tax return and attachments, check out our Crypto Tax Filing Guide 2023.

The information contained in this guide, including any supplemental materials, is for general information purposes and does not constitute financial, investment, legal or tax advice. The present content is not intended as a thorough, in-depth analysis, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. Please consult your tax advisor.