Crypto enthusiasts can now receive their tax refund in crypto. The move was announced by Coinbase and Turbo tax. The two companies decided to partner up to allow their users to convert their tax returns to crypto.
Also read:7 Crypto Updates You Should Know
How to receive tax refund in crypto
Users should sign up for Turbo Tax to access the service. Moreover, the application will allow customers to file simple returns to more advanced ones. Users are advised to file their tax returns via the Coinbase section. The section is available on the Turbo tax platform. However, users who do not have a coinbase account are catered for. They are guided through a number of steps. These steps will help them deposit their tax returns to the Coinbase bank.
The tax returns can be converted to close to 100 cryptocurrencies. These includes:
- Ethereum
- Bitcoin
- Litecoin
With the use of turbo tax, one can have their tax return swapped for any crypto token. The tax returns will take close to two weeks before it is done. Once it is done, you can convert the USD to the cryptocurrency you desire.
“Now coinbase customers can get Tax refunds automatically deposited into Coinbase as USD, where it can be immediately converted into crypto when they file with Turbo tax. Customers will receive their full refund and can choose to save, invest or spend it”Read a coinbase blog.
Read also: People Are Taking Advantage of the 0% Tax in Portugal for Crypto
Turbo tax usually requests for the account details of its users. Moreover, customers will be able to receive tax reports for up to 3000 transactions from Coin tracker.
Many taxpayers are expected to take this road for their tax refund this year. However, users are urged to be careful, especially when dealing with crypto. This is because of the volatile nature of cryptocurrencies.
