How to do your MetaMask taxes in 2024: Complete Instructions + Tools (2024)

FAQs

How to do taxes for MetaMask? ›

Blockpit is a trusted cryptocurrency tax calculator used by hundreds of thousands of crypto investors worldwide to accurately track and optimize MetaMask transactions, and calculate gains, losses and income for tax purposes.

Does MetaMask provide a tax report? No, MetaMask doesn't provide a tax report. But you can use your MetaMask transaction history to calculate your crypto taxes and create a crypto tax report.

Once you're signed up with Koinly, simply copy your MetaMask public address into Koinly, select all the blockchains you use with MetaMask, and hit import. Koinly will then import your MetaMask transactions, identify your taxable transactions, and calculate your gains, losses, income, and more.

Reporting your crypto activity requires using Form 1040 Schedule D as your crypto tax form to reconcile your capital gains and losses and Form 8949 if necessary. You report your total capital gains or losses on your Form 1040, line 7.

Any cryptocurrency capital gains, capital losses, and taxable income need to be reported on your tax return. You can report your capital gains and losses on Form 8949 and your income on Form 1040 Schedule 1 or Schedule C depending on your situation.

Other important factors to consider when researching alternatives to Metamask include security and user interface. The best overall Metamask alternative is Zengo Wallet. Other similar apps like Metamask are Coinbase Wallet, Trust Wallet, Exodus, and Coinomi.

Costs for a professional crypto CPA

A CPA will charge between $37 to $400 an hour, and many will not be qualified as crypto tax accountants. Given the complexity and shifting regulations around crypto taxes, it's important to work with a true crypto tax accountant who understands the ins and outs of the industry.

Yes. MetaMask is a trusted crypto wallet used by more than 30 million people worldwide, with security features like encryption, Blockaid, and seed phrases.

What does TaxBit do? ›

TaxBit is a cryptocurrency tax and accounting software that automates tax calculations and reports on cryptocurrency transactions. With TaxBit, users can link their exchanges and wallets to seamlessly pull their transactions through their tax engine and auto-generate tax forms.

Form 8949 tracks the Sales and Other Dispositions of Capital Assets. In other words, Form 8949 tracks capital gains and losses for assets such as cryptocurrency.

Navigate to your Metamask account and find the option for downloading your complete transaction history. Import your transaction history directly into CoinLedger by mapping the data into the preferred CSV file format. CoinLedger automatically generates your gains, losses, and income tax reports based on this data.

Koinly proudly holds SOC 2 certification, which validates our adherence to rigorous security and operational standards.

Does Phantom automatically deduct taxes? No, as of 2024, Phantom does not automatically deduct taxes from crypto trades. However, Phantom might still report your crypto transactions to your country's tax authority, like the IRS or HMRC.

At this time, decentralized wallets like MetaMask do not report to the IRS.

Claiming airdrops​

First, connect your wallet and choose as many accounts as you want. When you find an airdrop you want to claim, click the 'Claim airdrop' button underneath it. From here, you can inspect basic information about the airdrop, like the network it's on, any conditions, and registration dates.

While Metamask transactions occur on the blockchain and are publicly visible, Metamask itself does not directly report to tax authorities.