Have you ever wondered if Binance reports to the IRS? As avid crypto traders may know, Binance hasn’t supported American traders since 2019. The company instead launched Binance.US for traders in the USA.
How, then, is a trader in the U.S. supposed to claim cryptocurrency earnings from the platform and avoid potential blowback from the federal government? Let’s find out if Binance.US reports to the IRS and go over their process for how to report crypto earnings.
Does Binance.US Issue 1099-Ks and Report to the IRS?
No, they stopped issuing 1099-Ks from 2021, so they don’t report to the IRS. According to their website:
“Previously, Binance.US took the position that it was a Third Party Settlement Organization (“TPSO”) under Section 6050W of the Internal Revenue Code and accordingly, filed Forms 1099-K for certain transactions settled on the exchange. After further evaluation and general indications from the IRS on the intended direction for future reporting, Binance.US has decided not to issue Forms 1099-K for customers on the exchange for the tax year 2021 and beyond.”
What this tells us is that you wouldn’t be receiving a 1099-K even if you sold more than $20,000 worth of crypto on Binance.US in 2021. However, this doesn’t mean you can skip reporting your transactions to the IRS on your tax return.
Then, Does Binance.US Issue 1099-MISCs and Report to the IRS?
Yes. If you earned at least $600 through staking or Learn and Earn rewards, Binance.US issues 1099-MISCs and reports to the IRS. These kinds of incomes are classified as ordinary income. Please visit this page to learn more about it.
How Do I Report Binance.US Transactions?
Here’s where your friends at Cointelli come to the rescue!
As you can see above, Cointelli gives you very detailed instructions on how to import your transaction history from Binance.US. You can sign up on Cointelli to check out our step-by-step importing method, and then log onto your Binance.US account. From there, you can create your own API key on Binance.US and copy and paste that into the page above.
Have you traded your crypto elsewhere besides Binance.US? No problem. We support more than 100 exchanges and wallets for you to simply import your crypto transactions into Cointelli the same way. You just need to follow our instructions for each exchange platform, and you’ll have your tax forms in hand and ready to submit! Please click here for more information.
Got any crypto tax questions? Ask us on Twitter! Our co-founder & crypto tax expert Daniel @Cointelli_Dan will answer you directly!