How to Pay Binance.US TaxesFor our friends who use Binance.US as one of their platforms, we’ve compiled a little guide on how to pay taxes for the crypto you’re holding.
How cryptocurrency taxes work
The IRS treats cryptocurrencies as “property.”
This means gains and losses from selling or trading cryptocurrencies are subject to tax reporting.
If you are trading crypto on Binance.US, you must report your transactions for tax purposes. All data, including profits and losses, are required.
The final amount that you owe is determined by your income and tax rate.
Now, let’s take a look at how to properly report your cryptocurrency transactions to the IRS and the steps required to prepare your tax return.
**Please refer to the Tax Guide for details such as the relationship between the IRS and cryptocurrency, calculation of cryptocurrency gains and losses, and tax rates
Why can't Binance.US calculate my taxes?
Binance.US investors are responsible for their own tax calculations!
To calculate your taxes, you must first figure out how much you made from trading crypto. You will need your complete transaction history and a record of every sale and purchase you have made.
If you use multiple platforms, this can quickly get tricky. Exchanges, wallets and other platforms can only provide investors with their own individual transaction history. This means you will have multiple transaction histories to juggle simultaneously.
Consider the following example: you moved a cryptocurrency in your wallet to an exchange and then sold it. To determine the exact cost, you would require transaction history for both your wallet and exchange as they do not share information. If you fail to do so, or fail to do so correctly, this may lead to improper income reporting. Possible results include paying more taxes than you need to, fines, and even criminal charges.
Therefore, it is absolutely critical for crypto traders to accurately collect and calculate transaction details on all platforms that they have used.
Why You Need Crypto Tax Software
Think about the time it would take you to organize hundreds or even thousands of transactions on various platforms and then review them for accuracy. Also remember that improper tax filing can lead to heavy penalties from the IRS. Stressed out yet?
The good news is that crypto tax software can make this painful process quick and easy by aggregating hundreds and thousands of transactions into a single platform, then reviewing them for accuracy and calculating the most optimal tax liability. In just a couple of minutes, you can get an accurate tax report that can be downloaded and imported into your tax filing software of choice.
OK, So How Do I Calculate My Crypto Taxes?
If you want to see how Cointelli crunches the numbers and how crypto tax reporting works, we’ve got you covered! We’ve written an articles that’ll give you the basics of how this process works!
Learn more about our crypto tax software here.
How to Import Your Binance.US Data to Cointelli
The first step toward calculating your overall crypto taxes is to import your data onto our platform. Cointelli supports Binance.US in its calculations, so no worries! You only have to do one of two things to get your Binance.US data uploaded:
Option 1: Use your APIs to connect your Binance.US account to Cointelli! It’ll just pull the numbers required so that we can do the math properly and get you accurate results.
Option 2: Import your Binance.US transaction data in excel CSV file format! We’ll give you a CSV template to properly format your data before you upload it to our Cointelli platform.
Either way, you’ll be able to get your crypto data from Binance.US onto Cointelli in a snap! All you have to do is let us take care of the number-crunching - sit back and relax!
1. Instructions for Binance.US API Import
The description below explains how to create an API key in Binance.US.
This API key is used to link your account and to automatically import transaction history to Cointelli.
We only need read-only access to your account to prepare a tax report.
Please provide read-only access that grants NO authority to access your private keys or to move your funds.
1. When uploading the Binance US API key, you can't upload quick buy/quick sell transaction types. If you have done quick buy/quick sell transactions, please manually enter your transaction.
2. From February 19th, 2021, Binance US has limited importing cryptocurrency purchases if the user purchased them directly using a debit card, bank account (ACH), or credit card.
3. Delisted coin transactions cannot be synchronized via API. Please upload the CSV file instead.
Log in to your Binance.US account. (https://www.binance.us/en/home)
In the upper right corner, click My Account → API Management.
Enter Cointelli import as the key label and click Create.
Enter the SMS authentication code.
You will receive an API Key generation link in your email. Click Go to email and verify.
Check your email and click Confirm API Key Creation.
Copy the API Key and API Secret, then paste them to Cointelli.
Return to Binance.US.
① Click Edit restrictions.
② Set API restrictions to Can Read
③ Set IP access restrictions to Unrestricted.
2. Instructions for Binance.US File Import
Log in to Binance.US. (https://www.binance.us/en/home)
On the top right, click Profile → Settings.
On the top, click the Basic Info tab.
Scroll to the bottom and click Export Statement.
Select Yearly Report and generate a separate report for each year you had transactions.
- Scroll down on the pop-up window to see the progress on the report you generated.
- Reports take some time to generate. When the status changes from “Generating” to “Download” click Download to get your report.
- The download will be available for 90 days.
Unzip the file and upload it to Cointelli.
(Please import the downloaded files as is, without editing the file name, extension, content, etc, to avoid errors.)