April 15, 2025, is an important deadline for those paying taxes in the U.S.—including anyone who traded, sold, or earned crypto in 2024. 

The IRS has increased its focus on digital assets, and failing to report crypto activity can lead to penalties or audits.

This guide covers the key rules for crypto taxes in the U.S., the latest IRS regulations, how to calculate gains and losses, common mistakes to avoid, and tools individuals can use to simplify the process.

2024 Crypto Tax Rules and IRS Regulations

The tax year runs from January 1 to December 31 in the U.S. Individuals must submit their tax returns by April 15 of the following year unless that date falls on a weekend or federal holiday. In that case, the deadline shifts to the next business day. 

This means that all crypto users must track and log every transaction throughout 2024 to accurately report them by the April 15, 2025, tax filing deadline.

However, the IRS automatically extends the two-month deadline to June 15, 2025, for those living abroad, which automatically shifts to June 16. This extension applies to US citizens or resident aliens living abroad. Even without a US domicile, they must still report worldwide income and follow IRS rules.

The IRS states that if any of these federal deadlines fall on a weekend or a public holiday, it will be delayed to the next business day.  

It is very important to note that the extension to file is just that—an extension to do the paperwork, not an extension to pay. Taxes owed are still due by the April 15 deadline. Penalties and interest can accrue if individuals do not pay their taxes by then. 

Anyone expecting to owe taxes should pay their estimated tax liability by April 15th, including any crypto gains, and file for an extension by that date if necessary.

Understanding Taxable Crypto Transactions

The first thing to clarify about crypto taxes is that not every action creates a tax obligation. The IRS only requires reporting for specific types of activity.

Crypto Taxable Events

These events must be reported to the IRS and may result in capital gains or income tax depending on how individuals acquire the assets.

• Selling crypto: Exchanging digital assets for U.S. dollars or other fiat currencies is taxable. ​
• Trading crypto: Swapping one digital asset for another is taxable. ​
• Spending crypto: Using digital assets to purchase items or services triggers a taxable event. ​
• Receiving crypto or tokens:  Earnings from staking, mining, hard forks, and airdrops are taxable. 

Non-Taxable Transactions

Some crypto activities do not create a tax event, and individuals do not need to report them as income or gains.

• Transferring between personal wallets: Users can move digital assets between wallets they own without triggering a taxable event.
• Holding crypto: Keeping crypto in a wallet without selling or spending it does not trigger a tax obligation. However, to avoid confusion,  if crypto is received as income—through mining, staking, or payment—it must be reported and taxed based on its fair market value.
• Donating crypto: Donating to IRS-recognized charitable organizations may be tax-deductible.
• Gifting under $18,000 in 2024: Users could gift up to $18,000 per recipient without incurring a gift tax or up to $36,000 if married couples elect gift splitting (a tax provision allowing them to treat the gift as if each spouse gave half). The couple must meet certain rules and requirements for this condition to apply. 

How To Calculate 2024-25 Crypto Capital Gains and Losses in US

When users sell, trade, or spend crypto, they must calculate capital gains or losses based on the difference between the purchase and selling prices. The IRS requires this for each taxable event involving digital assets.

• Determining the cost basis: This is the original purchase price of the crypto, including any transaction fees.
• Identifying the fair market value at disposal: Individuals should check the asset’s value during sale, trade, or use.
• Calculating the difference: To find the gain or loss, subtract the cost basis from the fair market value.
• Classifying the gain or loss: If the individual held the asset for over a year, it is a long-term capital gain. It is a short-term gain taxed at ordinary income rates if held for one year or less.

Reporting each transaction: Individuals must list every taxable crypto transaction using IRS Form 8949 and summarize them on Schedule D.

Step-by-Step Guide to Filing Your Crypto Taxes for 2024-2025 

The following steps outline how individuals can gather, organize, and report their crypto activity for the 2024 tax year. 

Step 1: Gathering Crypto Transaction Data

This includes every purchase, sale, trade, swap, reward, and fair market value in USD at the time. Users should download their transaction history from every exchange, wallet, or platform. 

Using spreadsheets or dedicated crypto tax software for accurate reporting, such as CoinTracker or Koinly, can help organize the data.

Step 2: Categorizing Each Transaction Type

Once all transaction data is collected, users must review and label each transaction based on its type—such as buys, sells, transfers, income, gifts, and payments. 

This step ensures accurate tax treatment, as the IRS classifies transactions differently depending on their nature.

• Capital gains apply to sales, swaps, and trades.
• Ordinary income applies to mining rewards, staking, interest, and airdrops.
• Transfers between personal wallets are not taxable but should still be tracked.

Properly categorizing transactions helps avoid errors in tax reports and ensures users comply with IRS rules.

Step 3: Calculating Gains and Losses

After categorizing, users must calculate each taxable transaction’s capital gains or losses. This involves subtracting the cost basis (what the asset was bought for, including any fees) from the proceeds (what it was sold for or the fair market value when traded or spent). 

Users should also mark the acquisition and disposal dates to determine whether each transaction is treated as short-term or long-term, as explained before.

Accurate gain/loss calculations are essential for completing IRS Form 8949 and Schedule D.

Step 4: Reporting 2024 Crypto Transactions on IRS Forms

After calculating gains, losses, and income, individuals must report the information using the appropriate IRS forms. Each form covers a specific type of transaction and must be filled out correctly to avoid errors or penalties.

Form 8949

Reporting capital asset transactions. Required details include:

• Description of the asset (e.g., Bitcoin, Ether)
• Date Acquired
• Date sold or disposed
• Proceeds from the transaction
• Cost basis
• Gain or loss

The totals from this form must reflect any summaries received from exchanges, such as transaction history.

Schedule D

Schedule D summarizes the short-term and long-term capital gains or losses in Form 8949. The net total is then transferred to Form 1040 as part of the individual’s overall tax return.

Schedule 1 or Schedule C: Reporting Crypto Income

Schedule 1 reports crypto income, such as staking rewards, airdrops, or mining, which is treated as additional income.

Schedule C applies to crypto activity that qualifies as a business, such as regular mining operations or crypto-related services.

In both cases, individuals must report the fair market value of the crypto at the time it was received.

Form 1040: Main Tax Return

Form 1040 is the central document for filing federal income taxes. It includes:

• Net capital gains or losses from Schedule D.
• Crypto-related income from Schedule 1 or Schedule C.

It also includes a required digital asset question at the top of the form. Every taxpayer must answer this question, even if no taxable crypto activity occurred.

State Tax Forms

Some states require individuals to report crypto transactions on their state returns. State-level rules vary, so individuals should check with their state tax authority for specific instructions.

Common Crypto Tax Mistakes to Avoid

Many users misreport or overlook taxable events. Missing wallet transfers, mislabeling income as capital gains, or ignoring airdrops can lead to errors. Failing to report at all may trigger IRS audits or penalties. Using consistent records and reliable tax tools helps reduce mistakes.

Potential Deductions and Crypto Tax-Saving Strategies

Crypto losses can offset gains, reducing taxable income. Users can also deduct certain mining expenses or fees tied to trading. Holding assets for over a year lowers capital gains taxes. Planning trades with taxes in mind helps minimize the final bill.

New Crypto Tax Rules for 2025-26

No major rule changes apply to the 2024 tax year filed in 2025. Users must continue to follow existing IRS rules when reporting crypto sales, income, and swaps. 

Some updates will apply to the 2025 tax year, including new broker reporting rules (Form 1099-DA) and an annual gift tax exclusion increase from $18,000 to $19,000 per recipient. These changes will apply to returns filed in 2026.

Individuals should stay informed and follow guidance from the IRS or licensed tax professionals.

Conclusion

Reporting crypto activity for the 2024 tax year requires careful tracking, correct categorization, and accurate filing using the right IRS forms. 

Mistakes or omissions can lead to penalties, but the process becomes manageable with proper tools and records. Staying informed about tax rules, keeping organized documentation, and consulting professionals when needed can make tax season less stressful. 

Keep everything recorded—and stay ahead of future changes.

FAQs

What happens if individuals don’t report crypto to the IRS?

Failing to report crypto activity can lead to audits, penalties, and interest on unpaid taxes.

The IRS treats digital assets as property, and any gains, losses, or income must be included in the annual tax return. If individuals omit or misreport crypto transactions, the IRS may issue notices, charge fines, or pursue further enforcement actions.

Do individuals still have to pay by April if they file in October?

Yes. The IRS grants more time to file, not more time to pay. Even with an extension to October 15, individuals must pay any taxes owed by April 15. Missing the April payment deadline can trigger penalties and interest.

To avoid extra charges, individuals should estimate their 2024 taxes, pay by April 15, and submit the return later if necessary.

Are NFTs and utility tokens taxable?

Receiving NFTs or utility tokens may be taxable, depending on how they are acquired. If individuals receive them as payment for services, rewards, or through airdrops, the IRS treats them as income, and they must report the fair market value at the time of receipt.

Holding or transferring non-fungible tokens (NFTs) or utility tokens between personal wallets is not taxable, but selling or trading them can trigger capital gains taxes.

How much can individuals gift without paying tax in 2025, are there any updates to this new calendar year?

Individuals can gift up to $19,000 per recipient without incurring a gift tax, and married couples who elect gift splitting can gift up to $38,000 per recipient. This sum is due to be filed in 2026, and it is an update from 2024.

Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.

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