It’s crypto tax time!
While it’s not most people’s favorite time of year, it’s still incredibly important for you to understand the tax implications of holding, selling, staking, and other actions in the crypto-verse.
Unfortunately, crypto tax regulations are in a bit of a weird place.
More than ever before, the government is starting to pay attention to what’s happening in the digital world — and new regulations could be on the way.
What does this all mean for you?
This guide will break it all down in simple terms to help you prepare for the present state of crypto taxes and the future.
Let’s start with the crypto tax basics.
The IRS treats crypto like property**. That means every transaction has tax implications:
When don’t you need to worry about crypto taxes?**
Well, if you simply buy and hold, you can let out a sigh of relief as no taxes are owed. Additionally, if you’re just transferring coins from one of your wallets to another, that’s also free from taxes.
Reporting requirements for profits and losses go on Form 8949* and Schedule D, while crypto income is reported on Schedule 1 or Schedule C* (all links will take you to irs.gov).
Keep in mind that this is a very basic and surface-level overview of the crypto tax landscape.
Always consult a tax professional to better understand your specific tax situation and obligations. Moreover, consider crypto tax software, which can help simplify and help you better understand all your transactions over the course of the year.
Okay, so what changes are on the horizon for crypto holders, traders, investors, and users?
Let’s start with this: as of writing this article (February 2025), there’s a lot going on in both the crypto world and the federal government. A lot of open questions are in the air, so things may have changed by the time you’re reading this.
Crypto taxation is a hot topic.
Here is what we know so far:
Many of those proposed changes have come up in the last few years. But, with the change of administration in January 2025, there could be some pretty significant directional shifts for crypto tax regulations in the United States.
A surprise twist in the tax debate comes from Eric Trump, the current President’s son.
He has floated the idea of a “zero crypto tax policy.” The argument? Eliminating taxes on crypto gains* (learn more on forbes.com) could drive innovation and investment while establishing the U.S. as a global crypto leader.
Sounds great, right? But there’s a catch:
At this point, this plan is more of a possibility than anything actually concrete. However, it does signal that the political landscape around crypto taxation is shifting quite dramatically.
The recent executive order titled "Strengthening American Leadership in Digital Financial Technology," signed by President Trump on January 23, 2025,* (as mentioned on whitehouse.gov), is somewhat of a U-turn for U.S. cryptocurrency policy.
This order aims to promote the growth and use of digital assets and blockchain technology across all sectors of the economy, revoking previous directives and prohibiting the development of a central bank digital currency (CBDC).
While these developments suggest a much more crypto-friendly environment, specific details around tax policies for digital assets are undefined.
This uncertainty means you should stay informed:
If there is a main point you should draw from this article, it’s to pay attention to possible changes.
While there has been a significant shift in terms of optimism in the crypto industry, we’re still very early on in the new administration. Keep your eyes on the news and possible policy changes, and always keep good records for tax time.
Okay, that’s the short and sweet of crypto taxes for 2025. But what if you’re expecting a refund?
We know that this isn’t exactly related to changes in crypto taxes, but it is an important part of the season for many people.
So, what should you do with your tax refund?
If you’re considering using a portion of your refund for investing, consider Bitcoin. You could put this in a low-interest-bearing account, but if tax laws change in Bitcoin’s favor, early adopters could benefit the most.
The easiest way to purchase Bitcoin? A Bitcoin ATM.
To make a purchase, all you need is your phone, your cash, and some personal details for verification purposes. The best part is that using a Bitcoin ATM is incredibly convenient.
Here at Bitcoin Depot, we operate the largest network of Bitcoin ATMs across the U.S., Canada, and Puerto Rico. No matter where you are, you’re never too far away from a seamless cash purchase of Bitcoin.
The crypto tax landscape is changing. With the new administration taking a pro-crypto stance, regulations could shift fast.
Your best strategy is to stay informed and keep records of all your crypto transactions.
Even with a pro-crypto administration, tax obligations won’t disappear overnight. So, watch for executive orders, congressional proposals, and IRS guidance updates.
Want to use your incoming refund to purchase Bitcoin? We’ve got you covered.
Head to one of our over 8,400 (as of February 2025) Bitcoin ATMs to start your crypto journey today. Find your nearest Bitcoin ATM using our convenient locator tool.
*The information provided above is for informational purposes only. The inclusion of any particular 3rd party site does not imply an endorsement, sponsorship, or partnership between Bitcoin Depot and the 3rd parties listed above. While Bitcoin Depot endeavors to ensure the accuracy and relevance of the information provided, we do not guarantee the reliability of any 3rd party’s information.
** The information provided above is for informational purposes only. While Bitcoin Depot endeavors to ensure the accuracy and relevance of the information provided, it does not constitute tax advice, and you should seek a tax advisor to better understand applicable tax laws and regulations.