Crypto payroll provider Bitwage and software developer Consultabit have added a new tax tool to their bitcoin investment calculator.
- Announced Wednesday, the new tax add-on will help crypto investors stay on top of their reporting obligations by providing an estimate of federal taxes due on their bitcoin gains.
- The calculator presents a total owed to the Internal Revenue Service (IRS) based on amounts invested, annual income and marital status.
- Additionally, Bitwage and Consultabit have added a button allowing investors to view their gains and taxes on one-time purchases.
- The tax calculator feature comes at a time when the Internal Revenue Service – the U.S. tax agency – is ramping up efforts to stop suspected avoidance on crypto investment tax, even against the advice of its own watchdog.
- Bitwage and Consultabit launched the bitcoin dollar cost average calculator in January.
- The payroll provider enables employers to pay their workers in bitcoin and several other cryptocurrencies as a way to quickly move money across borders.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.