Coinbase Users Can Now Receive Tax Refunds in Crypto Through TurboTax
Both federal and state tax refunds can both be converted automatically into cryptocurrency.
Cryptocurrency exchange Coinbase (COIN) is giving users the option of receiving their tax refunds in crypto through TurboTax, the exchange said in a blog post Thursday.
- TurboTax’s website shows how users can get their refunds deposited directly into their Coinbase accounts. According to Coinbase's blog post, customers can choose to get refunds deposited into one of over 100 cryptocurrencies, from stablecoins to yield-bearing assets.
- Both federal and state tax refunds can be converted automatically into cryptocurrency, according to the New York Times, which was the first to report on the new feature.
- Coinbase users could already get a discount on TurboTax products that support cryptocurrency, as well as use TurboTax’s CoinTracker to organize and file their taxes on crypto transactions for free or at a reduced rate for a large number of transactions.
- Coinbase is trying to make it easier for customers to integrate their finances with its crypto trading platform. In September it announced it was allowing its U.S. customers to deposit all or part of their paychecks in crypto or dollars without a fee.
- Recently, tax software firm TaxBit launched the TaxBit Network, a supported network of 20 crypto companies – including Coinbase, FTX.US, Binance.US, Gemini and SuperRare – that will allow clients of supported institutions to access crypto tax forms for 2021 at no charge.
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