TurboTax and Coinbase start offering tax refunds in Bitcoin so now users can file through TurboTax and can get directed to a coinbase account as we can see further in today’s latest coinbase news.
The news reflected on how crypto is becoming a huge part of the taxation system. This also means that oftentimes taxation was a headache for the digital asset owners as the Internal Revenue Service grows quite aggressive about collecting the crypto profits but there’s now a silver lining at the end. Starting this year, the crypto users can receive their refunds in the form of Bitcoin or other cryptos thanks to a new arrangement between TurboTax and Coinbase. TurboTax users can ask to direct any refund they are owed from the IRS or state governments directly into their accounts of the exchange and have it converted to crypto.
The news came a week after coinbase announced the launch of a free tax center which makes it easier to calculate and to report crypto profits. As a part of the announcement, Coinbase offered its customers discounts on the TurboTax software. All of this shows how crypto became a key focus in the US government search for new revenue and while BTC flew under the radar for years, the first question of the basic IRS tax form asks everyone if they own crypto now.
Owning crypto simply doesn’t trigger a tax obligation but the bill comes due if you make a profit when selling it or you stake it because it involves locking up a crypto asset for a period of time to earn yield. In the case of trading, the amount owed will depend on how long you held on an asset before selling. For Coinbase, the crypto refund announcement reflects on how the company is becoming similar to a bank and an entrancing piece of the US financial infrastructure, and in the long run, this could help the company as it continues to grapple with the regulatory agencies and still remain hostile to crypto.
As recently reported, Coinbase added Shopify CEO Tobias Lutke who has been a long-time crypto supporter. Shopify is a platform that provides online shopping tools to millions of merchants. Lutke’s appointment is expected to become official later in February. Coinbase announced that Lutke who leads Shopify will join its board of directors. Coinbase CEO Brian Armstrong touted Lutke’s support for crypto and suggested that the company could play a huge role in the crypto’s future.
