How do I report cryptocurrency losses on my taxes?

How do I report cryptocurrency losses on my taxes?

To report cryptocurrency losses, you'll need to calculate your total losses and report them on your tax return using Form 8949.

What if I lost money on multiple transactions?

You can aggregate your losses from multiple transactions and report the total on Form 8949, detailing each transaction.

Are there any specific forms I need to fill out?

Yes, you'll typically use Form 8949 to report capital gains and losses, and then summarize on Schedule D.

Can I deduct my losses from my income?

Yes, you can deduct capital losses from your income, but there are limits. You can offset gains and up to $3,000 of ordinary income.

What if I have more losses than gains?

If your losses exceed your gains, you can carry over the unused losses to future tax years.