Automate your crypto pay for play game taxes
(Edited)
Dear Splinterlands Player:
There is a community on Hive devoted to taxes and recently this topic has been raised; How to Do Crypto Taxes? It seems complicated in the USA, but there are options to have someone do this for you. Automating your crypto gaming taxes makes it simple to report earnings and stay on the right side of the tax rules.
Introduction:
The government treats digital coins and NFTs like property, which means you usually pay taxes in two different ways:
- Income Tax: When you earn rewards or tokens in a game, you pay tax on what they are worth in US dollars the exact day you get them. Casual players report this as extra income, while serious players who treat gaming like a business report it as self-employment income.
- Capital Gains Tax: When you trade those earned tokens for another crypto, sell them for cash, or buy in-game items, you pay tax on any profit made since you first received them.
Simple Steps to Automate Your Taxes
1. Collect Your Wallet Addresses
- Gather all public wallet web addresses you use for your games (like MetaMask, Solana, or Polygon).
2. Pick a Tax Program
Choose an online tax website that automatically connects to your wallets, reads your game history, and tracks exact prices:
* Koinly: Connects to wallet addresses to read token claims and trades.
- Cost: Free to track history; tax reports cost between $49 and $199+ per year based on your activity.
* CoinLedger: Built specifically to track play-to-earn game moves and NFT trades.
- Cost: Free to track history; tax reports range from $49 to $499 per year.
* CoinTracker: Reads multiple wallet addresses and automatically fills out government tax forms.
- Cost: Free basic tracking; tax plans run from $29 to $599+ per year.
* TaxBit: Connects directly to different blockchain programs to track your moves.
- Cost: Starts at $0 for supported partner networks, with paid options depending on total transactions.
3. Let the Software Group Your Transactions
- The program automatically splits your moves into regular income (for earning rewards) and capital gains (for trading or cashing out).
- It also adds network fees (gas fees) to your costs, which helps lower the total profit you have to pay taxes on.
4. Download and File Your Forms
- Download the finished tax forms from your chosen app and add them to your tax filing software.
- Make sure to check "Yes" on your main tax return when asked if you earned or traded digital assets.
(Note: In-game money that stays locked inside regular video games—like V-Bucks—does not count as crypto and does not require tax reporting.)
Tax Community
Please subscribe to the commuity and tell your friends to join here: https://hive.blog/trending/hive-169485
Recent Tax Artciles concerning Gaming Taxes:
@shortsegments
An Eight year Hive Veteran, @shortsegments is introducing a new community to Hive to focus on Taxes. I hope you will subscribe and engage with authors and content consumers there.
Posted Using INLEO
0
0
0.000
This is informative I must say, i never know government could tax cryptocurrency I only thought the get their tax through the platform we use to exchange them like Binance or Bitget depending on the country someone is using it from.
Sharing on Twitter.
https://x.com/djbravo121741/status/2097444496086626761
Sharing upvoted and Reblogged.
Every government, every country, is currently imposing taxes. Crypto should be taxed, but it should not be so high that people have trouble paying it. A normal amount should be taken so that the country can develop. Taxpayers develop the country. There is no problem with people paying taxes, but there is a problem with paying too much tax.
This is pretty cool, Thanks.
I see your trying to get the male gamers interested in the community. :)
I understand marketing to the niche.
It should be an idea that floats on it's own, but I understand you need to attract eyeballs. I think it's a good idea to have the community and hope the gamers will see how it advantages them.
Good Post!
I think the title should get some readers and the graphic certainly helps you get some eyeballs on the post with that graphic.
And hopefully they will appreciate the content as much as the graphic!
The idea is sound and gamers need the info.
But first you have to get their attention, and I think you did!
Good Post!
I think the title should get some readers and the graphic certainly helps you get some eyeballs on the post with that graphic.
And hopefully they will appreciate the content as much as the graphic!
The idea is sound and gamers need the info.
But first you have to get their attention, and I think you did!
First, thank you for spot lighting my article!
I appreciate that.
Second, your article is very good information for gamers, as taxes are front and center in the last quarter.
Third, I see comments about the graphic. And we all know sex appeal sells, so your just being honest about your market and what they find pleasing to the eyes. :)
Do what you need to do, tastefully, to get gamer eyeballs on the article.
This is right on time, as we have enough time to get these programs installed and turn over the work to another company.
I love that you found a free one!