Crypto.com Tax Guide: How to Pay Taxes on Crypto Investments and Assets

When it comes to crypto, the biggest confusion people have is taxes. Crypto.com tax reporting can seem complicated. Trading seems easy, but when tax season arrives, everyone starts wondering –
“How do I pay taxes on this crypto?”

If you’re also confused about the Crypto.com tax reporting process, or how to handle things like crypto tax on investment profits, how to pay tax on crypto assets, crypto capital gains tax USA, and Crypto.com 1099 form tax, then you’re in the right place.

Here we will explain to you step-by-step. You just need to read carefully until the end.

What is Crypto.com Tax Reporting?

First, let’s discuss what Crypto.com tax reporting actually is.

In simple terms — when you trade, stake, or earn rewards on the Crypto.com app or platform, you must record all transactions and report them to the IRS (US tax department). This is part of your yearly tax filing.

You must report:

• When you bought, when you sold, and for how much.
  
• Whether you swapped any coins.
  
• How much rewards or cashback income you received.
  
• How much income you earned from staking.
  

Crypto.com itself sends some data to the IRS through 1099 forms. So if you don’t report, the IRS already has the data—a penalty or notice may follow. So be smart and report everything correctly.

Read Our Latest Blog : How to Verify Bank Account Details for Secure Wire Transfers

Crypto Capital Gains Tax USA – Understand Short-Term vs. Long-Term

Now let’s talk about one important thing—crypto capital gains tax USA.
The IRS treats crypto like “property.” Meaning, when you make a profit—whether you sold it or swapped it—you have to pay tax on that gain.

Short-Term Capital Gains

If you held the coin for 1 year or less and then sold it, it’s called short-term gain.

• This is taxed at your normal income tax rate (which ranges from 10% to 37%).
  
• Example: You bought BTC for $20,000, sold it 6 months later for $25,000 → $5,000 short-term gain, taxed at the normal rate.
  

Long-Term Capital Gains

If you hold a coin for more than 1 year and then sell it, it’s a long-term gain.

• This applies to lower tax rates (0%, 15%, or 20%).
  
• Meaning, if you have a little patience, you’ll pay less tax.
  

So, if you invest in a planned manner, you can save a lot of tax based on crypto capital gains tax in the USA.

Read Also: Crypto.com Deposit Rejected? Common Reasons for Wire and Instant Transfer Failures

Crypto Tax on Investment Profit – How is it Calculated?

Now let’s discuss how your actual crypto tax on investment profit is calculated. This step is the most basic:

1. Find the Cost Basis

The total cost (price + fees) at the time you purchased the coin.
Example: 1 ETH $2,000 + $50 fee = $2,050 cost basis.

2. Look at the Selling Price

The price you received when you sold or swapped.

3. Calculate Profit or Loss

Selling price – Cost basis = Gain or Loss.

• If there’s a profit, tax will be applicable.
  
• If there’s a loss, you can set it off.
  

4. Decide Short or Long Term

The tax rate will vary depending on the holding period.

That’s it! This simple calculation is the basis for your tax.

Crypto.com 1099 Form Tax – Don’t Ignore It

Crypto com sends 1099 forms to many users—especially if you earned income through rewards or cashback.
This Crypto.com 1099 form is a very important tax document.

It states:

• How much you earned in total rewards or cashback throughout the year.
  
• This data is also sent to the IRS.
  

If you ignore this form or the data doesn’t match, the IRS may send you a mismatch notice.

So:

• Download the form.
  
• Cross-check it with your transaction records.
  
• Report the income you report on your tax return.
  

How to Pay Tax on Crypto Assets – Step by Step

Now let’s get to the practical part—people often ask this: How to pay tax on crypto assets?
Let’s explain simply:

Step 1: Collect all transaction data

Export your entire trading history from the Crypto.com app—buy, sell, swap, staking, rewards… everything.

Step 2: Calculate

Sort profit/loss and rewards into separate categories.
You can also use tax tools like Koinly or CoinTracker if you prefer.

Step 3: Fill out tax forms

• Form 8949 → Details of each transaction
  
• Schedule D → Summary of total capital gains/losses
  
• Schedule 1 / 1040 → Rewards or staking income
  

Step 4: File return & pay tax

Don’t miss the deadline, or penalties will apply.
If you have a complex portfolio, you can seek help from a tax expert.

This is the entire process of how to pay taxes on crypto assets—simple, just stay organized.

Common Mistakes People Make in Crypto.com Tax Reporting

Many people make some basic mistakes:

• Ignoring small trades
  
• Not reporting airdrops or staking income
  
• Incorrectly setting the cost basis
  
• Ignoring the 1099 form
  
• Mixing wallet transfers and exchange trades
  

All of these mistakes can land you in unnecessary trouble with the IRS.
A little attention, and everything will run smoothly.

Pro Tips for Easy Tax Filing

• Export transaction data every month—it’s difficult to gather everything at the end.
  
• Keep detailed records (date, amount, reason).
  
• If you have a large portfolio, seek professional help.
  
• Don’t forget to cross-check the 1099 form.
  
• Long-term holding reduces taxes—invest smart.
  

Conclusion

Look, tax filing can seem boring, but if you use Crypto.com tax reporting correctly, it becomes a breeze.

Whether it’s crypto capital gains tax USA, crypto tax on investment profits, or how to pay tax on crypto assets the principle is the same:
Keep accurate records,
Fill out forms correctly, and
Don’t miss deadlines.

And most importantly don’t ignore the Crypto.com 1099 form tax.
If you follow it step-by-step, the entire process becomes smooth and stress-free.

FAQs