Are you confused on how to file your eToro taxes?
You’re not alone. Cryptocurrency tax reporting can feel overwhelming, even for investors with years of experience.
In this guide, we’ll share everything you need to know on how to file your eToro taxes. We’ll cover the basics of cryptocurrency taxation and walk through a simple process that can help you file your eToro taxes in minutes.
eToro was founded in 2007 by Ronen Assia, Yoni Assia, and David Ring. Currently, the platform allows users to trade and invest in different types of assets including stocks, ETFs, and cryptocurrencies.
eToro bills itself as a social investment platform, allowing users to mirror the transactions of successful traders. Currently, the platform has more than 25 million users worldwide.
Cryptocurrency is subject to capital gains and income tax.
For more information, check out our complete guide to cryptocurrency taxes.
Currently, eToro issues Form 1099-MISC to customers who earn more than $600 of income during a tax year.
It’s important to note that these tax forms may contain errors if you’ve transferred cryptocurrency into or out of eToro (more on this later).
eToro’s tax forms calculate capital gains and losses according to first-in first-out (FIFO). However, it’s important to remember that the IRS also allows for specific identification methods when calculating your crypto taxes (which can help reduce your tax bill in some circumstances).
For more information, check out our complete guide to FIFO, HIFO, and LIFO.
As noted earlier, eToro does send 1099-MISC forms to both customers and the IRS.
In the future, eToro and other exchanges will likely be required to send more comprehensive tax information to the IRS. The American infrastructure bill requires all exchanges to send 1099-B reporting information to customers and the IRS.
Tax documents for stock/ETF trading on eToro are filed with the IRS, and are available for download under Tax Documents in your Account Settings.
Typically, crypto exchanges send 1099 forms that detail taxable income during a tax year to customers by February 15 of the following year.
If you’ve transferred your crypto into our out of eToro, your tax forms may be inaccurate.
This is a common problem for cryptocurrency exchanges. Because crypto investors often transfer their holdings between different wallets, exchanges often don’t have access to information about cost basis they need to calculate taxes.
Cryptocurrency tax software like CoinLedger can help. The platform can aggregate your transactions across all your wallets, calculate your gains and losses, and generate a comprehensive crypto tax report in minutes.
CoinLedger can make reporting your eToro transactions easy. Here’s how you can finish the process in six simple steps.
1. Go to your Settings in your eToro account.
2. Select the option labeled ‘Account’.
3. Click on the ‘View’ button to download your account statement.
4. Click on the Select Dates and then on the Custom option. Select the beginning and end of the tax year you wish to import.
5. Download the xls file.
6. Click ‘Add Account’ within CoinLedger. Then, select eToro. You can drop in your xls file to import your eToro transactions!
And that’s it! Once you’ve imported your transactions from your other exchanges and wallets, you’ll be able to generate your tax report with the click of a button!
Want to get started with CoinLedger, the platform trusted by more than 300,000 crypto investors across the globe?
Get started with a free preview report today — there’s no need to enter your credit card details until you’re 100% sure your information is accurate!