Are you a Gemini user looking to file your crypto taxes?
It doesn’t matter what exchange you are using — navigating the tax code can feel overwhelming. We put together this article to help you better understand how you can report your transactions on Gemini to the IRS.
In this article, we’ll share what you need to know about the fundamentals of crypto taxes and break down a simple step-by-step process to file taxes on your Gemini transactions.
Gemini is a US-based cryptocurrency exchange and wallet provider that allows customers to buy and sell cryptocurrency and earn crypto interest.
Gemini was founded by Tyler and Cameron Winklevoss in 2013. The company is licensed and regulated by the New York State Department of Financial Services. Gemini is well-known for its focus on security, even going as far as providing insurance in case of a hack, theft, or security breach.
The IRS considers cryptocurrency a form of property, which means that it is subject to both capital gains tax and income tax.
Income tax events: If you earn cryptocurrency as a form of income, this is considered personal income and will be taxed accordingly. Earning interest on Gemini would fall into this category.
Gemini sends 1099-MISC forms to customers who’ve earned at least $600 worth of cryptocurrency income from the platform.
Yes. When Gemini sends a Form 1099-MISC to a customer, the exchange will issue an identical copy to the IRS.
Form 1099-MISC does not contain all the information you need to accurately report your taxes. These forms are designed to report ‘miscellaneous income’ such as staking and referral rewards and do not contain information on capital gains and losses.
There’s a reason why Gemini and other exchanges don’t provide investors with a complete tax report.
Many cryptocurrency investors use multiple exchanges, wallets, and platforms. However, Gemini only has visibility into transactions that take place on the Gemini platform. This makes it difficult for Gemini and other exchanges to calculate your capital gains and losses.
To get a complete record of your entire cryptocurrency transaction history, try CoinLedger. The platform can integrate with Gemini and any other platform you are using to help you calculate your gains and losses and file your tax return in minutes.
Here’s how you can include all of your Gemini transactions on your tax return on CoinLedger within minutes.
1. Within CoinLedger, click the “Add Account” button on the bottom left.
2. Find Gemini in the list of supported exchanges.
3. Click the blue button labeled “Sync Transactions”.
4. At this point, you’ll be asked to enter a 2-factor authorization code.
5. Once you’ve entered the code, click the “Allow” button to finish the process.
6. Now, all of your Gemini transactions will automatically be recorded in your CoinLedger account. When you choose to file your tax report, your Gemini history will be included.
Want to get started managing your taxes on Gemini and other exchanges? Try out CoinLedger, the crypto tax reporting software used by more than 300,000 investors. Get started with a free preview report - there’s no need to enter your credit card information until you’re 100% sure the information given is accurate.