Key Takeaways
- Exodus does not report directly to the IRS.
- The IRS can still trace your identity when you move funds between Exodus and a centralized exchange.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Exodus’s tax reporting policies within United States. We’ll also break down a simple way to report your Exodus taxes in minutes.
What is Exodus?
Exodus is a non-custodial wallet available on desktop and mobile that supports hundreds of cryptocurrencies and includes built-in exchange services.Â
Exodus does not collect Know Your Customer (KYC) information. However, some swaps through exchange services (especially those involving large amounts) may require you to verify your identity.Â
Even though Exodus doesn’t send tax forms, it’s likely your identity can be traced if you transferred crypto from an exchange with KYC.
Does Exodus report to the IRS?
As noted earlier, Exodus does not report to the IRS. However, it’s important to keep in mind the following:Â
- Blockchain transparency: Blockchain transactions are publicly visible. The IRS can trace your identity if you’ve transferred crypto from an exchange with KYC. ‍
- KYC on some transactions: You may be required to verify your identity if you trade large amounts of crypto on Exodus.
If I use Exodus in the US, do I owe taxes?
In the United States, crypto transactions on Exodus and other platforms are subject to tax:Â
- Capital gains: Selling or swapping crypto is a taxable disposal, you’ll recognize a capital gain or loss depending on how the price of your crypto has changed since you originally received it.Â
- Ordinary income: Staking rewards, airdrops, and other income events are taxed based on fair market value at time of receipt.Â
It’s important to note that transferring crypto between Exodus and other wallets you own is not considered taxable.
Does Exodus have KYC?
You can use Exodus without verifying your identity.Â
However, if you purchase/trade within the wallet, the third-party service may ask for KYC.
Is Exodus legal in the US?
Yes. Exodus is legal to use in the U.S.Â
You are legally required to report your taxable income from Exodus and other crypto platforms.
How do I reduce my Exodus taxes?
There’s no way to legally evade your taxes. However, there are strategies you can use to legally reduce your tax bill:Â
- Tax‑loss harvesting: Sell assets at a loss to offset an unlimited amount of capital gains and up to $3,000 of income. Additional losses can be rolled forward to future tax years! ‍
- Use crypto tax software: Crypto tax software can connect to Exodus and hundreds of other wallets and exchanges to help you find your biggest tax-saving opportunities.
Get an Exodus tax report today
Looking for a simple way to report your Exodus taxes? With CoinLedger, you can import your Exodus transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Exodus and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.
You can get started with a free preview report today.
