Most people are familiar with the April 15th deadline for individual tax returns, but that’s not the only date you should have marked on your calendar. From quarterly tax payments to tax-loss harvesting deadlines, there are several important dates for taxes that crypto traders and investors should keep in mind to minimize their taxes and avoid any potential problems.
Let’s take a look at some important dates for taxes to mark on your calendar, as well as some tips to streamline your taxes this season.
Important Dates For Taxes
There are several important dates for taxes and other deadlines and due dates to keep in mind throughout the year, depending on your individual situation. For example, long-term investors don’t need to worry about paying estimated taxes each quarter while short-term traders may not need to worry about harvesting their tax losses before the end of the year.
Important Tax Dates Of 2023
Tax Deadlines: January to March
- Employees who earned more than $20 in tip income during December must report this income to their employer by January 10, 2023, using Form 4070.
- The deadline to pay the fourth quarter estimated tax payment for the 2022 tax year is January 17, 2023.
- Employers must send out W-2 forms detailing their employees' 2021 earnings by the end of January. Most 1099 forms must also be sent to independent contractors by this date.
- Employees who earned more than $20 in tip income during January must report this income to their employer by February 10, 2023 using Form 4070.
- Financial institutions must mail out Form 1099-B (relating to sales of stocks, bonds, or mutual funds through a brokerage account), Form 1099-S (relating to real estate transactions), and Form 1099-MISC (unless the sender is reporting payments in boxes 8 or 10.3) by February 15, 2023.
- Businesses must mail Forms 1099 and 1096 to the IRS by February 28, 2023.
- Farmers and fishermen have until March 1, 2023 to file individual income tax returns unless they paid their 2022 estimated tax by January 18, 2022.
- Employees who earned more than $20 in tip income during February must report this income to their employer by March 10, 2023 using Form 4070.
- Corporate tax returns (Forms 1120, 1120-A, and 1120-S) for the 2022 tax year are due by March 15, 2023, or corporations may request an automatic six-month extension to file using Form 7004. Partnership tax returns (Form 1065) are also due on this date, or an automatic six-month extension to file may be requested using Form 7004.
- Businesses must e-file Forms 1099 and 1098 to the IRS by March 31, 2023, with the exception of Form 1099-NEC.
Tax Deadlines: April to June
- Employees who earned over $20 in tip income during March must report this income to their employer by April 10, 2023.
- Household employers who paid out $2,400 or more in wages in 2022 must file Schedule H for Form 1040 by April 18, 2023.
- All individuals must file their personal tax returns for 2022 (Form 1040 or Form 1040-SR) by April 18, 2023. This is also the deadline to request an automatic six-month extension using Form 4868, and for payment of any outstanding tax owed.
- Employees who earned over $20 in tip income during April must report this income to their employer by May 10, 2023.
- Employees who earned over $20 in tip income during May must report this income to their employer by June 12, 2023.
- The deadline to make the second quarter estimated tax payment for the 2022 tax year is June 15, 2023.
- U.S. citizens living abroad must file their individual tax returns or request a four-month extension using Form 4868 by June 15, 2023.
Tax Deadlines: July to September
- Employees who earned over $20 in tip income during June must report this income to their employer by July 10, 2023.
- Employees who earned over $20 in tip income during July must report this income to their employer by August 10, 2023.
- Employees who earned over $20 in tip income during August must report this income to their employer by September 11, 2023.
- The deadline to make the third quarter estimated tax payment for the 2022 tax year is September 15, 2023.
- September 15, 2023 is the final deadline to file partnership and S-corporation tax returns for the 2022 tax year if an extension was requested using Forms 1065 and 1120-S.
Tax Deadlines: October to December
- Employees who earned over $20 in tip income during September must report this income to their employer by October 10, 2023.
- The final extended deadline to file individual and corporate tax returns for 2022 using Form 1040 and Form 1120 is October 16, 2023, if an extension was previously requested.
- Employees who earned over $20 in tip income during October must report this income to their employer by November 13, 2023.
- Employees who earned over $20 in tip income during November must report this income to their employer by December 11, 2023.
- Corporations that need to file the fourth installment of estimated income tax for 2022 must do so by December 15, 2023.
How To Simplify Your Taxes?
Income taxes can be intimidating for crypto traders and investors since you must file additional paperwork above and beyond Form 1040. In particular, crypto holders must disclose their crypto activity on Form 1040 Schedule 1 and file Form 8949 to show a record of capital gains and/or losses that are ultimately included on Form 1040 Schedule D.
The IRS treats crypto assets as property, which means that you owe tax on any capital gains. Your taxable gains are the difference between the cost basis (what you paid to acquire the asset) and the sale proceeds (how much you made from the sale). If you received crypto in an airdrop or hard fork, the cost basis may be zero (since you didn’t pay anything to acquire it), which means you may owe tax on the entire value.
While cash-to-crypto transactions are straightforward, crypto-to-crypto transactions can be a challenge. You must calculate the cost basis in U.S. dollars for each transaction, which entails looking up and reconciling the U.S. dollar price at the time of the transaction. If you had trades across multiple wallets and exchanges, it’s even more difficult to compute, since you’ll need to cross-reference the accounts to determine the cost basis.
ZenLedger automatically integrates with wallets and exchanges to compute these values and auto-fill Form 8949 and Form 1040 Schedule D. In addition, the platform can help you automatically find opportunities to harvest losses throughout the year to offset gains and lower the amount of tax that you owe (or maximize your refund).
Other than this, you can follow these pointers to simplify your taxes further:
- Keep good records: Good record keeping can make it easier to file your taxes accurately. Keep all relevant documentation, such as receipts and bank statements, organized and in a safe place.
- Take advantage of tax deductions and credits: There are many tax deductions and credits available that can reduce your tax bill. Make sure to claim all deductions and credits that you are eligible for to lower your tax burden.
- File electronically: E-filing your tax return is generally faster and more accurate than filing a paper return. Many tax preparation software programs allow you to e-file your return directly.
- Consider hiring a tax professional: If your taxes are particularly complex, you may want to consider hiring a tax professional to help you file. A tax professional can help you navigate the tax code and ensure that you are taking advantage of all available deductions and credits.
The Bottom Line - Important Tax Dates
Most people are familiar with the April 15th deadline to file individual tax returns, but there are several other important tax dates that crypto traders and investors should mark on their calendars. With ZenLedger’s done-for-you solution, you can reduce the stress on tax season and ensure that you’re paying the correct—but minimal—the amount of tax each year.
If you’re interested in minimizing your Crypto Taxes and Accounting, try ZenLedger today or check out the rest of our blog or our recorded webinars for a wealth of resources on Crypto Taxes and Accounting and a wide variety of other topics.
ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Get started for free now or learn more about our tax professional prepared plans!