How to Do Your Cash App Taxes?
In the year 2013 Square, Inc. launched Cash App, a peer-to-peer payment application. Since then, Cash App has grown to become one of the most widely used payment applications in the United States, with over 70 million users as of 2021. Cash App’s mobile application can be downloaded from both Apple App Store and Google PlayStore.
Square, which is headquartered in San Francisco, California, started to offer payment technology, payroll software, and other services to restaurants and other microenterprises in 2009.
Cash App Taxes
According to the Notice 2014-21 issued by the IRS, bitcoin and other cryptocurrencies are taxable as property in the U. S., much like stocks and real estate.
Whenever you sell bitcoin, you'll make capital gains or losses based on how much the value of crypto has varied since you first got it. The taxes you owe on making crypto transactions on the Cash App are termed as Cash App taxes.
Will Cash App Provide me with Tax Forms?
At present, any user who had sold Cryptocurrency in the previous year receives a 1099-B from Cash App. The gross revenue from your Crypto sales is reported on this form.
But one crucial thing to note is that the cost basis section of the 1099-B is frequently left blank. If you ever traded bitcoin out and into Cash App, your Cash App 1099-B is likely to have unfilled cost basis sections. When it comes to tax accounting, this is a concern as a cost basis is needed to calculate your profits and losses.
Why Don’t I Receive the Full Tax Form from Cash App?
Almost all crypto exchanges have procedures similar to Cash App when it comes to tax reporting.
Crypto investors usually transfer their holdings to other exchanges and wallets due to the peer-to-peer nature of cryptocurrencies. Unfortunately, because exchanges do not have access to customer transactions that occur across platforms, it is impossible for them to give accurate tax reporting. So is the case with Cash App.
Thankfully, there is an better option for investors to properly submit their Cash App taxes. ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Let’s find out how to do your Cash App taxes with the help of ZenLedger.
Connecting Your Cash App To ZenLedger For Your Crypto Tax Forms
As one of the most comprehensive cryptocurrency tax software options on the market, we have import instructions for well over 400+ exchanges.
Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you'll see a table that outlines the possible methods. For many centralized exchanges, we support a direct API code import, while others may require a CSV import. Decentralized exchanges may require a wallet address.
To import your transactions from an exchange, simply navigate to the [Exchanges] tab of the [Imports] page. Select the exchange that you are looking to import, (Cash App, in this case) and instructions will be provided for that specific exchange!
The Bottom Line
Cash App is among the finest money apps for individuals you trust to conduct personal transactions. As per the Cash App official site, payment information is encrypted and routed through secure networks. You must take extra precautions to guarantee that no one uses your phone to send money without your consent.
Cash App suggests securing your phone with a password and turning on the in-app passcode lock, which requires a biometric or PIN for each payment.