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What-to-Expect-for-Tax-Season
Crypto Taxes

Preparing for 2022 Tax Season

Published, 19 January, 2022

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Disclaimer: BlockFi does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide--and should not be relied on for—tax, legal, or accounting advice. You should always consult your own tax, legal, and accounting advisors before engaging in any transaction.
If you’re a US taxpayer with reportable income, you may get two separate reports related to your BlockFi Interest Account (BIA) and any trading activity in 2021.
Below is an overview for different products and services on BlockFi.

Crypto Interest

Per the IRS, earning interest, bonus, or other income in crypto is considered a taxable event in the US, and cryptoassets are generally treated as property for tax purposes (similar to gold or shares in publicly-owned companies). That means BlockFi’s interest payments to you on cryptoassets, if applicable, are payments of property, making them subject to reporting through the 1099-Miscellaneous form (also known as 1099-MISC). Please note, only US taxpayers who have earned more than $600.00 USD of interest and/or bonuses in 2021 will have a 1099-MISC form, which will be available for download by January 31, 2022.  

Credit Card Rewards

BlockFi credit card rewards are treated as rebates and are not taxable. While the rewards on the credit card would not be treated as income at time of payment, fluctuations in value may have tax implications. Once rewards are paid out on the credit card, BlockFi will track the cost basis for you. Any future trading activity you conduct that includes the BlockFi credit card rewards may generate capital gains/losses that could be taxable. We recommend you consult with a tax advisor with any questions regarding taxes to get a full understanding of the tax implications related to credit card rewards.

Trading

US taxpayers who have traded during 2021 will receive a 1099-B form to report transactions. This report will be made available for download by February 15, 2022.

Non-US

For non-US clients, please view your transaction history and historical monthly interest statements for necessary details.

Free TaxBit Account

All BlockFi clients will get a free TaxBit Network account to generate a Form 8949, which will reconcile to their 1099-B from BlockFi (especially helpful if trading activity across multiple crypto exchanges).

How to Get Your Forms

To download your official tax forms: 
  1. Log in to your BlockFi account using the web application (note: reports are not available in the mobile app)
  2. Open your Profile options from the navigation menu 
  3. Select ‘Reports’
  4. In the ‘Reports’ screen, go to the ‘Taxes’ section
  5. Select ‘2021’ as the tax year
  6. From there, you’ll be able to access the relevant documents and use them to prepare your taxes.
 
As always, clients should consult with their tax advisors for information relating to their specific facts and circumstances. For questions on BlockFi products and services, please feel free to contact us.

Last updated on February 16th, 2022

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As of February 14, 2022, the BlockFi Interest Account (BIA) is no longer available to new clients who are US persons or persons located in the US and existing US clients with BIA accounts are unable to transfer new assets to their BIAs. Learn More.
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Digital currency is not legal tender, is not backed by the government, and crypto accounts held with BlockFi are not subject to FDIC or SIPC protections. Digital currency values are not static and fluctuate due to market changes. Not all products and services are available in all geographic areas and are subject to applicable terms and conditions. Eligibility for particular products and services is subject to final determination by BlockFi. Rates for BlockFi products are subject to change.

BlockFi Rewards Credit Card: For more information, please see BlockFi’s Terms of Service. BlockFi is not a Bank. Cards are issued by Evolve Bank & Trust, Member FDIC, pursuant to a license from Visa® USA Inc. Rewards are not offered by Evolve Bank & Trust and are instead offered and managed by BlockFi.

BlockFi International Ltd. holds a Class F digital assets business license under the Digital Assets Business Act, 2018 (as amended) and is licensed by the Bermuda Monetary Authority to conduct the following digital assets business activities: (i) issuing, selling or redeeming virtual coins, tokens or any other form of digital assets (ii) operating as a digital asset exchange (iii) providing custodial wallet services (iv) operating as a digital asset derivative exchange provider and (v) operating as a digital assets services vendor.

See blockfi.com/terms for more information.

2022 © All Rights Reserved.

As of February 14, 2022, the BlockFi Interest Account (BIA) is no longer available to new clients who are US persons or persons located in the US and existing US clients with BIA accounts are unable to transfer new assets to their BIAs. Learn More.
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This icon serves as a link to download the eSSENTIAL Accessibility's free assistive technology app for individuals with physical disabilities.

Digital currency is not legal tender, is not backed by the government, and crypto accounts held with BlockFi are not subject to FDIC or SIPC protections. Digital currency values are not static and fluctuate due to market changes. Not all products and services are available in all geographic areas and are subject to applicable terms and conditions. Eligibility for particular products and services is subject to final determination by BlockFi. Rates for BlockFi products are subject to change.

BlockFi Rewards Credit Card: For more information, please see BlockFi’s Terms of Service. BlockFi is not a Bank. Cards are issued by Evolve Bank & Trust, Member FDIC, pursuant to a license from Visa® USA Inc. Rewards are not offered by Evolve Bank & Trust and are instead offered and managed by BlockFi.

BlockFi International Ltd. holds a Class F digital assets business license under the Digital Assets Business Act, 2018 (as amended) and is licensed by the Bermuda Monetary Authority to conduct the following digital assets business activities: (i) issuing, selling or redeeming virtual coins, tokens or any other form of digital assets (ii) operating as a digital asset exchange (iii) providing custodial wallet services (iv) operating as a digital asset derivative exchange provider and (v) operating as a digital assets services vendor.

See blockfi.com/terms for more information.

2022 © All Rights Reserved.