Filing Your Crypto Taxes 101

If you bought Bitcoin and other cryptos when prices were high then there's a silver lining around the gray state of the crypto markets now: any losses you take this year could place you in a lower tax bracket.

Once you decide to make a move, tax authorities consider the loss to be "Realized." If your loss is great enough, you may reabe able to use it to enter a lower tax bracket.

If you currently make just over $50,000 per year, that $3,000 cryptocurrency loss could place you in a lower tax bracket.

If your crypto tax loss puts you below the $38,700 mark, you'd only have to pay $952.50 plus 12% of any amount over $9,525.

If you're married and filing jointly or widowed, moving into a lower tax bracket can result in even more tax savings.

Dropping down to the $19,051-$77,400 tax bracket by filing a crypto loss would save you $7,002.

In addition to cryptocurrency traders, cryptocurrency miners can use deductions to reach lower tax brackets.

There is software available that can crunch all of your crypto tax data for you.

If you use a crypto tax calculator to do your own taxes, filing your taxes is a straightforward process.

If you lost money in crypto markets last year, you may be able to offset some-or perhaps even all-of those losses at tax time.