The start of 2022 means it is tax season and taxpayers across the USA are filing their returns for the 2021 calendar year. Many are expecting to receive tax refunds and those who are due money back from the IRS can now get their refund in cryptocurrency.
Last week, Coinbase and TurboTax announced a partnership that will allow users to have their tax return converted into one of over 100 different cryptocurrencies, with Bitcoin and Ethereum both included.
“Now, Coinbase customers can get tax refunds automatically deposited into Coinbase as USD, where it can be immediately converted into crypto, when they file with TurboTax,” a Coinbase blog explained. “Customers will receive their full refund and can choose to save, invest, or spend it.”
How to receive your tax refund in crypto
To start this process, those interested in receiving their tax refund in a cryptocurrency should file their tax return via the Coinbase section of the TurboTax website.
It will then take an estimated three weeks for a return to come through. Once the tax refund has been calculated, and assuming there is one due, TurboTax will request account details for the refund and users can select the Coinbase option to set up a direct deposit account, before entering their Coinbase account and routing numbers.
Coinbase has stated that its customers can receive free tax reports for up to 3,000 transactions from its crypto tax partner CoinTracker.
Cryptocurrencies are becoming more and more popular and many converted their coronavirus stimulus checks straight into crypto in 2020 and 2021. Now, as a result of this TurboTax and Coinbase partnership, it is expected that many taxpayers will do likewise with their tax refunds in 2022, although anyone considering this is being urged to proceed with caution and to ensure they fully understand the risks involved with crypto.