When does it make sense to wait to file?

Sometimes, you might miss certain tax forms like K-1s or delayed 1099s from crypto exchanges. It could justify a short wait if your crypto exchange or brokerage sends revised statements late in the tax season.

If you’re unsure about your cost basis or still gathering missing records, briefly holding off might be wise to avoid filing an incomplete or inaccurate return. Even so, tracking down any missing documents as soon as possible is best to prevent a jam right before the IRS deadline.

Use our free crypto tax calculator.

When should you file early?

Early filing is a good idea if you already have all your crypto transaction data, you’re sure of your crypto cost basis, and you’re not expecting last-minute updates from your exchange or wallet providers. Filing early can also help if you think you’ll owe money. The quicker you file, the sooner you’ll know exactly what you owe, giving you more time to budget or set up a payment plan.

How long does it take to file taxes?

This depends on your transaction volume and how organized your records are. It may take just an afternoon if you have only a handful of trades. If you traded across multiple wallets and exchanges or have complex DeFi and NFT transactions, it could take weeks to gather data and reconcile everything. Filing early ensures you aren’t crunching through data at the last minute.

Advice to file your taxes faster

Gather your documents
Compile all your crypto transaction histories, including exchange statements, wallet CSVs, and any 1099 forms that reference your crypto earnings. Organize them in a folder or virtual drive for easy reference.

Consider using tax preparation software
TokenTax automatically imports transactions, calculate gains and losses, and generate the necessary forms. This removes a lot of manual effort and speeds up the overall process.

Get professional tax help if you need it
Don’t hesitate to speak with a crypto tax professional if you have multiple wallets, staking rewards, or complicated DeFi activities. Expert guidance can help you avoid costly mistakes and ensure all your bases are covered.

Step-by-step guidance on how to file crypto taxes early

1. Collect all crypto wallet and exchange data

2. Convert your raw transaction records into a consolidated format

3. Calculate your gains and losses automatically or use a professional

4. Prepare your tax forms, including Form 8949 and Schedule D

5. Review your entire return for accuracy, then submit it ahead of the deadline.