🧾 How to Report Crypto Taxes in 2025 (Binance, Coinbase, QuickBooks, TurboTax, Xero & More)

Crypto trading is no longer a niche activity — and neither is crypto tax. In both the UK and US, tax authorities are cracking down, and exchanges like Binance and Coinbase now share data with regulators.

If you’re wondering how to actually file crypto taxes — and whether tools like TurboTax, QuickBooks, or Xero can help — this guide breaks it down 👇

🇬🇧 UK: HMRC Crypto Tax in 2025

HMRC treats crypto as property, not currency.
Capital Gains Tax (CGT) applies when you sell, swap, or spend crypto.
Income Tax applies on staking, mining, and airdrops.
Allowance: £3,000 CGT exemption.

Exchanges reporting to HMRC:

Binance, Coinbase, Kraken, KuCoin, Gemini (and others) are all part of data-sharing agreements.

Software & accounting integrations:

You can export CSVs from Binance, Coinbase, or Kraken.
Import into QuickBooks or Xero if you want to reconcile with your accounts.
Or use specialist crypto tax services (like TaxAnon 😉) to generate HMRC-ready reports fast.

🇺🇸 US: IRS Crypto Tax in 2025

IRS treats crypto as property (Notice 2014-21).
Short-term gains (≤12 months) = taxed as income (10%–37%).
Long-term gains (>12 months) = 0%, 15% or 20% depending on your bracket.
Mining, staking, and airdrops = ordinary income when received.

Exchanges reporting to the IRS:

In 2025, expect 1099-DA forms from Coinbase, Binance.US, Kraken, Robinhood, Gemini and others.

Tax software integrations:

TurboTax integrates directly with Coinbase and other exchanges for US taxpayers.
QuickBooks and Xero can track crypto for businesses, but aren’t tailored for IRS rules — you’ll still need specialist crypto tax reports.

💡 The Reality of Using QuickBooks, Xero & TurboTax for Crypto

TurboTax → good for simple Coinbase users, but struggles with DeFi, NFTs, or multi-exchange trading.
QuickBooks & Xero → great for bookkeeping, but they don’t auto-handle crypto tax rules (capital gains vs income). You’ll need a reconciled report first.
TaxAnon-style service → cleans your Binance, Coinbase, and DeFi data into one compliant report for HMRC (UK) or the IRS (US).

🛠️ Practical Steps

Export CSVs from your exchange (Binance, Coinbase, Kraken, KuCoin).
Check if rewards (staking, mining) need to be reported as income.
Reconcile trades using crypto tax software or services.
File reports:
- 🇬🇧 UK → Self-Assessment with CGT & Income details.
- 🇺🇸 US → Form 8949 + Schedule D (gains) + Schedule 1/C (income).

✅ Key Takeaways

Binance, Coinbase & co. all report data to HMRC and IRS.
TurboTax works for simple US cases; QuickBooks/Xero help businesses but don’t solve crypto-specific rules.
UK investors face a £3k allowance cap; US investors must watch short-term vs long-term rates.
The more wallets & exchanges you use, the more likely you’ll need a specialist crypto tax report to stay compliant.

Learn More

❓ Frequently Asked Questions – Crypto Taxes 2025

1. Does Binance report to HMRC and the IRS?

Yes ✅. Binance, Coinbase, Kraken, Gemini and other major exchanges are required to share customer data with tax authorities. In the UK, HMRC receives exchange data directly. In the US, the IRS requires new 1099-DA forms starting in 2025.

2. Can I use TurboTax to file my crypto taxes?

Yes, but with limits. TurboTax integrates with Coinbase and some other exchanges, making it fine for simple trades. However, it struggles with DeFi, NFTs, or multi-exchange activity. In those cases, you’ll need a reconciled report first.

3. Does QuickBooks handle crypto tax automatically?

No. QuickBooks can record crypto transactions as part of your bookkeeping, but it doesn’t calculate capital gains vs income. You’ll need to import a proper crypto tax report (e.g., from TaxAnon) before finalising your books.

4. Can I connect Xero to crypto wallets?

Not directly. Xero can track balances if you manually import data or use third-party connectors, but it won’t auto-calculate tax. You’ll still need a crypto tax report to classify gains and income correctly.

5. What happens if I don’t report my Binance or Coinbase trades?

In the UK, HMRC issues “nudge letters” and penalties up to 200% for deliberate non-disclosure.
In the US, the IRS can audit, backdate taxes, and apply penalties of up to 75% on underpaid tax — plus criminal charges in extreme cases.

6. Do I pay tax just for holding crypto?

No. In both the UK and US, holding crypto is not taxable. Tax is triggered only when you dispose of crypto (sell, swap, spend, gift) or when you earn it (staking, mining, airdrops, payments).

7. Can I offset crypto losses?

UK: Yes, allowable losses can offset gains and be carried forward.
US: Yes, capital losses offset gains; up to $3,000 can offset ordinary income.
India (for comparison): No — losses cannot be offset under current law.

8. Do NFTs have different tax rules?

Generally no. In both the UK and US:

Buying/selling NFTs = capital gains tax.
Creating/selling your own NFTs = income tax.

9. How do I prepare my records for HMRC/IRS?

Export CSVs from your exchange (Binance, Coinbase, Kraken, KuCoin).
Track all staking, mining, or DeFi rewards.
Consolidate data into one tax report.
File with HMRC (Self Assessment) or IRS (Form 8949 + Schedule D + Schedule 1/C).