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Bitwage Rolls Out Tax Calculator Tool as IRS Ramps Up Crypto Pressure

The new tool comes as the IRS is sending more letters to crypto investors.

By Sebastian Sinclair
AccessTimeIconAug 26, 2020 at 9:05 a.m. UTC
Updated May 9, 2023 at 3:11 a.m. UTC
(Shutterstock)

(Shutterstock)

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Crypto payroll provider Bitwage and software developer Consultabit have added a new tax tool to their bitcoin investment calculator.

  • Announced Wednesday, the new tax add-on will help crypto investors stay on top of their reporting obligations by providing an estimate of federal taxes due on their bitcoin gains.
  • The calculator presents a total owed to the Internal Revenue Service (IRS) based on amounts invested, annual income and marital status.
  • Additionally, Bitwage and Consultabit have added a button allowing investors to view their gains and taxes on one-time purchases.
  • The tax calculator feature comes at a time when the Internal Revenue Service – the U.S. tax agency – is ramping up efforts to stop suspected avoidance on crypto investment tax, even against the advice of its own watchdog.
  • Bitwage and Consultabit launched the bitcoin dollar cost average calculator in January.
  • The payroll provider enables employers to pay their workers in bitcoin and several other cryptocurrencies as a way to quickly move money across borders.
  • It recently added payments in the USD coin (USDC) stablecoin, linked to the price of the U.S. dollar, allowing users to avoid the volatility associated with other supported cryptocurrencies.
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