Binance Tax Reporting
TokenTax imports Binance data for easy cryptocurrency trade tracking and tax filing.
Need to figure out your crypto taxes? Get help for calculating cryptocurrency tax.
Does Binance report to the IRS?
Binance, a Malta-based company, is one of the most popular crypto exchanges in the world. However, it is no longer serving U.S.-based traders, so Binance does not report to the IRS. instead, it operates a separate site for Americans traders: Binance.US.
Nevertheless, U.S. traders should absolutely include original Binance.com records in their crypto capital gains and capital loss tax calculations.
How Binance tax reporting works
According to the IRS, crypto is treated as property for tax purposes, so you are liable for any capital gains when you sell or trade it. When you report cryptocurrency on your tax return, trades must be calculated with USD equivalent for the IRS Form 8949, and you must also match sales with their original cost basis.
Most people bought crypto on another exchange and transferred it to Binance. This makes it tricky to match cost basis and proceeds— and find the USD value equivalent of all trades. In many cases, you can’t report your Binance exchange taxes alone; you must also factor in any other exchanges that you traded on.
When it comes to paying taxes, many crypto investors and traders are using crypto tax software to automatically import their trading history from cryptocurrency exchanges like Binance.
Once all exchange data is in, the software calculates total capital gains or losses across all exchanges and automatically generates the necessary crypto tax forms. You can also see your net gain or loss and estimated tax liability.
Since Binance.com is shut down for U.S. users, how can I get my transaction history?
Luckily, Binance has only disabled trading and crypto deposits for U.S. users, at least for the time being. That means that you can still log on to the platform to retrieve your transaction data CSVs — as well as to withdraw any remaining crypto. API key connections are still functional as well.
However, Binance could disallow logins at any point in the future, so it’s always a good idea to keep offline records of your crypto transaction history. This applies to Binance as well as any other exchanges you’ve traded on.
Binance.com and Binance.US are two separate exchanges, so you must import your transaction histories from both.
Do I need an FBAR for Binance?
Before 2019, when the platform closed to U.S. users, many Americans traded on Binance.
If you are an American who traded on Binance, and you have above the FBAR threshold for foreign holdings, then you will need to include the original Binance in your FBAR filing. This means that you need to include the highest balance of crypto held on Binance, calculated in USD.
Uploading a Binance CSV with TokenTax
Trade transactions:
Hover over Orders at the top right of Binance, click Spot Order, and then click Trade History on the left sidebar to access your Binance trade history (https://www.binance.com/en/usercenter/history/user-trade).
Click on Export Complete Trade History at the top right corner.
You can only export 3 months at a time, so if you traded at Binance all year, you will need to create 4 reports (Jan – Mar, Apr – Jun, July – Sept, Oct – Dec) — remember to include all years you have traded on Binance.
Click Export to download the XLSX file.
Upload your XLSX file to TokenTax.
Withdrawals and deposits:
Go to your Binance deposit and withdrawal history.
Click Export Complete Deposit History at the top right corner.
Click the Withdrawal tab and then click Export Complete Withdrawal History at the top right corner. Deposits and withdrawals are each a separate report.
Importing a Binance API into TokenTax
On Binance, hover over the circular icon at the top right and click API Management (https://www.binance.com/en/usercenter/settings/api-management).
To create a new API key, type in a label (it can be anything) in the text box at the top, then click Create.
Go through the authentication prompts, and then you will see your new API key. Now, copy your API key and secret —you won't be able to see your secret key again.
Click Edit restrictions and Uncheck 'Enable Spot & Margin Trading' and Enable Withdrawals'. Leave "Can Read" checked.
Set IP access restrictions to Unrestricted.
Click Save to save your API settings. Copy your API key and secret to TokenTax.
