Introduction
As cryptocurrencies grow in popularity in 2025, many individuals are entering the world of digital finance. Whether you're trading Bitcoin, Ethereum, or diving into NFTs and DeFi projects, one thing is certain—crypto taxes are unavoidable. Governments across the globe now require individuals to report their crypto earnings. If you’re wondering, “How to do my crypto taxes?”—especially for free—this blog will guide you through the process step-by-step. We’ll explore everything you need to know and recommend tools and resources that help you stay compliant without spending a dime.
Why Crypto Taxes Matter
Understanding the tax implications of crypto is essential. Most countries, including the U.S., treat cryptocurrencies as property. This means:
- Simply holding crypto is not taxable.
- Selling, trading, or spending crypto results in taxable events.
- Crypto earned from staking, mining, or airdrops is treated as income.
Failing to report these activities can lead to severe consequences including audits, fines, and penalties. Moreover, tax authorities now have access to exchange data, making non-compliance riskier than ever. Staying ahead of your crypto taxes not only keeps you legal but also gives you a clearer understanding of your investment performance.
Step-by-Step Guide: How to Do My Crypto Taxes for Free
Step 1: Gather Your Transaction Records
Start by collecting your full transaction history across all platforms you’ve used. This includes:
- Centralized exchanges (like Coinbase, Binance)
- Decentralized wallets (like MetaMask, Trust Wallet)
- NFT marketplaces (OpenSea, Blur)
- DeFi platforms (Uniswap, Aave)
Make sure to download CSV files or export reports that show:
- Buy/sell orders
- Trades/swaps
- Airdrops received
- Staking or mining rewards
- Transfers between wallets
Even if you moved assets between personal wallets, logging those transactions ensures accuracy. Proper documentation is the foundation of accurate tax reporting.
Step 2: Categorize Transactions
After gathering your data, it’s time to label each transaction. This makes it easier to identify what’s taxable and what’s not. Here's a basic classification:
- Capital Gains/Losses: When you sell or trade crypto, compare the sale price to the cost basis (purchase price). The difference is your gain or loss.
- Income: Crypto earned via staking, mining, or airdrops is considered ordinary income and taxed based on its value at the time received.
- Transfers: Moving crypto between wallets you own is not taxable but should be recorded.
Accurate classification reduces audit risks and ensures you're not overpaying.
Step 3: Use Free Crypto Tax Tools
Now, let's explore some of the best free platforms that help you calculate your taxes.
1. Koinly
Koinly allows you to connect your wallets and exchanges to automatically track your transaction history. It supports over 700 platforms globally. With its free version, users can generate a basic tax summary. While downloading tax reports requires a paid plan, the preview feature is enough for basic filing if you're using government platforms to report manually.
2. CoinTracker
Ideal for those with fewer transactions, CoinTracker provides a user-friendly interface and a free plan for up to 25 transactions. It shows a complete view of your portfolio, realized/unrealized gains, and income. It’s perfect for casual investors who need simple summaries.
3. Accointing
This tool is particularly good for international users. The free plan includes detailed summaries, gain/loss reports, and exportable data. It also provides insights into tax-loss harvesting, helping reduce tax liability.
4. ZenLedger
Aimed at beginners, ZenLedger offers easy syncing with popular wallets and exchanges. The free version includes portfolio tracking and tax previews, which can be used to manually complete IRS forms or other government tax tools.
5. CryptoTaxCalculator
If you're active in NFTs or DeFi, this platform is worth trying. It simplifies complex transactions and offers accurate previews even on the free version. It also provides templates for various national tax systems, making global compliance easier.
While these tools may charge for advanced reports, you can still collect enough data to file taxes yourself for free.
Step 4: Calculate Gains and Losses
Now that your transactions are categorized, calculate your capital gains and losses:
- Identify each sell or trade
- Subtract the original purchase price (cost basis) from the sale price
- The result is a gain (if positive) or a loss (if negative)
You can use the summary from any of the tools above to get this information.
In the U.S.:
- Form 8949 is used to report each transaction
- Schedule D summarizes total capital gains/losses
If you’ve had a bad year with losses, you can deduct up to $3,000 in capital losses to offset other income.
Step 5: Report Crypto Income
If you’ve earned crypto from mining, staking, airdrops, or being paid in crypto, this counts as income.
- Determine the fair market value of the crypto at the time received
- Report this amount as income for that year
U.S. Guidelines:
- Use Schedule 1 for hobby income
- Use Schedule C for business income
This distinction matters because Schedule C allows for expense deductions like electricity and hardware (if mining).
Step 6: File for Free Using Government Platforms
Rather than paying for TurboTax or similar platforms, you can use official government filing tools:
U.S. Residents
- IRS Free File lets you file online with IRS-approved software partners.
UK Residents
- HMRC Self Assessment allows you to submit your return online.
Canada
- CRA-approved NETFILE tools are available for free filing.
These platforms let you report your crypto gains and income as part of your regular return without any added costs.
Avoid These Common Mistakes
Even with the best tools, common errors can cost you. Here are mistakes to avoid:
- Ignoring DeFi or NFT trades – These are taxable like regular crypto
- Mixing wallets – Keep personal and business wallets separate
- Missing airdrops or staking rewards – These are often overlooked as income
- Incorrect cost basis – Always track the original price of each asset
- Skipping minor transactions – Even small trades need reporting
Thorough documentation and smart categorization can prevent these errors.
Stay Organized for Future Tax Seasons
Crypto taxes get easier when you maintain good habits:
- Use tools like CoinStats or Delta to track in real time
- Export data monthly to avoid year-end chaos
- Label transactions properly as they happen
- Back up CSVs and exchange history on cloud storage
- Mark calendar reminders for tax season deadlines
These practices save time, reduce stress, and ensure accuracy.
When to Get Expert Help
DIY tax reporting is doable for most users, but there are cases where expert help is better:
- Heavy DeFi or NFT involvement
- Running a crypto-based business
- Complex cross-border transactions
- Past non-compliance or missed years
Hiring a certified crypto tax accountant may cost more upfront but can save thousands by avoiding errors or fines.
Conclusion
If you're asking, how to do my crypto taxes for free in 2025, this guide is your answer. With the right tools, organization, and government platforms, you can file your crypto taxes confidently—without spending a penny.
You’ve learned how to:
- Gather and classify your transactions
- Use trusted free tax platforms
- Calculate gains and income
- File directly with government tools
Crypto taxes can seem intimidating, but when broken down into steps, they’re totally manageable. Take control of your financial future and file smartly—without overpaying.