How to do your crypto taxes

Doing your crypto taxes doesn’t have to mean days spent wrestling with spreadsheets. MetaMask Tax Hub powered by Summ (formerly Crypto Tax Calculator), lets you generate a crypto tax report in just a few clicks. It connects to more than 3,000 wallets, networks, exchanges, and DeFi platforms, helping you understand the crypto taxes you may owe more accurately.

This article is for informational purposes only and is not tax or financial advice. Please speak to a qualified tax professional about your specific situation.

How to do your crypto taxes in MetaMask Tax Hub

1. Open MetaMask Web and click on Tax Hub.

2. Connect your MetaMask wallet.

3. Choose your tax jurisdiction.

4. Connect any other external wallets, addresses, exchanges, or crypto accounts you own.

5. Click Get report to generate a free tax estimate, or choose a paid plan to download your full tax report. 

Note: Investor and Trader plans include features that identify several tax savings measures, including a proprietary tax minimization algorithm, multiple inventory methods, a tax loss harvesting tool, and advanced tax reports. 

MetaMask Tax Hub uses Summ’s engine to pull in your eligible accounts and activity and automatically classify what it finds. Investor and Trader plans unlock extra tools, including:

• A tax minimization engine that looks for more efficient options.

• Multiple inventory methods (such as different cost-basis methods, depending on your jurisdiction).

• A tax loss assistant to help you spot potential loss events.

• Advanced reporting features designed for more active traders.

Summ supports unlimited account connections and annual reports for over 100 countries, including support for previous tax years. As a MetaMask users, you can get a paid Summ plan at a 30% discount, automatically applied at checkout.

What to keep in mind when preparing your crypto tax data

MetaMask Tax Hub can automatically detect many common transaction types, calculate gains and losses, and highlight potential tax-saving opportunities. It’s still helpful to understand a few key concepts while reviewing your reports.

Local rules and reporting standards

Tax treatment for digital assets varies from country to country. Ensure that the report you generate matches the forms, formats, and filing rules your local tax authority expects. When in doubt, share the exported report with a tax professional who understands crypto in your region.

Identify the type of each transaction

How a transaction is taxed often depends on what it is:

• Selling tokens for fiat or swapping one token for another is often treated as a disposal and may create a capital gain or loss.

• Rewards from staking, yield programs, or some incentives are frequently treated more like income when you receive them.

These categories are usually subject to different tax rules and, in many places, different rates.

Don’t forget fees

Network fees (like gas) and protocol fees can add up over time. In some jurisdictions, those costs can be added to your cost basis or used to reduce your taxable gains. Whether and how you can do that depends on local law, so they’re worth tracking carefully.

Look at your net gains and losses

Once you’ve pulled in all your wallets and accounts, check the total gains and losses across your portfolio. In many tax systems, net losses can sometimes offset gains in the current year or be carried forward to future years, subject to limits set by your tax authority.

Separate income from capital gains

It’s important to distinguish between:

• Income-like events (such as staking rewards or getting paid in crypto).

• Capital gains events (such as selling or swapping assets).

This separation helps ensure the correct tax treatment can be applied under your local rules.

Record hacks, scams, and rug pulls

If you’ve lost funds due to scams, hacks, or rug pulls, make a note of when they happened, which assets were involved, and how much value was lost. Some regions allow certain loss or theft events to be considered for tax purposes, but the rules are highly jurisdiction-specific, so good documentation matters.

Make tax season less stressful with MetaMask Tax Hub

Reporting your crypto activity can get complicated when you’re juggling numerous wallets, exchanges, and protocols. MetaMask Tax Hub is designed to streamline this process by:

• Connecting to thousands of supported wallets, exchanges, and DeFi platforms.

• Automatically categorizing blockchain activity based on type—such as trades, swaps, rewards, fees, and transfers.

• Calculating gains and losses and producing reports formatted for tax filing.

Ditch the spreadsheets and head to MetaMask Tax Hub to generate a comprehensive report in one click.