According to a ChainCatcher report, PayPal has announced a partnership with embedded tax technology platform april. U.S. PayPal Debit Mastercard users will be able to use april's self-service tax filing service to file their 2025 federal and state taxes for free. According to information on PayPal's official website, users must report taxes on cryptocurrencies held on their platform. Starting with the 2025 tax year, the U.S. Internal Revenue Service (IRS) requires U.S. digital asset brokers like PayPal to report gains from digital asset dispositions on Form 1099-DA. If users dispose of cryptocurrencies in their PayPal wallet—such as by selling or exchanging them—during the applicable tax year, PayPal will send them IRS Form 1099-DA by February 15.
PayPal Launches Free Tax Filing Service for Digital Asset Gains Starting in 2025
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Summary
PayPal has introduced a free tax filing service for digital asset gains, aimed at U.S. Debit Mastercard users for the 2025 tax year. The service, powered by the tax technology platform april, is in line with new IRS regulations requiring brokers to report cryptocurrency gains on Form 1099-DA. Users who sold cryptocurrency will receive the form by February 15. This update brings new digital asset news as tax obligations continue to expand. News about digital collectibles is also gaining momentum as more platforms integrate tax-related tools.
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