The amount of tax you pay on your cryptocurrency gains depends on how long you have held the coins for and your ordinary tax rate.
Coins you have had for one year or less are short term capital gains. The gains are added to your income and you are taxed at your ordinary income tax rate.
Coins you have had for more than one year are long term capital gains and are taxed between 0-20%, in accordance with your ordinary income rate. For more detailed information on short and long term capital gains see here.
For high income individuals, you may also be subject to an additional 3.8% Net Investment Income Tax (NIIT).
Note: Lumina is intended to serve as an informational and assistive tool only. Lumina is not intended to substitute for professional tax, accounting, audit, or legal advice. Information provided on Lumina is subject to change without notice. Lumina is not responsible for the accuracy of your tax, audit, or legal compliance. Please consult a licensed professional for financial, tax, and legal advice.
