Crypto tax help for Texas
Texas has no state individual income tax, which means there is no second layer softening or complicating your position. Your entire crypto tax outcome is decided by the federal return, and that puts all the weight on cost basis, holding periods and classification.
It also makes Texas the home of the cases where classification matters most. Mining and staking operations around the cheap-power corridors, active traders in Austin and Dallas, and businesses accepting crypto. Whether an activity is a hobby, an investment or a trade or business changes the treatment, the deductions and the self-employment position entirely.
How the IRS actually treats it
The IRS treats crypto as property, not currency, under Notice 2014-21. Every sale, swap and spend is a disposal that lands on Form 8949 and Schedule D, and the holding period decides everything. Hold past one year and you reach the long-term rates. Sell a day early and the whole gain is taxed as ordinary income.
Form 1099-DA changed the risk. Brokers report gross proceeds on sales made from 1 January 2025, and from 1 January 2026 they add cost basis for covered assets. Gross proceeds without basis is the trap. If you moved coins between wallets and exchanges, the IRS sees the sale price and not what you paid, so the figure on file looks far larger than your real gain until someone reconciles it.
What we see most in Texas
The cases that come to us again and again from this state.
Mining and staking operations
Rewards are ordinary income at value on receipt, then a capital gain or loss on disposal. Whether it rises to a trade or business changes what you can deduct and whether self-employment tax applies.
Active trading volume
High-frequency histories run to tens of thousands of rows. Software misclassifies transfers as disposals at that volume, which manufactures gains you never made.
Paid in crypto by a business
Crypto received for goods, services or wages is ordinary income at the value on receipt, and that value sets the basis for the eventual sale.
What we do
Transaction reconciliation
We pull every exchange, wallet and protocol you have used, match transfers so they are not counted as sales, restore missing cost basis and build an audit-ready record.
US tax filing
Form 8949 and Schedule D prepared with the right cost basis method and carried into your Form 1040. You review and approve everything before we submit.
Notices and disclosure
Received an IRS CP2000 or a letter about digital assets? We rebuild the real position first, then deal with the correspondence from a footing of facts.
More detail on the US rules is on our US crypto tax guide, and the full service list is on crypto tax accountants.
Texas crypto tax questions we hear every week
Do I pay state tax on crypto in Texas?
No. Texas has no state individual income tax, so there is no state layer on your crypto gains or crypto income. Your federal return is the entire picture, which makes accuracy on cost basis and holding periods the only thing that moves the number.
How is mining income taxed?
Mining rewards are ordinary income at their fair market value when you receive them, and that value becomes your cost basis. Selling later produces a separate capital gain or loss. If the activity amounts to a trade or business rather than a hobby, the deduction and self-employment position changes, which is worth getting right before you file.
Is staking taxed the same way as mining?
Both are ordinary income at value on receipt with a second capital event on disposal, but the facts around control and when the reward becomes yours matter. We look at how the specific protocol delivers the reward rather than applying one blanket rule.
I trade very heavily. Can you handle the volume?
Yes. High volume histories are routine for us. The work is matching transfers so they are not counted as sales, restoring basis across venues, and producing an audit-ready record behind every figure on the return.
Find out where you actually stand.
A free 30-minute review. We tell you what needs doing and what it costs, before you commit to anything.