Coin Market

Tax season vs tax year: What’s the difference?

Published

1 week ago

March 25, 2025

What is the tax year?

When filing taxes, understanding the tax season and year is crucial for staying compliant and avoiding penalties. A tax year is the 12-month period in which your income, deductions and credits are recorded for tax purposes.

This period is essential because it defines the timeframe for calculating all your earnings and tax liabilities. In many countries, the tax year aligns with the calendar year, which runs from Jan. 1 to Dec. 31, but this is not always the case. Some countries and businesses may follow a fiscal year, starting and ending on different dates.

The tax year runs from Jan. 1 to Dec. 31 in the United States. Any income you earn within that period is reported in the following year’s tax return. For instance, if you earned income between Jan. 1 and Dec. 31, 2024, you would report that income in your 2025 tax return.

While the calendar year is common, some businesses and countries use a fiscal year. For example, in the UK, the tax year for individuals runs from April 6 to April 5 of the following year. Similarly, many companies might follow a fiscal year, such as April 1 to March 31.

Why tax year matters

Tax year matters because of:

Record-keeping: For accurate tax reporting, keeping track of your earnings, deductions and credits within the defined tax year is crucial. This ensures that you report the correct amount of income and claim eligible deductions or credits.Consistency in accounting: Whether for personal finance or business accounting, using a defined tax year helps maintain consistency in reporting and ensures that all financial transactions are aligned with the same period, simplifying financial analysis and tax compliance.

What is the tax season?

A tax season is the official window during which individuals and businesses file their tax returns for the previous tax year. This filing period can last a few months and is dictated by local tax authorities.

In the US, tax season typically begins in late January and ends on or around April 15 (unless extensions or special rules apply). For example, if you earned income in 2024, you would file your tax return during the 2025 tax season, between late January and April 15, 2025.

If you miss this deadline, you may be subject to penalties or interest charges unless you file for an extension.

Why tax season matters

Tax season is important because of:

Compliance deadlines: Filing your tax return within the designated season is crucial to avoid penalties or interest charges. Tax authorities often impose fines for late submissions, and the longer you delay, the more costly the penalties can become.Paperwork and preparation: Tax season is also a time for taxpayers to gather necessary documents such as W-2 forms, 1099s and other income or deduction records. This period allows individuals and businesses to finalize their deductions, review tax laws and ensure all paperwork is ready for filing their returns. Proper preparation during tax season can help maximize deductions and minimize taxes owed.

In the United States, the W-2 form is issued by employers to report an employee’s wages and the taxes withheld during the year, which is essential for completing individual tax returns.

On the other hand, the 1099 form is used to report various types of income other than wages, such as income from freelance work or interest earned. The 1099 is typically provided by clients or financial institutions, and both forms are crucial for accurately filing taxes during tax season. Employers and payers must send these forms to employees and contractors by Jan. 31 each year.

Key differences at a glance:

Did you know? Some businesses and individuals may choose a fiscal year that doesn’t align with the calendar year. For example, a fiscal year could run from July 1 to June 30.

Major countries’ tax years and filing windows

Some countries follow the calendar year (e.g., the US, Canada, Singapore). Others use fiscal years or different periods (e.g., the UK, India, Australia, Switzerland), with varying filing deadlines and extensions based on local regulations.

Different countries have varied start and end dates for both the tax year and tax season. Below is an overview of selected countries:

Always verify deadlines with official government websites, as dates can change due to policy updates or extraordinary circumstances.

Did you know? The IRS finalized regulations requiring brokers to report gross proceeds from digital asset sales starting in 2025 using Form 1099-DA.

Crypto tax year and filing deadlines: What you need to know

For cryptocurrency, the tax year and filing deadlines are often treated similarly to traditional assets. Still, the specifics can vary depending on the country and how cryptocurrency is classified (e.g., capital gains, income).

Generally, the tax year for crypto follows the same period as traditional assets (e.g., Jan. 1 to Dec. 31 in the US and Canada) but with certain exceptions for crypto-specific rules, such as:

Key considerations for crypto taxation

Tax year: Most countries align the crypto tax year with the calendar year, so if you trade or hold cryptocurrencies, your transactions from Jan. 1 to Dec. 31 are typically reported in your tax filings for the following year.Tax season and deadlines: Crypto-related tax filings are generally made during the same tax season as traditional assets. However, the complexity of crypto transactions (e.g., trading, staking, mining) may require additional reporting and documentation. For example:United States: Cryptocurrency gains are reported as part of your 2024 tax return (filed by April 15, 2025).United Kingdom: Crypto must be reported under the self-assessment system by Jan. 31 after the end of the tax year (April 6 – April 5).Special considerations: Different crypto transactions (like trading, staking or mining) may need to be reported separately, and some countries may have specific guidelines for capital gains, income from mining, or airdrops that must be disclosed in the tax filing. Additionally, cryptocurrency exchanges may send users tax documents like 1099-Ks or 1099-Bs in the US, similar to traditional financial assets.

Crypto tax reporting

Many countries are still updating their regulations to address the complexities of cryptocurrency taxation, so it’s essential to stay updated on national tax authority guidelines and any changes in cryptocurrency regulations.

The table below provides a snapshot of the reporting requirements for crypto in the listed countries, focusing on how taxes are applied based on the type of crypto-related activity (capital gains vs. income).

Also, please note that not all crypto transactions are taxable events. For example, transferring cryptocurrency between wallets or accounts you control is generally considered a non-taxable event, as it does not involve a change in ownership or a realization of gains.

However, this can vary significantly from country to country. In some jurisdictions, even wallet-to-wallet transfers might require reporting if the transferred amount later influences the calculation of gains when a taxable event occurs. It is essential to consult local tax guidelines or a professional adviser to determine which transactions are exempt from taxation in your region

Common mistakes to avoid while reporting crypto taxes

Avoiding crypto tax mistakes requires meticulous record-keeping, accurate classification of gains and income and staying updated on tax regulations.

Here are the common mistakes to avoid while reporting crypto taxes:

Failing to report all transactions: Many taxpayers neglect to report every transaction, including small trades, staking rewards or airdrops, leading to discrepancies and potential audits.Confusing capital gains with income: Mixing up capital gains and income from crypto activities (like mining or staking) can result in incorrect tax reporting. Crypto earned through mining or staking may be considered income, not capital gains.Not keeping proper records: Failing to maintain a detailed record of crypto transactions (dates, amounts, exchanges used) can make it difficult to accurately calculate gains or losses, especially if trading on multiple platforms.Ignoring hard forks and airdrops: Some taxpayers overlook income from hard forks and airdrops. These are considered taxable income at the fair market value when received and must be reported.Not using the correct valuation method: Incorrectly calculating the value of crypto at the time of the transaction, especially during volatile periods, can lead to inaccurate tax filings.Underestimating foreign crypto income reporting: If you trade on foreign exchanges, you may need to report foreign accounts and income, failing which could lead to penalties under international tax reporting laws.Forgetting to report crypto-to-crypto transactions: Swapping one cryptocurrency for another is a taxable event in many countries, and failing to report these trades can lead to errors in your tax filings.Not considering taxation for DeFi gains: DeFi income from liquidity provision, yield farming, or staking can be complicated. Many taxpayers mistakenly assume these are not taxable, which leads to issues down the line.

Countries with low or no crypto taxes (as of March 2025)

Countries like Portugal, Singapore, Germany, Switzerland, and the UAE offer attractive, low or zero crypto tax environments for investors.

As of March 2025, several jurisdictions continue to attract crypto investors with their favorable tax environments:

Portugal: Renowned for its crypto-friendly policies, Portugal still exempts individual crypto capital gains for non-professional traders, making it a top destination for those looking to minimize tax liabilities on digital asset investments.Singapore: With no capital gains tax, Singapore remains an attractive hub for crypto investors. While personal trading benefits from this favorable policy, businesses engaged in crypto-related activities must adhere to standard corporate tax rules.Germany: Crypto held by private investors for more than one year is tax-free in Germany. This rule encourages long-term holding, providing significant tax advantages for investors willing to commit to extended periods.Switzerland: Switzerland’s tax system offers leniency for private crypto investors, as capital gains on personal investments are typically tax-free. However, income from crypto activities may be subject to taxation, and the specific treatment can vary by canton.United Arab Emirates (UAE): The UAE has emerged as a crypto-friendly jurisdiction by offering zero capital gains tax on crypto investments for individuals, attracting global crypto investors seeking a tax-efficient environment.

These countries exemplify some of the most attractive tax regimes for crypto investors as of 2025, though regulations continue to evolve, so it’s essential for investors to stay updated on local guidelines.

Coin Market

Bitcoin miner Bitfarms secures up to $300M loan from Macquarie

Published

37 minutes ago

April 2, 2025

Bitfarms, a global computer infrastructure company known for its Bitcoin mining operations, has entered into a $300 million loan agreement with Macquarie Group to finance the development of its high-performance computing (HPC) data centers.

According to an April 2 announcement, Macquarie’s private debt facility will provide $50 million in initial funding for Bitfarms’ Panther Creek data center project in Pennsylvania.

The remaining $250 million will be released once Bitfarms achieves “specific development milestones at its Panther Creek location,” the announcement said.

Once developed, Panther Creek will have a nearly 500-megawatt capacity fueled by several power sources.

Panther Creek “will be sought after by HPC tenants once construction of the project is underway,” said Joshua Stevens, an associate director at Macquarie Group.

Source: Bitfarms

The project is being delivered at a time when AI applications are fueling growing demand for new sources of computational power and data storage capacity. Bitcoin miners are rushing to fill the void — and to secure reliable revenue streams for themselves in a post-halving environment.

However, Bitfarms disclosed in its recent quarterly report that it continues to face “regulatory challenges in expanding its energy capacity,” with the approval timeline ranging from 12 to 36 months.

In the meantime, Bitfarms expects its $125 million acquisition of Stronghold Digital Mining to do much of the heavy lifting in providing additional capacity, CEO Ben Gagnon told investors.

Amid industry pressure, miners are HODLing

Bitfarms mined 654 Bitcoin (BTC) in the final quarter of 2024 at an average all-in cash cost of $60,800.

Like other miners, Bitfarms has elected to retain a significant portion of its mined Bitcoin. Industry data shows it currently holds 1,152 BTC on its books, placing it among the top 25 publicly traded Bitcoin investors.

Miners like Hive Digital have doubled down on their long-term Bitcoin “hodl” strategy as a way to bolster their balance sheet. The company’s Bitcoin holdings have swelled to 2,620 BTC.

Meanwhile, MARA Holdings has accumulated 46,374 BTC and has announced plans for a $2 billion stock offering to acquire more Bitcoin.

Source: Frank Holmes

Like Bitfarms, Hive Digital, Core Scientific, Hut8 and Bit Digital have also made a strategic pivot toward AI and HPC.

Hive executives told Cointelegraph that the company has repurposed a portion of its Nvidia GPUs for such tasks. They said AI applications can generate more than $2.00 per hour in revenue, compared to just $0.12 per hour for crypto mining activities.

Coin Market

Most opportune time to buy Bitcoin? Now — Bitwise CIO Matt Hougan explains why

Published

37 minutes ago

April 2, 2025

If you’ve ever wondered when is the right time to invest in Bitcoin (BTC), you won’t want to miss our latest interview with Matt Hougan. As the chief investment officer at Bitwise, Hougan provides an in-depth analysis, explaining why, from a risk-adjusted perspective, there has never been a more opportune time to buy Bitcoin.

In our discussion, Hougan lays out a compelling argument: Bitcoin’s early days were filled with uncertainty — technology risks, regulatory threats, trading inefficiencies, and reputational concerns. Fast forward to today, and those risks have significantly diminished. The launch of Bitcoin ETFs, adoption by major institutional investors, and even the US government’s strategic Bitcoin reserve have all cemented its place in the global financial ecosystem.

“Bitcoin is only 10% of gold. So just to match gold, which I think is just a stopping point on its long-term journey, it has to ten-x from here,” he said.

But that’s just the beginning. Hougan also touches on Bitcoin’s long-term price potential, why institutional adoption is about to accelerate, and how market fundamentals could push Bitcoin to new heights.

“There’s just too much structural long-term demand that has to come into this market against a severely limited new supply,” he said.

Watch the full interview now on our YouTube channel, and don’t forget to subscribe!

Coin Market

Price analysis 4/2: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, TON, LINK, LEO

Published

37 minutes ago

April 2, 2025

Bitcoin (BTC) bulls have pushed the price above the $87,000 level even as US trade tariffs are slated to kick in on April 2. Bitcoin may remain volatile in the near term, but analysts remain bullish for the long term.

According to Fidelity analyst Zack Wainwright, Bitcoin is currently in an acceleration phase, which “can conclude with a sharp, dramatic rally” if history repeats itself. If that happens, Wainwright expects $110,000 to be the starting base of the next leg of the upmove.

Crypto market data daily view. Source: Coin360

BitMEX co-founder and Maelstrom chief investment officer Arthur Hayes said in a post that if the Federal Reserve pivots to quantitative easing, then Bitcoin could rally to $250,000 by year-end.

Could Bitcoin break above the $89,000 overhead resistance, starting a rally in select altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin has risen close to the resistance line, where the sellers are expected to pose a solid challenge.

BTC/USDT daily chart. Source: Cointelegraph/TradingView

The flattening 20-day exponential moving average ($85,152) and the relative strength index (RSI) just above the midpoint signal the bears are losing their grip. That improves the prospects of a rally above the resistance line. If that happens, the BTC/USDT pair could climb to $95,000 and eventually to $100,000.

Alternatively, if the price turns down sharply from the resistance line and breaks below $81,000, it will suggest that the bears are back in the driver’s seat. The pair may then tumble to $76,606.

Ether price analysis

Ether (ETH) rebounded off the $1,754 support on March 31, signaling that the bulls are attempting to form a double-bottom pattern.

ETH/USDT daily chart. Source: Cointelegraph/TradingView

The bears will try to stall the relief rally at the 20-day EMA ($1,965). If the price turns down from the 20-day EMA, the possibility of a break below $1,574 increases. The ETH/USDT pair may then collapse to $1,550.

Contrarily, a break and close above the 20-day EMA opens the doors for a rise to the breakdown level of $2,111. If buyers pierce this resistance, the pair will complete a double-bottom pattern, starting a rally to the target objective of $2,468.

XRP price analysis

XRP’s (XRP) weak bounce off the crucial $2 support suggests a lack of aggressive buying by the bulls at the current levels.

XRP/USDT daily chart. Source: Cointelegraph/TradingView

That heightens the risk of a break below $2. If that happens, the XRP/USDT pair will complete a bearish head-and-shoulders pattern. This negative setup could start a downward move to $1.27. There is support at $1.77, but it is likely to be broken.

On the upside, a break and close above the 50-day SMA ($2.39) suggests solid buying at lower levels. The pair may then rally to the resistance line, where the bears are expected to mount a strong defense. A break and close above the resistance line signals a potential trend change.

BNB price analysis

BNB’s (BNB) recovery attempt stalled at the moving averages on April 1, indicating that the bears are selling on rallies.

BNB/USDT daily chart. Source: Cointelegraph/TradingView

The bears will try to strengthen their position by pulling the price below $587. If they can pull it off, the BNB/USDT pair could descend to the 50% Fibonacci retracement level of $575 and later to the 61.8% retracement of $559. The deeper the pullback, the greater the time needed for the pair to recover.

A break above the moving averages is the first sign that the selling pressure has reduced. The pair may rally to $644 and then to $686, which is likely to attract sellers.

Solana price analysis

Solana (SOL) is getting squeezed between the 20-day EMA ($132) and the $120 support, signaling a possible range expansion in the short term.

SOL/USDT daily chart. Source: Cointelegraph/TradingView

If the price breaks and closes above the 20-day EMA, it suggests that the buyers have overpowered the sellers. The SOL/USDT pair may rise to the 50-day SMA ($145) and, after that, to $180.

This positive view will be invalidated in the near term if the price turns down from the moving averages and breaks below $120. That could pull the price to $110, where the buyers are expected to step in.

Dogecoin price analysis

Dogecoin (DOGE) remains pinned below the 20-day EMA ($0.17), indicating that the bears continue to sell on minor rallies.

DOGE/USDT daily chart. Source: Cointelegraph/TradingView

The first sign of strength will be a break and close above the 20-day EMA. The DOGE/USDT pair may climb to $0.21, which could act as a strong barrier. If buyers pierce the $0.21 resistance, the pair may rally to $0.24 and later to $0.29.

Sellers are likely to have other plans. They will try to defend the moving averages and pull the price below $0.16. If they manage to do that, the pair could descend to the $0.14 support. A break and close below the $0.14 level may sink the pair to $0.10.

Cardano price analysis

Buyers are trying to push Cardano (ADA) back above the uptrend line, but the bears are likely to sell near the moving averages.

ADA/USDT daily chart. Source: Cointelegraph/TradingView

The downsloping 20-day EMA ($0.71) and the RSI just below the midpoint signal that bears have the edge. If the price turns down and breaks below $0.63, the ADA/USDT pair could plunge to $0.58 and thereafter to $0.50.

Buyers will have to drive and maintain the price above the 50-day SMA ($0.75) to signal a potential trend change in the near term. The pair could rally to $0.84, which may act as a hurdle.

Toncoin price analysis

Toncoin (TON) broke above the $4.14 resistance on March 1, but the bulls could not sustain the breakout.

TON/USD daily chart. Source: Cointelegraph/TradingView

A minor positive in favor of the bulls is that they have not allowed the price to slip much below $4.14. That increases the possibility of a break above the overhead resistance. The TON/USDT pair could rally to $5 and later to $5.50.

The 20-day EMA ($3.71) is the critical support to watch out for on the downside. If the support cracks, it will signal that the bulls are losing their grip. The pair may slide to the 50-day SMA ($3.48) and then to $2.81.

Chainlink price analysis

Chainlink (LINK) tried to rise above the 20-day EMA ($14.32) on April 1, but the bears held their ground.

LINK/USDT daily chart. Source: Cointelegraph/TradingView

Sellers will try to pull the price to the support line of the descending channel pattern, which remains the key short-term level to keep an eye on. If the price breaks below the support line, the LINK/USDT pair could descend to $10.

If buyers want to prevent the downside, they will have to push and maintain the price above the 50-day SMA ($15.47). If they manage to do that, the pair could rally to $17.50 and subsequently to the resistance line.

UNUS SED LEO price analysis

UNUS SED LEO (LEO) turned down from the overhead resistance of $9.90 and plunged below the uptrend line on March 30.

LEO/USD daily chart. Source: Cointelegraph/TradingView

However, the bears could not sustain the lower levels, and the bulls pushed the price back into the triangle on April 1. The recovery is expected to face selling at the 20-day EMA ($9.60). If the price turns down from the 20-day EMA and breaks below the uptrend line, it increases the risk of a fall to $8.

Instead, if the LEO/USD pair breaks above the 20-day EMA, it suggests that the markets have rejected the breakdown. A breakout and close above $9.90 will complete an ascending triangle pattern, which has a target objective of $12.04.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.