By Bipul Sinha, Senior Product Manager, Coinbase
With tax season officially underway, customers expecting a refund might be wondering what to do with their extra cash. Now, Coinbase customers can get tax refunds automatically deposited into Coinbase as USD, where it can be immediately converted into crypto, when they file with TurboTax. Customers will receive their full refund and can choose to save, invest, or spend it. Tax season can be stressful, but now there’s an easy way to put refunds to work.
Put your refund to work on Coinbase
According to the National Retail Federation, 62% of US taxpayers who expect to receive a refund this year plan to put the money towards savings, while 27% plan to use it for everyday spending. Our customers are increasingly thinking about how to incorporate crypto in their savings and everyday spending: putting money towards assets they think will increase in value, holding yield-bearing assets, and spending and earning with Coinbase Visa® Card. This year, customers can deposit refunds into Coinbase fee-free to start immediately putting their money to work. They can choose to get refunds deposited into 100+ cryptocurrencies from stablecoins to yield-bearing assets so they can trade or earn interest. Or, they can choose to receive refunds in USD so they can be ready for any trade or to spend with their Coinbase Visa® Card (if they choose to spend USD). All incoming tax refunds will be deposited without any fees².
File with TurboTax to deposit your refund into Coinbase
You can deposit your refund into Coinbase when you file with TurboTax. Here’s how:
- Begin filing your taxes from the Coinbase section of the TurboTax website
- Login using your TurboTax credentials and complete your tax return (plus, Coinbase customers get up to $20 off)
- After your tax refund has been calculated, TurboTax will ask you to enter account details to receive your refund. Find and tap on the Coinbase option and we’ll help you set up your direct deposit account³
- You will follow a few simple steps to activate your account and select the crypto (or USD) in which you want to receive your tax refund
- When prompted, tap on the Manual option to view your Coinbase account and routing number⁴
- Go back to TurboTax and enter your Coinbase account and routing number as the destination for your tax refund. You’ll use MetaBank as the name of the bank
- You can manage your direct deposit settings and view your account and routing number at any time from coinbase.com/direct-deposit
Coinbase is committed to giving everyone instant and easy access to the cryptoeconomy. Last year, we started helping customers get paid in crypto and receive expense reimbursements in crypto. We’ll continue to enable new use cases that allow customers to transition more of their financial lives to the cryptoeconomy.
We’re also committed to making tax season as easy as possible. Visit www.coinbase.com/taxes for a personalized guide to your crypto taxes⁵.
¹If you choose to receive your refund in crypto, Coinbase will automatically convert the amount from US dollars to crypto with no trading fees. Choosing to receive your refund in crypto is an optional Coinbase offer.
²No Coinbase trading fees but a spread applies when we buy, sell, or trade cryptocurrencies. Other standard fees may apply, and will be shared during direct deposit sign-up.
³You can deposit a maximum of $25,000 per day.
⁴Coinbase account and routing number is for deposits only, withdrawals will be rejected.
⁵Coinbase doesn’t provide tax advice. Information here is provided to help you understand your taxes, but should be reviewed before you use it to file your taxes. Please work with a professional.
The Coinbase Card is issued by MetaBank®, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. The Coinbase Card is powered by Marqeta. You may use Coinbase Card to make purchases anywhere Visa Debit cards are accepted.
Get your tax refund into Coinbase when you file with TurboTax was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.