Does Ledger Report to the IRS?

ByZac McClure, MBA · Reviewed byAlex MilesUpdated on November 14, 2024 · minute read

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While Ledger does not directly report to the IRS, users are responsible for accurately reporting transactions on their taxes. TokenTax makes it easy to organize and report Ledger taxes for full compliance.
Ledger users must keep track of transactions, as the IRS requires reporting all taxable crypto events, including gains and losses. Proper reporting can prevent potential issues with the IRS.

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Table of contents

Does Ledger wallet report to IRS?

Does Ledger report to the IRS? No, Ledger does not report directly to the IRS. Ledger is a hardware wallet designed for secure storage, meaning it doesn’t automatically share data with any tax authorities, including the IRS. However, that doesn’t mean Ledger users are exempt from tax responsibilities. While Ledger itself doesn’t report, users must still report any taxable transactions stored in their Ledger wallet.

If you’re using Ledger to store, trade, or transfer crypto, the IRS expects accurate reporting of these activities. Tools like TokenTax can simplify Ledger tax reporting by helping you gather and organize transaction data, ensuring accurate and compliant reporting.

For a comparison with other wallets, check out our guide on Trezor vs Ledger.

Tax implication on your Ledger transactions

Do you have to file taxes on Ledger? Yes. All transactions on your Ledger wallet may have tax implications depending on their nature. For example, buying and holding crypto in Ledger is not taxable, but selling, trading, or converting it into another crypto is. Any transactions resulting in a profit or loss must be reported as part of your tax ledger when using Ledger.

Tax on Ledger activity also applies to staking or earning rewards in your wallet. Even though Ledger doesn’t generate tax forms, keeping track of these transactions is crucial to avoid any issues with tax authorities. For those needing assistance, TokenTax can organize and calculate your tax obligations for Ledger transactions, making tax season more straightforward.

Learn more about crypto staking taxes.

Is moving crypto to Ledger a taxable event?

Moving crypto to your Ledger wallet is not a taxable event, as it’s simply a transfer to a different wallet for secure storage. The IRS does not tax transfers between wallets, so moving assets to Ledger does not trigger a taxable event. However, it's essential to maintain records of these transfers to show that they’re non-taxable in case of an audit.

That said, if you were to sell, trade, or convert the crypto after moving it to Ledger, those actions would be taxable. Knowing when transactions are and aren’t taxable can simplify your tax ledger and make compliance easier.

Does Ledger provide tax documents?

No, Ledger does not provide tax documents for Ledger taxes such as a 1099 form. Since Ledger is a hardware wallet designed solely for storage, it doesn’t generate tax reports or documents. Users must manually track their transactions for tax purposes or use tax software that integrates with Ledger to keep records.

TokenTax can help Ledger users by generating tax reports based on transaction data, making it easier to file taxes without Ledger-specific documentation.

To explore more about crypto wallets, see our list of the best crypto wallets.

How TokenTax can help with your Ledger wallet reporting

TokenTax provides an all-in-one solution for calculating and reporting crypto taxes from your Ledger wallet. By importing data from exchanges and tracking every transaction, TokenTax helps you stay compliant without needing Ledger to supply tax documents. Our platform categorizes each transaction, giving you a clear summary of your gains, losses, and taxable events.

TokenTax simplifies Ledger taxes by calculating any gains or losses associated with your transactions and generating ready-to-file reports. This process ensures you’re prepared for tax season without the hassle of manual tracking.