How to Connect Jaxx Wallet with Koinly for Tax Reporting: A Step-by-Step Tutorial

Cryptocurrency taxation can be complex, but with tools like Jaxx Wallet and Koinly, you can simplify the process of tracking your transactions and preparing for tax season. This tutorial will guide you through the steps to integrate Jaxx Wallet with Koinly, helping you streamline your cryptocurrency tax reporting efficiently.

Why Use Koinly with Jaxx Wallet?

Koinly is a tax software that specializes in analyzing cryptocurrency transactions and generating ready-to-submit tax reports. It works by syncing with your cryptocurrency wallets and exchanges to track trades, calculate gains and losses, and determine taxable events. Integrating Koinly with Jaxx Wallet allows you to automate much of the data entry and keep accurate records for tax purposes.

Step 1: Prepare Your Jaxx Wallet

Before connecting Jaxx Wallet to Koinly, ensure that your wallet is up-to-date and that you have access to your transaction history.

• Update Jaxx Wallet: Make sure your Jaxx Wallet is updated to the latest version to ensure compatibility.
• Export Transaction History: Jaxx Wallet allows you to export your transaction history, which is necessary for uploading to Koinly. You can usually find this option in the wallet’s settings under “Tools” or “History.”

Step 2: Set Up Your Koinly Account

If you haven’t already set up a Koinly account, you’ll need to do so:

• Visit Koinly: Go to the Koinly website and sign up for an account.
• Configure Your Account: Follow the setup prompts to configure your account, including setting your base currency and any specific tax settings relevant to your country’s regulations.

Step 3: Connect Jaxx Wallet to Koinly

Koinly offers several methods to import your data from Jaxx Wallet:

Option 1: API Integration (If Available)

• API Setup: If Jaxx Wallet supports API integration with Koinly, you would need to generate an API key in Jaxx and enter it in Koinly.
• Add Wallet in Koinly: In Koinly, go to the ‘Wallets’ tab and click ‘Add Wallet’. Search for Jaxx, then select it.
• Enter API Details: Follow the prompts to enter your API key and any other required information to link your wallet directly.

Option 2: CSV File Import

• Export CSV from Jaxx: Use the export function in Jaxx Wallet to download your transaction history in CSV format.
• Import CSV to Koinly: In Koinly, navigate to the ‘Wallets’ tab and click ‘Add Wallet’. Find Jaxx and select ‘Import From File’. Upload the CSV file you exported from Jaxx.
• Review Imported Transactions: Once uploaded, review the transactions to ensure they have been recorded correctly in Koinly. Make any necessary adjustments manually.

Step 4: Review and Organize Data in Koinly

Once your Jaxx Wallet is connected, and data is imported to Koinly:

• Categorize Transactions: Ensure that all transactions are correctly categorized (e.g., income, gifts, mining rewards).
• Check for Accuracy: Verify that all transactions are accurate and reflect your actual portfolio activity. This includes checking dates, amounts, and asset types.

Step 5: Generate Tax Reports

• Generate Reports: Use Koinly to generate tax reports based on your transaction history. Koinly can produce reports suitable for different tax jurisdictions (e.g., IRS forms for the USA, CRA forms for Canada).
• Download or Export Reports: Once generated, you can download or export these reports to use in your tax filing, or to provide to your accountant.

Conclusion

Connecting Jaxx Wallet to Koinly simplifies the process of managing your cryptocurrency taxes by automating data entry and report generation. This integration not only saves you valuable time during tax season but also helps ensure that your reporting is accurate and compliant with tax regulations. With these tools at your disposal, you can navigate the complexities of cryptocurrency taxation with greater ease and confidence.