Do you pay taxes on crypto losses

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Tax tips 2023: How to tackle crypto losses on your 2022 tax return
You sold your crypto for a loss. You may be able to offset the loss from your realized gains, and deduct up to $3, from your taxable income for the year if. Key takeaways. After the Tax Cut and Jobs Act of , lost and stolen cryptocurrency is no longer tax deductible in most circumstances. Unless they are earning interest from staking or other scenarios, cryptocurrencies are not subject to IRS taxes when you hold them in your.