Coinbase and TurboTax have announced a new partnership that will let users automatically convert state and federal government tax refunds into cryptocurrencies.
The tax software giant and the cryptocurrency market have teamed up in an attempt to get more users interested in investing.
The deal creates a new direct deposit program for TurboTax users within Coinbase, which automatically converts US dollars into over a hundred different cryptocurrencies, from stablecoins to profitable assets so they can trade or earn interest.
tax refund cryptocurrency
Coinbase claims there are going to be no trading fees and has created a new section on its site to guide users through the process.
“With tax season officially underway, service customers waiting for a refund might be wondering what to do with their extra money,” says Coinbase's Bipul Sinha.
"Customers of the Coinbase service can now get tax refunds automatically deposited to Coinbase in USD, where they can be immediately converted to cryptocurrency when they deposit with TurboTax. Customers of the service will receive their full refund and can opt for save, invest or spend it".
Interested users can begin the process by filing their taxes from the Coinbase section of the TurboTax site, where they can log in with their TurboTax credentials and fill out their tax return.
Once your tax refund is calculated, TurboTax will ask you to enter the account details to receive your refund, where you can choose the Coinbase option to create a direct deposit account.
The company claims that it is particularly looking to target those who are considering using cryptocurrency to add to their savings. He cites recent research by the National Retail Federation that found that nearly 2-thirds (sixty-two%) of U.S. depositors expecting a refund this year plan to spend the money on savings, and only twenty-seven% plan to use it for a living. . bills.
There are certain restrictions and dangers, including that the value of cryptocurrencies fluctuates more than the USD. If you really need money to be safe, this is probably not a smart option. That being said, there is no benefit without danger.
Coinbase is not the only recent synergy for Intuit, which operates TurboTax. In September XNUMX, the company acquired Mailchimp for US$XNUMX million in cash and stock.
The partnership comes shortly after Coinbase also launched the ability to receive pay stubs in cryptocurrency. New York City Councilor Eric Adams was an early adopter, but saw his salary fluctuate wildly, though for what he's worth, Adams actually takes his pay stubs, plus or minus $9,924.66 barbarians, still in USD, but Coinbase then transforms them to BTC and ETH.