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You DON'T Have to Pay Crypto Taxes (Tax Expert Explains)How to Report Crypto Losses on Your Taxes � Use line 1b for short-term capital gains or losses listed on Form with checkbox A selected. � Use. Step 2: Complete IRS Form for crypto The IRS Form is the tax form used to report cryptocurrency capital gains and losses. You must. A capital loss can be offset against capital gains but not against other assessable income. If you have no capital gains in a given year, the.