Coinbase will let users receive their tax refunds in crypto in a partnership with TurboTax

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  • Coinbase is giving its users the option to receive their tax refunds in crypto if they file using TurboTax.
  • The exchange launched a direct deposit program that will allow users to automatically convert US dollars into crypto.
  • Users will have more than 100 cryptos to choose from, including stablecoins and yield-bearing assets.
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Coinbase Global is giving its users the option to receive their tax refunds in cryptocurrency if they file using TurboTax, a software company.

The exchange launched a direct deposit program that will allow users to automatically convert US dollars into crypto with no trading fees, according to an announcement Thursday. A maximum amount of $25,000 a day can be deposited.

Users will have more than 100 cryptos to choose from, including stablecoins and yield-bearing assets. Alternatively, users can select to receive their refunds in US dollars, which will be directly deposited in their accounts for future trading.

“This year, customers can deposit refunds into Coinbase fee-free to start immediately putting their money to work,” Bipul Sinha, senior product manager at Coinbase, said in a statement. 

To go about this, users will need to file their taxes from the Coinbase section of the TurboTax website, set up their direct deposit accounts, choose whether to receive the refund in crypto or fiat currency, and enter their Coinbase account and routing numbers.

Coinbase, the largest crypto exchange in the US, launched a tax section in its platform on January 24 to help users track their taxable activity in one place. The exchange said users can receive free tax reports for up to 3,000 transactions from its crypto tax partner CoinTracker

Tax season in the US started on January 24 and will end on April 18 for most taxpayers, according to the Internal Revenue Service.