Key Facts About Crypto Tax in Washington
Washington has no state income tax on wages, but the state's 7% capital-gains tax on long-term gains over $270K (as of 2025 indexed) hits high-volume crypto investors hard. Per-event crypto tax work is what determines whether you're over or under that threshold.
- Washington has no state income tax on wages but imposes a 7% tax on long-term capital gains above an indexed threshold.
- Federal reporting still requires Form 8949, Schedule D, and the digital-asset question on Form 1040.
- Crypto long-term gains count toward the WA capital-gains threshold, per-lot accuracy is critical.
- Seattle / Bellevue tech employees often combine RSUs and crypto, requiring combined basis tracking.
- As your crypto tax professional, Count On Sheep produces CPA-ready 8949 and Schedule D inputs. Your CPA files, or you load TurboTax.
Phone: (858) 434-7547
From Seattle to every metro in Washington
Washington crypto investors in Seattle, Tacoma, Bellevue, Spokane, Redmond and surrounding metros, served remotely from anywhere in the state.
Washington crypto investors in Seattle, Spokane, Tacoma, Vancouver, and Bellevue pay no state wage tax but face a 7% capital-gains tax on long-term gains above an indexed threshold. Seattle and Bellevue tech employees regularly cross that threshold. Per-lot crypto tax work distinguishing short and long-term is what determines the WA bill. We rebuild the on-chain ledger and hand off CPA-ready 8949, Schedule D, and Schedule 1 inputs. Count On Sheep is your crypto tax professional in Washington. Your CPA stays your CPA. We handle the crypto, they file the federal return.
Keep your CPA. We do the crypto.
Your CPA handles your business return, your W-2, your K-1s, your real estate. We are the crypto tax professionals who handle the wallet, exchange, and DeFi side, for Washington residents and beyond.
Former Big 4 + CPA leadership
Our team came up inside Big 4 firms and CPA leadership roles, then went deep into crypto. Same audit-grade discipline that ran public-company engagements, applied to your wallet history.
USA-based, hands-on team
A senior crypto tax professional reviews every engagement. No offshore data-entry pipeline, no automated black box. Every edge case, basis split, and DeFi classification is handled by humans here.
We stay in our lane
We don't file your taxes. We don't replace your CPA. We do the part most CPAs and most software can't, the crypto. Then your CPA files, or you file with TurboTax.
How Washington treats crypto for tax
Federal Crypto Tax Treatment (applies in Washington)
Reportable on Form 8949, Schedule D, Schedule 1 (or Schedule C for mining as a trade or business). Count On Sheep produces these inputs from your complete on-chain history.
What we untangle for Washington crypto investors
Four steps, start to finish
From anywhere in Washington.
Connect
You connect read-only access to your exchanges and share wallet addresses. CSV exports work too.
Reconcile
We pull and reconcile every wallet, exchange, and DeFi interaction into one ledger with cost basis, holding period, and proceeds per lot.
Specialist Review
A senior crypto tax professional reviews edge cases. Manual basis splits, DeFi classifications, bridge events, restaking, NFTs.
CPA-Ready Reports
You get CPA-ready Form 8949, Schedule D, Schedule 1 inputs (and Schedule C for mining), plus full workpapers. Hand to your CPA, or load into TurboTax.
Clean files, ready for your CPA
When the crypto tax work is done, you receive a tidy package: Form 8949 detail, Schedule D totals, Schedule 1 inputs for staking and airdrops, and the workpapers behind every number. That goes straight to your CPA, or into TurboTax.
Common questions, Washington edition
How does Washington's capital-gains tax interact with crypto?
WA imposes a 7% tax on long-term capital gains over an indexed threshold (~$270K for 2025). Crypto gains count toward that threshold. Whether you owe, and how much, depends on accurate per-lot crypto tax work distinguishing short-term from long-term and applying the right basis. Get the federal Form 8949 right and the WA computation follows.
Do I owe Washington tax on my crypto?
No. Washington has no state income tax, so your crypto gains are taxed only at the federal level. The crypto tax work, rebuilding cost basis across exchanges, wallets, and DeFi, still has to happen for the federal 8949 and Schedule D.
Do you file my taxes?
No. That's deliberate. Count On Sheep is a team of crypto tax professionals. Former Big 4 and CPA leadership, now crypto-native blockchain tax experts. We produce CPA-ready 8949, Schedule D, and Schedule 1 inputs. Your CPA files. Or you file with TurboTax. Staying out of preparation keeps the engagement conflict-free and the audit trail clean.
Can my CPA use your reports?
Yes. That is exactly the point. Our deliverable drops directly into the workflow your CPA already uses. Schedule D totals, 8949 detail, Schedule 1 inputs for staking and airdrops, and reconciliation workpapers behind every number.
Does this work with TurboTax?
Yes. If you self-file, the Count On Sheep deliverable plugs into TurboTax. You enter the 8949 totals (or import where supported), and our workpapers back up every line if you ever need to defend it.
How does a remote engagement work?
Everything is remote. We serve Washington residents from anywhere in the state. You grant read-only API access to your exchanges, share wallet addresses for on-chain history, and we handle the rest. No travel, no in-person meetings required.
What do I need to start?
Exchange account access or CSV exports, wallet addresses for every chain you have transacted on, any prior-year tax returns that touched crypto, and a brief on your DeFi activity. We scope from there.
How is the engagement priced?
First-time crypto tax engagements start at a $999 minimum. Larger or more complex engagements are scoped hourly at $500/hr after the initial call. All fees are quoted in writing before you commit.
About the Count On Sheep team
Count On Sheep is a USA-based team of crypto tax professionals. Former Big 4 accountants and CPA leadership, now crypto-native blockchain tax experts. We do hands-on crypto tax work for high-volume investors, funds, founders, and active traders, including Washington residents from Seattle, Tacoma, Bellevue and beyond.
We don't file taxes. We don't replace your CPA. Most CPAs don't do crypto, that's the gap we fill. We bridge DeFi and TradFi to produce the 8949, Schedule D, and Schedule 1 inputs your CPA can drop into your return.
Ready to get your crypto tax handled and CPA-ready?
Book a free scoping call or call us directly. We serve Washington residents remotely.