Key Facts About Crypto Tax in Washington, DC
Washington, DC pairs one of the highest income tax rates in the country, 10.75% at the top, with a workforce whose crypto is uniquely scrutinized: federal employees, contractors, and policy professionals who disclose their holdings as a condition of employment. The District taxes capital gains as ordinary income, and it taxes only residents. Maryland and Virginia commuters answer to their home states instead.
- Washington, DC taxes crypto gains as ordinary income at rates up to 10.75%, with no long-term discount. The top rate applies above $1 million of taxable income.
- The District cannot tax nonresidents. Maryland and Virginia commuters who work in DC pay tax only to their home states, so residency, not workplace, decides everything.
- Spending 183 days or more in the District while maintaining a home there makes you a statutory resident for DC tax purposes, even if your domicile is elsewhere.
- Washington, DC is the policy capital of crypto: the Blockchain Association is headquartered downtown, major exchanges run policy offices here, and the GENIUS Act, the first federal stablecoin law, was signed in July 2025.
- A $500,000 long-term crypto gain costs a top-bracket DC resident about $172,750 in combined federal and District tax, versus roughly $119,000 for a resident of a no-tax state.
- Count On Sheep delivers CPA-ready 8949, Schedule D, and Schedule 1 inputs for Washington, DC residents. Your CPA files, or you file with TurboTax.
Phone: (858) 434-7547
From Capitol Hill to every quadrant of the District
Washington, DC crypto investors in Capitol Hill, Georgetown, Dupont Circle, and Navy Yard are served remotely from anywhere in the District. The same is true for the federal workforce and policy professionals whose returns we support up and down the East Coast.
Washington, DC taxes capital gains as ordinary income at rates up to 10.75%, one of the highest top rates in the nation, and it taxes only residents: federal law bars the District from taxing the income of Maryland and Virginia commuters. That makes residency the controlling fact for every crypto disposal in the metro, and per-lot dates the evidence. The District is also crypto's policy capital, home to the Blockchain Association and the exchange policy offices that shaped the GENIUS Act of 2025. Count On Sheep, a USA-based team with former Big 4 leadership, rebuilds wallet, exchange, and DeFi histories into CPA-ready Form 8949, Schedule D, and Schedule 1 inputs for DC residents. We do not file. Your CPA files, or you file with TurboTax.
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, DC 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, DC treats crypto for tax
Federal Crypto Tax Treatment (applies in Washington, DC)
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, DC crypto investors
Four steps, start to finish
From anywhere in Washington, DC.
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.
Talk through your crypto tax situation first.
Every wallet, exchange, and DeFi history is different. Start with a consultation so we can understand the work, confirm what your CPA needs, and outline the cleanest path forward for your Washington, DC return.
Common questions, Washington, DC edition
Does Washington, DC tax crypto gains?
Yes. The District taxes capital gains as ordinary income at rates up to 10.75%, with no preferential long-term rate. The federal holding-period discount still applies on the federal side, which is why lot-level acquisition dates are worth real money to a DC filer.
What is the DC income tax rate on crypto?
DC brackets run from 4% to 10.75%. Most high earners land in the 8.5% to 9.75% range, and taxable income above $1,000,000 pays 10.75% at the margin. Crypto gains, staking rewards, and mining income all count as ordinary income for District purposes.
I live in Virginia or Maryland and work in DC. Does DC tax my crypto?
No. Federal law bars the District from taxing nonresident income, so commuters pay tax on crypto gains only to their home states. Virginia and Maryland each have their own rates and rules, which makes residency the single most valuable fact on a metro-area return.
What makes me a DC resident for tax purposes?
Domicile in the District, or statutory residency: maintaining a home in DC and spending 183 days or more there during the year. A mid-year move between DC, Maryland, and Virginia splits the year, and per-lot disposal dates decide which jurisdiction taxes which gain.
Do you file my DC 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 the federal return and the DC D-40, or you file with TurboTax.
Can federal employees and contractors hold crypto?
Generally yes, subject to agency ethics rules and financial disclosure requirements, and that determination belongs to you and your ethics office. Our part is the records: a reconciled ledger of holdings and transactions that matches what your disclosures and your tax return both say.
Can my DC 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.
How does a remote engagement work?
Everything is remote. We serve Washington, DC residents from anywhere in the District. 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.
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, DC residents from Capitol Hill, Georgetown, Dupont Circle 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, DC residents remotely.