Most Important Issues to Resolve Before Filing Your Taxes

After connecting your wallets and reviewing your main dashboard, the next step is to fix the most common issues that can affect your tax results.

Use this checklist to clean up important transactions before finalizing your account.

One of the most important types of errors to fix is missing basis errors.

Missing basis errors occur when Awaken is unable to find your original purchase or receipt transactions of tokens that you’re later selling. These errors can steeply inflate your capital gains because the system treats assets with a missing basis as if they had a $0 cost basis.

You can find your missing errors on using the search function on your transactions page by running a filtered search for assets missing purchase price:

Review these transactions and add the missing information where needed.

See this guide to help you troubleshoot missing basis errors.

You can also watch this video tutorial on resolving missing basis.

Next, check your high-value transactions by navigating to the transactions page, filtering for the year you are working on, and clicking the “value” column to sort from largest cap gain/loss to smallest.

These transactions can have a large impact on your tax totals, so it is important to make sure they are labeled correctly.

If a large transaction looks wrong, click into it and review the labels, assets, values, and income treatment. Click through to the block explorer if you need help jogging your memory.

Once finished, click the “income” toggle just underneath the search bar to sort for your largest income transactions as well.

Sometimes, withdrawals may appear as income if they are missing the correct context or haven’t been synced with the relevant deposit transaction.

When you check through your high-income transactions, keep an eye out for withdrawals. Click into each one and verify that the income is calculated correctly.

Withdrawals should only incur income if rewards tokens were included in the transaction. If the withdrawal was only principal, the income should be $0. If the income appears too high, you can fix it with the “edit income” button under the notes box.

Please also read this in-depth tutorial for correcting income transactions.

Before finalizing your tax review, make sure to check for:

Fixing these issues first can help prevent incorrect gains, inflated income, or missing cost basis from affecting your final tax report.