<prompt> Human: I know this is based off of the cost basis right? I know i have had it since 2012. For instance what I am asking is, lets say i sold 30K, does 30K then get added to my income and am i then taxed on that?Asking because not sure how much im going to have to pay towards my tax refund...set paycheck witholding to 2, i went from 6K-12K in crypto etc etc...very nervous that im not gonna be able to pay the refund. Getting rid of loans debt was worth it though.  <response>: So you will be paying long term capital gains. Yes, itll be based off of what you profited off the sale. If you bought it for 30k and sold for 30k, no capital gains. If you bought it for 7k and sold for 30k, you pay taxes on the 23,000 in supplementary income you received. Its not just a straight gain of what you cashed out on. 