Here's how to report 2022 crypto losses on your tax return

The latest crypto rally may be good news for digital currency investors. But if you’re still recovering from last year’s losses, it may be possible to score a tax break on your 2022 return.

The crypto market plunged by nearly $1.4 trillion in 2022 after a series of bankruptcies, liquidity issues and the collapse of FTX, one of the biggest crypto exchanges.

If you’re itching to claim a crypto loss on your taxes, there are a few things to know, experts say. One of the silver linings of plummeting assets is the chance to leverage tax-loss harvesting, or using losses to offset gains.