• Tight deadline: Due to the tight deadline, our team had to focus on the most critical aspects of the integration. This meant that some features were unintuitive and required manual data input.

• Staffing issues: During this project, we lost two members of our teams, which meant we had to make adjustments on the fly.

• Legacy system: H&R Block's tax product is a legacy system, which made it challenging to integrate with CoinTracker's modern API.

Paper Research

Navigating Crypto Tax Regulations: Penalties and Reporting Requirements

During my initial research, I explored online resources about cryptocurrency tax, focusing on articles relevant to H&R Block users who hold and trade crypto. Taxcare.com provided valuable insights, helping me identify user pain points and solidify the need for a product that addresses these issues.

Key Points:

• American citizens must report cryptocurrency holdings and transactions to the IRS.

• Failing to comply can result in significant penalties:

  • 20% penalty for negligence-related underreporting.

  • 75% penalty for willful disregard or fraud.

• Additionally, crypto must be reported on Form 8949, which can be complex and time-consuming.

Americans fail to file their crypto taxes due to a lack of awareness, the complex filing process, and fear of penalties.

• Lack of awareness: Many Americans are simply unaware that they are required to pay taxes on their crypto gains.

• Complex filing process: The process of filing crypto taxes can be complex and time-consuming, especially for those who are not familiar with cryptocurrency or tax law.

• Fear of penalties: The IRS has imposed hefty penalties on taxpayers who fail or improperly file their crypto taxes, which can deter some people from filing even if they are aware of their obligations.

Competitive Analysis *

H&R Block's top Competitors and Key Features *

Empathy

Understanding User Struggles: A Deep Dive into Crypto Taxation

Survey: To understand our users' needs and pain points, we conducted a user survey, user interviews, and usability testing.

The survey was answered by 100 users who had filed crypto taxes in the past year. The survey asked about their experiences with filing crypto taxes, their pain points, and their preferences for filing crypto taxes.

• The complexity of crypto taxes

• The lack of clear guidance from the IRS

• The cost of professional tax preparation

User Interview: The user interviews were conducted with 10 users who had filed crypto taxes in the past year. The interviews were semi-structured and allowed us to delve deeper into the users' experiences and pain points.

Questions we asked our users:

• How do you estimate the value of your cryptocurrency holdings?

• Have you ever made an error in filing your crypto taxes? If so, what was the error, and how did it affect you?

• What are your biggest pain points when it comes to filing crypto taxes?

• What are some of the challenges you face in tracking your crypto transactions?

• What are your thoughts on using crypto tax software or hiring a professional tax preparer to help you file your crypto taxes?

User Persona

Inside the H&R Block Experience: A User's Lens

Using data from surveys and interviews, we've created a persona representing the typical H&R Block user, highlighting their needs and experiences with the platform.

User Empathy Map

By using an empathy map, we were able to gain deeper insights into Alex's perspective by visually representing his thoughts, feelings, actions, and what he says. This categorization helped us understand his motivations and empathize with his experiences.

User flow

Mapping Out Our Users’ Footsteps

This is the flowchart of the user journey through the DIY app to the CoinTracker Landing page app.

The pre-defined brand colors, iconography, and typography instantly established consistency and brand identity. The reusable components like buttons, input form fields, and navigation bars streamlined development, allowing users a clear path to Corntracker’s 8949 form.

Mobile Screens

The mobile screen layout of a cryptocurrency hub, with CTAs to add transactions and connect to Cointracker, transaction input screen, and after-transaction screen.

Desktop Screens

Desktop screen layout of a cryptocurrency hub, with CTAs to add transactions and connect to Cointracker, transaction input screen, and after-transaction screen.

Prototype

Try our new H&R Block prototype to easily file your crypto taxes with CoinTracker!

Final results

H&R Block and CoinTracker Partner to Simplify Crypto Taxes

In the first phase of the H&R Block-CoinTracker partnership, we developed a solution to consolidate users' crypto portfolios into the 8949 form. This was the immediate problem that needed to be solved for the current tax season. As a contract employee, I was unable to participate in the test study for this feature, but the product manager and stakeholders agreed that the solution we created was successful.

Key Takeaway

Key Takeaways from the Project

Through my involvement in the H&R Block and CoinTracker partnership, I garnered invaluable insights and experiences. Here’s what I learned and how I intend to apply these lessons to future projects:

• The importance of collaboration: This project required close collaboration between the H&R Block and CoinTracker teams, as well as with the content writer and project manager. I learned that it is essential to have open lines of communication and to be willing to compromise in order to achieve a common goal.

• The need for flexibility: Things don't always go according to plan. When working on a tight deadline with limited resources, it is important to prioritize the most critical features and be flexible enough to adapt to changes.

• The value of user feedback: We conducted user surveys and interviews to understand the needs and pain points of our users. This feedback was invaluable in helping us to design a solution that was both user-friendly and effective.

I am grateful for the opportunity to have worked on this project and to have learned so much from it. I will use the lessons I learned to improve my work on future projects.

Check Out other Case Studies