With the deadline for filing federal income tax returns in 2022, the Internal Revenue Service (IRS) – the United States federal tax law enforcement agency – released a list of reporting requirements for the general public dealing with cryptocurrencies.
Until 2021, the IRS uses the term “virtual currency” on its income tax related reporting forms, which has been updated to “digital assets.” All US citizens must answer questions about cryptocurrencies “regardless of whether they are involved in any transaction related to digital assets.”
Questions about digital asset income features in three forms – 1040, Individual Income Tax Return; 1040-SR, US Tax Return for Seniors; and 1040-NR, US Nonresident Alien Income Tax Return, which asks:
“At any time in 2022, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, gift or dispose of a digital asset (or a financial interest in a digital asset)?” “
While all tax filers must answer the above questions with a yes or no, the IRS provides nine instances when one should check “Yes,” as shown below:
The above recommendations are only for receiving, acquiring, transferring or selling cryptocurrencies for monetary benefit, including mining and staking. In addition to checking “yes,” eligible taxpayers must report all income related to digital asset transactions.
The only case when one can check “No” in the submission is if he only holds crypto assets, transfers assets between wallets he owns or buys cryptocurrencies against fiat currency.
related: US authorities will expand oversight of the crypto industry in 2023
A bill recently introduced during the first session of the Arizona State Senate in 2023 proposes that Arizona residents decide to amend the state constitution regarding property taxes.
As Cointelegraph reported, the SCR 1007 Bill passed two readings as part of the Senate calendar, on January 19 and January 23.