As the deadline to file your 2022 federal income tax return approaches, the Internal Revenue Service (IRS), an enforcement agency for United States federal tax laws, has released a list of filing requirements. reports for the general public dealing with cryptocurrencies.
Until 2021, the IRS used the term “virtual currencies” on income tax related reporting forms, which have been upgraded to “digital assets.” All US citizens must answer questions about cryptocurrencies “regardless of whether they participated in any transactions involving digital assets.”
He Question about the income characteristics of digital assets in three ways: 1040Personal Income Tax Declaration; 1040-SR, US Tax Return for Seniors; Y 1040-NRthe U.S. Nonresident Alien Income Tax Return, which asks:
“At some time during 2022, you: (a) received (as a reward, prize, or payment for goods or services); or (b) sell, trade, give away, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”
While all tax filers should answer the above question with a yes or no, the IRS provided nine instances where “Yes” should be checked, as shown below:
The above recommendations boil down to receiving, earning, transferring, or selling cryptocurrency for any monetary benefit, including mining and staking. In addition to checking “yes,” eligible taxpayers must report all income related to their digital asset transactions.
The only instances where one can check “No” on the submission is if they have been solely in possession of the crypto assets, have transferred assets between holding wallets, or have purchased crypto against fiat currencies.
Related: US authorities will intensify scrutiny of the crypto industry in 2023
A bill recently introduced during the first session of the Arizona State Senate in 2023 proposed that Arizona residents decide to amend the state constitution regarding property taxes.
As Cointelegraph reported, SCR 1007 went through two readings as part of the state Senate schedule, on January 19 and 23.
