As the 2022 federal income tax return filing deadline approaches, the Internal Revenue Service (IRS), the U.S. federal tax law enforcement agency, has released a list of reporting requirements for the general public dealing with cryptocurrencies.
Until 2021, the IRS used the term “virtual currency” on income tax reporting forms, but it has been updated to “digital assets.” All U.S. citizens are required to answer questions about cryptocurrencies “regardless of whether they were involved in transactions involving digital assets.”
Questions about income from digital assets are characterized by three forms of 1040, personal income tax returns. 1040-SR, U.S. Tax Return for Seniors. and 1040-NR, the U.S. Nonresident Alien Income Tax Return requires:
“At any point in 2022, (a) received (as a reward, reward or payment for property or services)? , or otherwise dispose of it?”
While all tax filers must answer yes or no to the above questions, the IRS has provided nine examples where you should check yes, as shown below.
The above recommendations boil down to receiving, earning, transferring or selling cryptocurrencies for financial gain, including mining and staking. In addition to checking yes, eligible taxpayers must report all income related to digital asset transactions.
The only cases where you can check “no” on your filings are if you purely hold crypto assets, transfer assets between wallets you own, or buy crypto against fiat currency.
Related: US Authorities Increase Scrutiny Of Crypto Industry In 2023
A bill recently introduced during the first session of the Arizona Senate in 2023 proposed to let Arizona residents decide on amendments to the state constitution regarding property taxes.
As reported by Cointelegraph, the SCR 1007 bill passed two readings on Jan. 19 and Jan. 23 as part of the state Senate calendar.