As the deadline to file the 2022 income tax return approaches, the Internal Revenue Service (IRS) – an agency for the application of federal tax laws in the United States – published a list information requirements for the general public involved in cryptocurrency trading.
Until 2021, the IRS used the term “virtual currencies” on income tax related return forms, which have been updated to “digital assets.” All US citizens are required to answer cryptocurrency questions “regardless of whether they transacted any digital assets.”
The question on income from digital assets appears on three forms: 1040, Personal Income Tax Declaration; the 1040-SR, Income Tax Declaration for the Elderly; and 1040-NR, Nonresident Alien Income Tax Declaration, which asks:
“At any time during 2022, did you: (a) receive (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)?”
Although all tax filers must answer the above question with a yes or no, the IRS sets out nine cases in which “Yes” must be checked, as shown below:
The above recommendations boil down to receiving, earning, transferring or selling cryptocurrency in order to receive 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 cases where a “No” can be marked on the statement is if you have held crypto assets purely, transferred assets between portfolios you own, or purchased cryptocurrencies against fiat currencies.
A bill recently introduced during the first session of the Arizona State Senate in 2023 proposed that Arizona residents decide on amending the State Constitution as it pertains to property taxes.
As Cointelegraph reported, SCR 1007 underwent two readings as part of the state Senate’s schedule, on January 19 and 23.
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