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Saturday, April 1, 2023

US IRS reminds taxpayers to include their cryptocurrencies in their 2022 tax year returns

As the deadline for filing 2022 income tax returns approaches, the Internal Revenue Service (IRS) – an agency for the enforcement of federal tax laws in the United States – published a list of information requirements for the general public involved in cryptocurrency trading.

Until 2021, the IRS used the term “virtual currency” on income tax return forms, which has been updated to “digital asset”. All US citizens are required to answer cryptocurrency questions “regardless of whether they have transacted any digital assets.”

The question on income from digital assets appears in three forms: 1040, Individual Income Tax Declaration; 1040-SR, Income Tax Declaration for the Elderly; and 1040-NR, Nonresident Foreign Income Tax Declaration, which asks:

“At any time during 2022, did you: (a) receive (as a prize, prize, or payment for goods or services); or (b) sell, trade, give away, or otherwise dispose of any digital asset to dispose of (or have a) financial interest in digital assets)?”

Although all tax filers must answer yes or no to the above question, the IRS identifies nine cases in which a “yes” check must be made, as shown below:

IRS checklist of cryptocurrency-related returns. Source: irs.gov

The above recommendations are limited to receiving, earning, transferring or selling cryptocurrency in order to achieve any monetary gain, including mining and staking. In addition to checking “yes”, eligible taxpayers must report all income related to their digital asset transactions.

Us Irs Reminds Taxpayers To Include Their Cryptocurrencies In Their 2022 Tax Year Returns
Instructions for Amended 2022 Form 1040 (and 1040-SR). Source: irs.gov

The only cases where “no” can be marked on the statement are if you solely held crypto assets, moved assets between your portfolios, or bought cryptocurrencies against fiat currencies.

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 as it pertains to property taxes.

As Cointelegraph reported, SCR 1007 took two readings on January 19 and 23 as part of the state senate’s schedule.

the explanation: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be construed as financial advice or investment recommendation. All investments and commercial dealings involve risk and it is the responsibility of each individual to conduct appropriate research before making any investment decision.

Investing in crypto assets is not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed at or accessible to investors in Spain.

World Nation News Desk
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