@InklebertHumperdink wrote:
If this is kept up next year, would I have to do anything different as far as income tax goes since I still wouldn't have a job?
As long as you continue to have small losses, and no other income, you do not have to do anything different. You would still have to file a tax return to show the losses, even though you would not have to pay any tax.
You might technically not be required to file a tax return, but there are at least two reasons that you should file.
One reason to file a tax return each year is that the IRS doesn't know that you have a loss unless you report it. They are on the lookout for cryptocurrency transactions that are not properly reported. They get information from Coinbase that shows the amount you received for the sales. But they don't know your basis, so they would think that the full amount that you received is all profit, and therefore taxable income.
Another reason to file a tax return is that, if you have an investment loss and no income to offset it against, you would have a small net capital loss. It wouldn't do you any good that year, but you can carry the loss over to future years. Some day you will have taxable income, and you will be able to use the capital loss carryover to reduce your taxable income. To do this you have to file a tax return every year and carry the loss from year to year until it's used.
