Cypto Currency Investments

[Cruzesa]

Hi: Am I REQUIRED to report my crypto currency investments with or without a 1099? When looking at the company's on-line site, I was able to get the IRS forms already filled out (Form 8949 and Form 1040 Schedule 1), but they did not provide a 1099. Since I'm only dabbling in this market right now, the Schedule 1 shows a "Miscellaneous Crypto Income" of $17.50. Is it even worth reporting this?

[JohnB5677]

Yes.  All income should be reported to the IRS, but they pay close attention to anything associated with Cryptocurrency.  This is a new area for them, and people have avoided claiming it in the past.

You stated that this was "Miscellaneous Crypto Income".  This is how to report it.

Select Federal from the left menu,

1. Wages & Income
2. Less Common Income
3. Miscellaneous Income,
4. Other income not already reported on a Form W-2 or Form 1099

If you later sell it, you'd pay the capital gains tax (short or long-term, depending on how long you held it).

[Cruzesa]

Thank you for your response. Can you point me to the IRS Regulation that requires crypto investments be reported? I mean, if this is required to be reported, why didn't the company provide a 1099 instead completing the IRS tax forms for me?

Also, I indicated that the "income" being reported is only $17.00. Is it worth reporting this?

[Cruzesa]

And not to get too precise, but following the guidance you provided, I'd be reporting this as "wages", which they are not wages. It is an investment, so why wouldn't this be reported under the investment part of the program?