Cypto Currency Investments

Forum|Forum|4 years ago
February 21, 2022
3 replies
22 views

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

Level 15

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,

Wages & Income
Less Common Income
Miscellaneous Income,
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).

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CruzesaAuthor

Level 4

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?