1040 Schedule 1 Cryptocurrency question

Forum|Forum|6 years ago
February 20, 2020
2 replies
26 views

My wife and I just filed our taxes, and now I am confused if we answered the question in regards to cryptocurrency correctly. The question was ambiguous at best. She bought Bitcoin in 2019 so we clicked the box yes. Was that correct or do we have to amend our taxes and check no? Thanks so much for you help. She did not trade it just hold it.

AmyC

Level 15

Buying the bitcoin is not a taxable event. Think of it like stock, it is only taxed when you sell it. No need to amend.

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SKT95Author

Level 2

Thanks but did we answernthe schedule 1 question correctly by checking yes. It says at any time durimg 2019 did you recieve sell send exchange or otherwise acquire financial interest. I would assume acquiring financial interest is buying and holding correct. I am very confused it should say did you buy sell recieve etc.

AmyC

Level 15

The program asks a lot of questions that do not go on your actual tax return. They are just guiding the program. That is one of those questions. There are always more questions that follow up. You would have been asked about selling stocks, or other things. As long as you did not actually enter the purchase of the cryptocurrency on your return, you are fine.

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