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Level 3
posted Mar 12, 2025 4:45:48 PM

crypto testnet token enquiry

For the crypto, there is one called testnet token, which has no real value and  it is used to test the blockchain and help develop/optimize the program. Do I need to report the transactions on it to IRS? 

 

Thanks,

 

Helen

0 5 516
5 Replies
Expert Alumni
Mar 12, 2025 4:48:53 PM

No, you can ignore the testnet token transactions; those are not real transactions and do not affect your tax return.   

Level 3
Mar 12, 2025 5:01:25 PM

Level 3
Mar 13, 2025 9:06:39 AM

many thanks. Even getting some free testnet tokens from others or websites, no need to report them to IRS,right? @DawnC 

 

Helen 

Level 3
Mar 17, 2025 8:47:54 AM

apologies. Did you see my previous question @DawnC ?

 

Thanks,

 

Helen

Expert Alumni
Mar 17, 2025 10:46:34 AM

That is correct.   The testnet tokens allow the developers to test their apps and other functionalities without the risk of losing real assets and they have no value.    However, if you receive an airdrop of tokens with value, that would need to be reported.   But valueless testnet tokens/coins do not need to be reported.