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Level 1
posted Apr 16, 2022 11:27:47 PM

Do I need to file other incomes (crypto) as F1 student?

Hi,

I was filing forms through TurboTax but was later referred to Sprintax since TurboTax does not generate 1040-NR forms as I am a non-resident alien on F1 visa.

I have some taxable crypto transactions for which I got form 8949 and schedule D (generated from some crypto tax software). However, when entering info on Sprintax there was no option of adding other crypto incomes such as airdrops, crypto interests, rewards (Coinbase earn), and when I asked their customer support, the customer representative told me that I don't need to mention and she was very sure about it.   

Hence, I want to make sure that in my case do I need to mention these other incomes or not? I saw that these transactions are considered as normal incomes and have the same tax as other incomes. But she was very confident that I don't need to add them. Can someone please confirm? I don't want to re-file my taxes again after I file once.

 

Thanks,

Gagan 

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1 Best answer
Expert Alumni
Apr 17, 2022 6:28:59 AM

You should answer “no” if you have not engaged in any transactions involving virtual currency during the 2021 tax year, according to the IRS, or if your activities were limited to:

 

  • Holding virtual currency in your own wallet or account.
  • Transferring virtual currency between your own wallets or accounts.
  • Purchasing virtual currency using real currency, including purchases using real currency electronic platforms such as PayPal and Venmo.
  • Engaging in a combination of holding, transferring, or purchasing virtual currency as described above.

 

The following list covers the most common transactions in virtual currency that require checking the “yes” box on your 1040 forms, per the IRS:

 

  • The receipt of virtual currency as payment for goods or services provided.
  • The receipt or transfer of virtual currency for free (without providing any consideration) that does not qualify as a bona fide gift.
  • The receipt of new virtual currency as a result of mining and staking activities.
  • The receipt of virtual currency as a result of a hard fork.
  • An exchange of virtual currency for property, goods, or services.
  • An exchange/trade of virtual currency for another virtual currency.
  • A sale of virtual currency.
  • Any other disposition of a financial interest in virtual currency.

 

See IRS FAQs regarding the Virtual Currency Question - the rules are the same whether you file Form 1040, 1040-SR, or 1040-NR.

2 Replies
Expert Alumni
Apr 17, 2022 6:28:59 AM

You should answer “no” if you have not engaged in any transactions involving virtual currency during the 2021 tax year, according to the IRS, or if your activities were limited to:

 

  • Holding virtual currency in your own wallet or account.
  • Transferring virtual currency between your own wallets or accounts.
  • Purchasing virtual currency using real currency, including purchases using real currency electronic platforms such as PayPal and Venmo.
  • Engaging in a combination of holding, transferring, or purchasing virtual currency as described above.

 

The following list covers the most common transactions in virtual currency that require checking the “yes” box on your 1040 forms, per the IRS:

 

  • The receipt of virtual currency as payment for goods or services provided.
  • The receipt or transfer of virtual currency for free (without providing any consideration) that does not qualify as a bona fide gift.
  • The receipt of new virtual currency as a result of mining and staking activities.
  • The receipt of virtual currency as a result of a hard fork.
  • An exchange of virtual currency for property, goods, or services.
  • An exchange/trade of virtual currency for another virtual currency.
  • A sale of virtual currency.
  • Any other disposition of a financial interest in virtual currency.

 

See IRS FAQs regarding the Virtual Currency Question - the rules are the same whether you file Form 1040, 1040-SR, or 1040-NR.

Level 1
Apr 17, 2022 12:00:26 PM

So basically, even if it's other income, I should follow the rules based on the types of transactions I do. Thank you!