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frayray133
New Member

If you purchase around $40 worth of DOGE COIN, on Robinhood, do you have to report it, if you withdrew $99 worth when it was at a peak? However, only $69 went to my bank.

 
3 Replies
Cynthiad66
Expert Alumni

If you purchase around $40 worth of DOGE COIN, on Robinhood, do you have to report it, if you withdrew $99 worth when it was at a peak? However, only $69 went to my bank.

Yes.  Each sale of crypto during the tax year is reported on the 8949. If you had other non-crypto investments, they need to be reported on separate Form 8949s when you file your taxes.

 

Once you get to your Wages & Income screen, click Start next to Cryptocurrency. If you didn’t already select that you sold or traded cryptocurrency, add it by clicking “Add more income” on this screen and selecting cryptocurrency.

 

Cryptocurrencies like bitcoin are treated as “property” per IRS rules (IRS Notice 2014-21). When you trade cryptocurrency for a profit, you end up having to pay taxes on the resulting capital gains.

Hollowman2212
New Member

If you purchase around $40 worth of DOGE COIN, on Robinhood, do you have to report it, if you withdrew $99 worth when it was at a peak? However, only $69 went to my bank.

I purchased $27.32 worth of Dogecoin in early 2021 and then sold back the dogecoin on robin hood in October 2021 for $12.73 and I had a loss of $14.59.

 

do I need to report this even if its a loss? can I just take a loss and not report it? 

 

I am trying to make my taxes simple and don't care about the loss. 

ErnieS0
Expert Alumni

If you purchase around $40 worth of DOGE COIN, on Robinhood, do you have to report it, if you withdrew $99 worth when it was at a peak? However, only $69 went to my bank.

Possibly. You should report the sale and claim the loss @Hollowman2212.

 

However, you maybe OK not reporting it. With crypto sales, the IRS may not know how much you paid unless you report a loss. They may assume you made $12.73. It's possible that could cause you to owe a few dollars in tax.

 

If you leave it off – and adding $12.73 causes you to owe some tax – the IRS may send you a letter. You can pay the amount due or file an amended return with the loss and maybe get a few dollars back.

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