Crypto mining income Federal filing if AGI is below the minimum filing requirements

[gmntr40]

I am under 65, single.

For the Tax Year 2017 I filed a Federal return reporting an AGI of $7500. (That came from 1099-INT and other MISC income not related to crypto)

During the same 2017 year I bought a mining contract that generated $2400 income.

I did not know exactly how to calculate and handle that income and I did not report it.

(I know that income value number now, thanks to the general availability of crypto tax software)

So for the year 2017 my total AGI including crypto was $9900, but I declared $7500.

In 2019 I moved the generated virtual currency from a private wallet to a Coinbase account.

(I assume no taxable event in this transaction)

Questions:

1) Should I still file an amended 2017 return and include the crypto property income? My AGI would still be below the filing threshold, isn't that correct?

2) If I file the amended return, the new cost basis of the virtual currency would be the $2400, correct?

3) If I am not required to file and I do not file an amended return, what is the cost basis of the virtual currency that sits now in my Coinbase account?

[JeffreyR77]

You are correct, even with the crypto currency income, you are below the filing threshold amount and were not required to file a 2017 tax return. 

2017 tax year returns are open for IRS review until April 15, 2020.  This date is the date the IRS has to audit 2017 returns; if an inquiry into a 2017 return hasn't been made by this date, the year is considered closed and no action can be taken against a 2017 return unless fraud is suspected.

It is also the date that an amended return would need to be filed to claim a refund by a taxpayer.  

Your cost basis in 2017 was $2,400.  Your cost basis remains $2,400 unless your transfer to Coinbase required a sale to transfer to Coinbase.