Da Internal Revenue Service (IRS), da kine dat make sure everybody pay dey taxes, just put out a list of rules fo’ da general public ’bout crypto. As da time fo’ file 2022 federal income tax return come close, da IRS say if you buy, transfer, or sell crypto, you gotta check “yes” on da form. Dey no call it “virtual money” no mo’, now dey call it “digital assets.”
Everybodys gotta answer all da crypto questions, no matta how much you do wit it. Da question ’bout digital asset income goin show up on three different tax forms, like da 1040 Individual Income Tax Return, da 1040-SR US Tax Return fo’ da kupuna, and da 1040-NR US Nonresident Alien Income Tax Return. Da IRS want you just check “yes” or “no” fo’ da questions, but dey give some exceptions.
Da taxes come from makin money from buying, selling, transferring, or mining crypto. If you make money from dis, you gotta write it down and check “yes” on da form. But if you just hold crypto or transfer it between wallets or buy it wit regular money, you can check “no.” Recently, some peeps try make it so people in Arizona can vote to change da state constitution to add a tax fo’ crypto.