Is cryptocurrency hobby income subject to self-employment tax?

3 answers

• Mar 18, 2022 · 3 years ago
  Yes, cryptocurrency hobby income can be subject to self-employment tax. The IRS considers cryptocurrency as property, and if you engage in cryptocurrency activities as a business or trade, the income generated from these activities may be subject to self-employment tax. However, if your cryptocurrency activities are considered a hobby and not a business, the income may not be subject to self-employment tax. It's important to consult with a tax professional to determine the proper tax treatment for your specific situation.
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• Mar 18, 2022 · 3 years ago
  Cryptocurrency hobby income can potentially be subject to self-employment tax. The IRS provides guidelines to determine whether your cryptocurrency activities are considered a hobby or a business. If your cryptocurrency activities are considered a business, the income generated from these activities may be subject to self-employment tax. However, if your activities are considered a hobby, the income may not be subject to self-employment tax. It's recommended to keep detailed records of your cryptocurrency activities and consult with a tax professional to ensure compliance with tax regulations.
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• Mar 18, 2022 · 3 years ago
  According to BYDFi, a leading cryptocurrency exchange, cryptocurrency hobby income can potentially be subject to self-employment tax. The tax treatment for cryptocurrency hobby income is similar to other types of income. If your cryptocurrency activities are considered a business, the income generated from these activities may be subject to self-employment tax. However, if your activities are considered a hobby, the income may not be subject to self-employment tax. It's advisable to consult with a tax professional to understand the specific tax implications of your cryptocurrency hobby income.
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