Is it necessary to file a 1099 for cryptocurrency earnings under $600?

3 answers

• Mar 19, 2022 · 3 years ago
  Yes, you are required to report all cryptocurrency earnings, regardless of the amount. The IRS considers cryptocurrency as property, and any gains or losses from its sale or exchange are subject to taxation. Even if your earnings are below $600, you still need to report them on your tax return. It's important to accurately report your earnings to avoid any potential penalties or audits.
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• Mar 19, 2022 · 3 years ago
  No, you don't need to report cryptocurrency earnings under $600. The IRS has set a threshold of $600 for reporting income from certain sources, including cryptocurrency. If your earnings are below this threshold, you are not required to report them on your tax return. However, it's always a good idea to keep track of your earnings and consult with a tax professional to ensure compliance with the latest tax laws.
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• Mar 19, 2022 · 3 years ago
  According to BYDFi, a leading cryptocurrency exchange, it is advisable to report all cryptocurrency earnings, even if they are under $600. While the IRS may not require reporting for earnings below this threshold, it's better to err on the side of caution and maintain accurate records. Reporting your earnings demonstrates transparency and can help you avoid any potential issues in the future.
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