What is the difference between a 1099 and a 1099k in the context of cryptocurrency?

3 answers

• Dec 28, 2021 · 3 years ago
  A 1099 form is used to report various types of income, including cryptocurrency earnings. It is typically issued by an employer or a financial institution to individuals who have received income from them. On the other hand, a 1099k form is specifically used to report payment card and third-party network transactions, such as those made through cryptocurrency exchanges. It is issued by payment settlement entities to individuals who have received payments exceeding a certain threshold. In summary, a 1099 is more general and covers different types of income, while a 1099k is more specific and focuses on payment card and third-party network transactions, including cryptocurrency transactions.
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• Dec 28, 2021 · 3 years ago
  Alright, here's the deal. A 1099 form is like a catch-all for reporting income, including cryptocurrency earnings. It's what you get from your employer or financial institution to report how much moolah you made. Now, a 1099k is a bit more specific. It's all about reporting payment card and third-party network transactions, like the ones you make on crypto exchanges. So, if you've been doing some serious trading and made some big bucks, you might get a 1099k to report those transactions. Got it?
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• Dec 28, 2021 · 3 years ago
  When it comes to reporting your cryptocurrency transactions, it's important to understand the difference between a 1099 and a 1099k. A 1099 is a form that is used to report various types of income, including cryptocurrency earnings. It is typically issued by an employer or a financial institution. On the other hand, a 1099k is a form that is specifically used to report payment card and third-party network transactions, such as those made through cryptocurrency exchanges. It is issued by payment settlement entities to individuals who have received payments exceeding a certain threshold. So, if you have received income from your employer or financial institution, you will likely receive a 1099. If you have made transactions through cryptocurrency exchanges and have received payments exceeding the threshold, you may receive a 1099k. It's important to keep track of your transactions and report them accurately to comply with tax regulations.
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