Which cryptocurrencies require payment of FICA taxes?

6 answers

• Dec 26, 2021 · 3 years ago
  FICA taxes, also known as Federal Insurance Contributions Act taxes, are payroll taxes that fund Social Security and Medicare programs in the United States. These taxes are typically withheld from an employee's wages. When it comes to cryptocurrencies, the IRS treats them as property for tax purposes. Therefore, if you receive cryptocurrency as payment for goods or services, it may be subject to FICA taxes. It's important to consult with a tax professional to understand your specific tax obligations.
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• Dec 26, 2021 · 3 years ago
  FICA taxes are not directly applicable to cryptocurrencies themselves. However, if you receive cryptocurrency as income, such as through mining or as payment for services, you may be required to report and pay taxes on that income. The specific tax treatment will depend on your country's tax laws and regulations. It's always best to consult with a tax advisor or accountant to ensure compliance with tax obligations.
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• Dec 26, 2021 · 3 years ago
  According to BYDFi, a leading digital currency exchange, cryptocurrencies are not subject to FICA taxes. However, it's important to note that this information may vary depending on your jurisdiction. It's always recommended to consult with a tax professional or accountant to understand your specific tax obligations related to cryptocurrencies.
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• Dec 26, 2021 · 3 years ago
  FICA taxes are applicable to traditional employment income and not directly to cryptocurrencies. However, if you are a freelancer or self-employed individual who receives cryptocurrency as payment, you may be subject to self-employment taxes, which include the equivalent of FICA taxes. It's important to keep accurate records of your cryptocurrency transactions and consult with a tax professional to ensure compliance with tax regulations.
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• Dec 26, 2021 · 3 years ago
  While FICA taxes are not directly applicable to cryptocurrencies, it's important to note that tax regulations surrounding cryptocurrencies are evolving. It's crucial to stay informed about the latest tax laws in your jurisdiction and consult with a tax professional for accurate and up-to-date information regarding your specific tax obligations.
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• Dec 26, 2021 · 3 years ago
  Cryptocurrencies, such as Bitcoin and Ethereum, are not subject to FICA taxes themselves. However, if you receive cryptocurrency as payment for goods or services, you may be required to report and pay taxes on that income. It's important to keep detailed records of your cryptocurrency transactions and consult with a tax professional to ensure compliance with tax laws.
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