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News EssentialsThe Newsroom TopicsIRS Resources | Issue Number: IR-2022-61Inside This IssueIRS reminds taxpayers they must check a box on Form 1040, 1040-SR or 1040-NR on virtual currency transactions for 2021 WASHINGTON — The IRS reminds taxpayers that there is a virtual currency question at the top of Form 1040, Form 1040-SR and Form 1040-NR. It asks: "At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?" All taxpayers filing Form 1040, Form 1040-SR or Form 1040-NR must check one box answering either "Yes" or "No" to the virtual currency question. The question must be answered by all taxpayers, not just taxpayers who engaged in a transaction involving virtual currency in 2021. When taxpayers can check "No"
When taxpayers must check "Yes"
If a taxpayer disposed of any virtual currency that was held as a capital asset through a sale, exchange or transfer, they must check "Yes" and use Form 8949 to figure their capital gain or loss and report it on Schedule D (Form 1040). If a taxpayer received any virtual currency as compensation for services or disposed of any virtual currency that they held for sale to customers in a trade or business, they must report the income as they would report other income of the same type (for example, W-2 wages on Form 1040, 1040-SR, or 1040-NR, line 1, or inventory or services from Schedule C on Schedule 1). For more information, see page 17 of the 2021 Form 1040 Instructions and visit IRS.gov for general information on virtual currency and other related resources. Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message. |
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