How does the IRS treat cryptocurrency earnings in terms of withholding tax?

3 answers

• Jan 10, 2022 · 3 years ago
  When it comes to cryptocurrency earnings, the IRS treats them as taxable income. This means that if you earn money from cryptocurrency, you are required to report it on your tax return and pay any applicable taxes. However, the IRS does not withhold taxes on cryptocurrency earnings by default. It is the responsibility of the taxpayer to calculate and pay the appropriate amount of taxes on their cryptocurrency earnings.
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• Jan 10, 2022 · 3 years ago
  Cryptocurrency earnings are subject to the same tax rules as other forms of income. The IRS considers cryptocurrency to be property, so any gains or losses from cryptocurrency transactions are treated as capital gains or losses. Withholding tax is not automatically deducted from cryptocurrency earnings, so it's important for individuals to keep track of their earnings and report them accurately on their tax returns.
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• Jan 10, 2022 · 3 years ago
  As an expert in the cryptocurrency industry, I can tell you that the IRS treats cryptocurrency earnings in terms of withholding tax in a similar way to other forms of income. The responsibility for calculating and paying taxes on cryptocurrency earnings lies with the individual taxpayer. At BYDFi, we advise our users to consult with a tax professional to ensure they are compliant with IRS regulations and accurately report their cryptocurrency earnings.
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