What are the steps to determine MAGI from W-2 for individuals receiving income from cryptocurrency investments?

1 answers

• Nov 27, 2021 · 3 years ago
  Determining MAGI from W-2 for individuals receiving income from cryptocurrency investments is crucial for accurate tax reporting. Here's a step-by-step guide: 1. Collect all your W-2 forms that reflect your income. 2. Locate the 'Wages, tips, other compensation' box on each W-2 form. 3. Sum up the amounts in this box from all your W-2 forms to calculate your total wages. 4. Include any income from cryptocurrency investments in your total. 5. Deduct any pre-tax contributions, such as retirement plan contributions or health insurance premiums, from your total wages. 6. The resulting amount is your MAGI from W-2 for individuals receiving income from cryptocurrency investments. Remember to consult a tax professional for personalized advice and to ensure compliance with tax laws.
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