Do I Need to Report Cryptocurrency Rewards On My Taxes?

While the value of cryptocurrency could be volatile, smart investing can yield substantial profits for some. Nevertheless, it is vital to remember that reporting earnings to the IRS is mandatory. One example of cryptocurrency income is when a taxpayer receives additional units of cryptocurrency as rewards when validation occurs. This event is commonly known as “Crypto Staking” and the IRS states clearly that any validation rewards should be reported as income when received. Failure to report this income from could result in compliance issues. To read more about this, go to https://www.irs.gov/pub/irs-drop/rr-23-14.pdf. At XQ CPA, we specialize in tax planning and can assist you in ensuring accurate filing while maximizing your savings. If you need professional help, do not hesitate to reach out to us at 832-295-3353 or schedule an appointment through our website: www.xqcpahouston.com.