Cryptocurrency federal tax

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Everyone must answer the question federral independent contractor and were SR, NR,must report that income on box answering either "Yes" or in any transactions involving digital.

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Crypto Taxes Explained For Beginners - Cryptocurrency Taxes
If you held a particular cryptocurrency for more than one year, you're eligible for tax-preferred, long-term capital gains, and the asset is taxed at 0%, 15%. Capital gains taxes apply to cryptocurrency sales. Cryptocurrency income is taxed based on its fair market value on the date you receive it. The tax rate is % for cryptocurrency held for more than a year and % for cryptocurrency held for less than a year.

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Even a handful of academics have advanced proposals for special tax treatment for cryptocurrency that are inconsistent with existing law. Cryptocurrency is a type of virtual currency that uses cryptography to secure transactions that are digitally recorded on a distributed ledger, such as a blockchain. With that in mind, it's best to consult an accountant familiar with cryptocurrency and current practices to ensure you're reporting taxes correctly.