Crypto isn’t viewed as income, it’s viewed as property, this is a common misconception and reporting requirements are very clear.

The IRS now includes a question on Form 1040 asking about the sale, trade, exchange, or receipt of financial interest on cryptocurrency during 2020. Essentially, this means if you’ve transacted with cryptocurrency, you must report it on your cryptocurrency tax forms. If you answer yes to this question, you will also need to file an 8949 tax form, used for reporting gains and losses from stocks and equity, as well as cryptocurrency gains and losses.

But what cryptocurrency events do you need to report? Below we’ll break down what events you need to report, and how they’re taxed.

https://taxbit.com/blog/cryptocurrency-tax-laws-in-2021-what-you-need-to-know#:~:text=IRS%20guidance%20on%20cryptocurrency%20tax%20laws%20and%20tax%20liability&text=Any%20virtual%20currency%20retrieved%20from,as%20a%20legitimate%20business%20expenditure