Podcast
Questions and Answers
True or false: Digital assets include only cryptocurrencies.
True or false: Digital assets include only cryptocurrencies.
False (B)
What can happen if your SSN is incorrect or missing on your tax forms?
What can happen if your SSN is incorrect or missing on your tax forms?
- You may receive a larger tax refund
- You may receive a tax credit
- You may be audited by the IRS (correct)
- You may be exempt from paying taxes
True or false: Digital assets are not subject to federal income tax.
True or false: Digital assets are not subject to federal income tax.
False (B)
How can you apply for an SSN?
How can you apply for an SSN?
True or false: If you own a digital asset, you have a financial interest in it.
True or false: If you own a digital asset, you have a financial interest in it.
How can you obtain Form SS-5?
How can you obtain Form SS-5?
How long does it take to get an SSN once all evidence and information are submitted?
How long does it take to get an SSN once all evidence and information are submitted?
True or false: Reporting of certain actions or transactions with digital assets is not required.
True or false: Reporting of certain actions or transactions with digital assets is not required.
True or false: Income from the sale of digital assets should be reported in the same way as other types of income.
True or false: Income from the sale of digital assets should be reported in the same way as other types of income.
What should you do if your name or SSN on your social security card is incorrect?
What should you do if your name or SSN on your social security card is incorrect?
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Study Notes
- Digital assets are digital representations of value recorded on a secure distributed ledger.
- Examples of digital assets include NFTs, cryptocurrencies, and stablecoins.
- Digital assets are treated as such for federal income tax purposes.
- Check "Yes" on Form 1040 or 1040-SR if you received, sold, exchanged, gifted, or disposed of a digital asset.
- You have a financial interest in a digital asset if you own it or have an ownership stake in an account that holds it.
- Certain actions or transactions with digital assets don't require checking "Yes."
- If you disposed of a digital asset held as a capital asset, use Form 8949 to calculate capital gain or loss and report it on Schedule D.
- If you received digital assets as compensation for services or sold them in a trade or business, report the income as you would other income of the same type.
- Answer "Yes" or "No" to the digital asset question on Form 1040 or 1040-SR.
- For more information, visit IRS.gov/virtualcurrencyfaqs.
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