They said to me to just send a letter with my income (which for me, is when I powered down my STEEM as I powered up post earnings), for the tax years I have been involved in crypto and also to report capital gains/losses as well. I used Koinly which is an online tax calculator to help work everything out. If they want to chase and get details, I'll use Koinly to generate the tax return form, otherwise, a handwritten letter was all they wanted with brief summary, no details.
It's still so new to them this whole crypto thing, they probably won't care for a couple of hundred over the last 3 years! Tax year of 20/21 might be different as earnings are a little more! I'd speak to your brother in law and get his opinion on it, if still unsure then contact IRS (I guess you're from USA?) - our equivalent in the UK were really helpful actually.
Thanks for the kind words about the tune too! I'm hoping I can work on more music now that my mind is at rest a little more with the tax stuff!
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Yeah, good ole IRS. I have heard that this year there is a question right at the very top of the tax form about crypto. I am not sure how in depth they are going to try to get with people. My hope is that like you said, it is still so new as long as you can produce a couple forms they won't dig into it too much.
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Yeah I think they will find their feet with it but will probably go after those who are reporting more than us (like 5, 6 figures) than what we're looking at. Unless you've been getting millions haha!
To be fair, I did bust out the fountain pen when I wrote the letter to HMRC whilst making my declarations of the past couple of tax years - if that doesn't put me in their good, I don't know what will!
(Apart from paying them my dues of course)!
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If I ever make millions, they are more than welcome to take their cut!
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