How does FICA SS relate to the world of digital currencies?

3 answers

• Nov 28, 2021 · 3 years ago
  FICA SS, also known as the Federal Insurance Contributions Act and the Social Security tax, is a payroll tax that is levied on employees and employers in the United States. In the world of digital currencies, FICA SS may not directly apply to transactions involving cryptocurrencies like Bitcoin or Ethereum. However, when converting digital currencies into fiat currencies or when using digital currencies for purchases, individuals may be subject to FICA SS taxes on the resulting income or capital gains. It is important for digital currency users to be aware of their tax obligations and consult with a tax professional to ensure compliance with FICA SS and other applicable tax laws.
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• Nov 28, 2021 · 3 years ago
  FICA SS and digital currencies may seem unrelated at first glance, but there are potential implications for digital currency users. While FICA SS primarily applies to traditional employment income, the IRS has provided guidance stating that digital currencies should be treated as property for tax purposes. This means that if you receive digital currencies as payment for goods or services, you may be required to report the fair market value of the digital currency as income and potentially pay FICA SS taxes on that amount. It's important to keep accurate records of your digital currency transactions and consult with a tax professional to understand your specific tax obligations.
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• Nov 28, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, recognizes the importance of tax compliance for its users. While FICA SS may not directly relate to digital currencies, BYDFi encourages its users to understand and fulfill their tax obligations. When it comes to digital currency transactions, it's crucial to keep track of your income and capital gains, as these may be subject to FICA SS taxes. BYDFi provides resources and educational materials to help users navigate the tax implications of digital currency transactions and encourages them to consult with tax professionals for personalized advice.
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