What are the tax implications of receiving 1099k vs 1099misc for cryptocurrency transactions?

1 answers

• Nov 23, 2021 · 3 years ago
  As a third-party cryptocurrency exchange, BYDFi is not responsible for issuing 1099-K or 1099-MISC forms. However, we can provide some general information. If you receive a 1099-K, it means that your cryptocurrency sales have exceeded a certain threshold. This form reports the gross amount of your transactions, and it's up to you to calculate your gains or losses separately. On the other hand, if you receive a 1099-MISC, it means that you're earning cryptocurrency income as a freelancer or independent contractor. This form allows you to deduct expenses related to your cryptocurrency activities, which can help lower your taxable income. Remember, it's always a good idea to consult with a tax professional to ensure you're accurately reporting your cryptocurrency income and complying with tax regulations.
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