What is the difference between 1099k and 1099misc for reporting cryptocurrency earnings?

1 answers

• Nov 23, 2021 · 3 years ago
  When it comes to reporting cryptocurrency earnings, the 1099k and 1099misc forms serve different purposes. The 1099k form is specifically designed for reporting income from payment card and third-party network transactions, which includes cryptocurrency transactions made through exchanges. On the other hand, the 1099misc form is used for reporting miscellaneous income, which may include cryptocurrency earnings from sources other than exchanges, such as mining or freelance work. It's important to accurately report your cryptocurrency earnings using the appropriate form to ensure compliance with tax regulations. If you're unsure which form to use, consider consulting a tax professional for guidance.
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