2021 line item for crypto transactions on Internal Revenue Service form 1040
New for tax year 2021 from the Internet Revenue Service:
“ At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?”
EVery taxpayer MUST check either Yes or No.
If, in 2021, you engaged in any transaction involving virtual currency, check the “Yes” box next to the question on virtual currency on page 1 of Form 1040 or 1040-SR. A transaction involving virtual currency includes, but is not limited to:
• The receipt of virtual currency as payment for goods or services provided;
• The receipt or transfer of virtual currency for free (without providing any consideration) that does not qualify as a bona fide gift;
• The receipt of new virtual currency as a result of mining and staking activities.
• The receipt of virtual currency as a result of a hard fork;
• An exchange of virtual currency for property, goods, or services;
• An exchange/trade of virtual currency for another virtual currency;
• A sale of virtual currency; and
• Any other disposition of a financial interest in virtual currency.