11 June 2022 8:06

Nonresident alien F-1 student in the US received 1099-K for robo-trading cryptocurrencies, which form to fill and send to IRS

Where do I put a 1099-K on my tax return?

If you’re self-employed or an independent contractor, you’ll report your 1099-K income on Schedule C of form 1040. To report your 1099-K income on this form, simply enter your gross 1099-K income on line 1 of Schedule C.

How do I fill out form 8949 for cryptocurrency?

2. Complete IRS Form 8949

  1. A description of the property you sold (a)
  2. The date you originally acquired the property (b)
  3. The date you sold or disposed of the property (c)
  4. Proceeds from the sale (fair market value) (d)
  5. Your cost basis for purchasing the property (e)
  6. Your gain or loss (h)

Can F1 students trade Cryptocurrency?

Can I trade cryptocurrencies as an F1 Visa Holder? Yes. The United States allows all visa holders to buy and sell cryptocurrency without any legal repercussions. While it is true that you cannot start a business or work at a company on your F1 visa, you can trade in the stock market, including cryptocurrency.

What tax form do I use for cryptocurrency?

People might refer to cryptocurrency as a virtual currency, but it’s not a true currency in the eyes of the IRS. According to IRS Notice 2014-21, the IRS considers cryptocurrency to be property, and capital gains and losses need to be reported on Schedule D and Form 8949 if necessary.

How do I report crypto trades on my taxes?

How to report cryptocurrency on your tax return:

  1. Step 1: Gather a list of all your exchanges and transactions (including any 1099 forms exchanges sent you)
  2. Step 2: Calculate your capital gains and losses.
  3. Step 3: Fill out IRS Form 8949 for all events taxable as property.

How do I pay taxes on cryptocurrency?

From a tax perspective, bitcoins and other cryptocurrency are not considered currency or income from capital assets. Instead of paying withholding tax on the profits, it is a private sales transaction. If there are taxable gains on the sale, they are subject to your personal tax rate.

Do I have to report every crypto transaction?

Regardless of how it’s earned, you’ll need to record the value of the crypto in U.S. dollars when it’s received and report that income on your tax return.

Do I have to pay taxes on my cryptocurrency gains?

If you disposed of or used cryptocurrency by cashing it on an exchange or buying goods and services, you will owe taxes if the realized value is greater than the price at which you acquired the crypto. You may have a capital gain that’s taxable at either short-term or long-term rates.

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