Do You Have to Pay Taxes on Cryptocurrency in the U.S.? IRS Rules Explained
Do You Have to Pay Taxes on Cryptocurrency in the U.S.? IRS Rules Explained Cryptocurrency is exciting, volatile, and — yes — taxable. If you bought, sold, staked, or even received crypto as a gift, you might owe taxes to the IRS. Let’s break down when and how crypto is taxed in the United States. 💸 Is Crypto Considered Income or Property? The IRS classifies cryptocurrency as property , not currency. This means crypto transactions are generally subject to capital gains tax , not income tax — unless you're paid in crypto. 📊 Taxable Events You may owe taxes if you: Sell crypto for fiat (USD, etc.) Exchange one crypto for another Use crypto to buy goods or services Receive crypto as payment for work Earn rewards via staking or mining 📝 These events must be reported on IRS Form 8949 and Schedule D 🧮 How Is It Taxed? Short-term gains (held <1 year): taxed at ordinary income rate (10%–37%) Long-term gains (held >1 year): taxed at ca...