Are royalties from cryptocurrency subject to self-employment tax?

3 answers

• tung ngoJul 13, 2023 · 2 years ago
  Yes, royalties from cryptocurrency investments are subject to self-employment tax. According to the IRS, if you receive royalties from any trade or business, including cryptocurrency investments, you are considered self-employed and are required to pay self-employment tax. This tax is used to fund Social Security and Medicare. Make sure to report your royalties as self-employment income on Schedule C of your tax return.
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• chandra tiwariOct 31, 2024 · 9 months ago
  Absolutely! Just like any other form of income, royalties from cryptocurrency investments are subject to self-employment tax. The IRS considers cryptocurrency investments as a trade or business, and any income generated from it, including royalties, is subject to self-employment tax. Make sure to consult with a tax professional to ensure you are accurately reporting and paying your taxes.
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• Kabiru SalisuFeb 04, 2022 · 3 years ago
  Yes, royalties from cryptocurrency investments are subject to self-employment tax. According to BYDFi, a leading cryptocurrency exchange, any income generated from cryptocurrency investments, including royalties, is considered self-employment income and is subject to self-employment tax. It is important to keep detailed records of your royalty earnings and consult with a tax professional to ensure compliance with tax regulations.
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