How does PayPal handle reporting cryptocurrency earnings on a 1099 form?

1 answers

• manali patelOct 29, 2024 · 9 months ago
  At BYDFi, we understand the importance of accurate reporting when it comes to cryptocurrency earnings. PayPal handles reporting cryptocurrency earnings on a 1099 form by providing users with a 1099-K form if they meet certain criteria. If you receive $20,000 or more in gross payment volume and have more than 200 transactions in a calendar year, you will receive a 1099-K form from PayPal. This form will report your total cryptocurrency earnings for the year. It's important to note that the 1099-K form includes the gross amount of payments received, so any fees or expenses related to your cryptocurrency activities will not be deducted. It's your responsibility to report and deduct any applicable fees or expenses when filing your taxes.
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