Does Bitpay report to the IRS?

[funnyb25]

[B]
But how will they know the difference between traders and those that just use it to move from book to bank?

all 5 options are bundled into a "yes" or a "no" So it is very complicated on how we would only have to prove if we traded. I may be missing something here, I am clueless about it all..

[raiders72001]

[B]
But how will they know the difference between traders and those that just use it to move from book to bank?

I would only say, "no" based on advice from an accountant so that there was some type of proof that you aren't willingly trying to avoid paying taxes.

[Arky]

You don't have to prove anything by answering yes unless you trade.

Nope. When I checked "yes" in Turbo Tax last year, I was taken to the Schedule (A?) (D?)... the form where you report capital gains/losses. This also took me out of free Turbo Tax and they wanted me to upgrade to pay Turbo Tax.

[raiders72001]

Nope. When I checked "yes" in Turbo Tax last year, I was taken to the Schedule (A?) (D?)... the form where you report capital gains/losses. This also took me out of free Turbo Tax and they wanted me to upgrade to pay Turbo Tax.

The 2020 is different than the 2019. I could be wrong since I'll file cryptos but I thought those that weren't trading didn't have to do anything for 2020.

[funnyb25]

Nope. When I checked "yes" in Turbo Tax last year, I was taken to the Schedule (A?) (D?)... the form where you report capital gains/losses. This also took me out of free Turbo Tax and they wanted me to upgrade to pay Turbo Tax.

I have my 2019 1040 right in front of me and I don't see a single question in regards to virtual currency on it unless I missed it. Just read it over a couple of times.

[Arky]

I have my 2019 1040 right in front of me and I don't see a single question in regards to virtual currency on it unless I missed it. Just read it over a couple of times.

It's on Schedule 1.

https://thebitcoinnews.com/irs-now-requires-tax-filers-to-disclose-crypto-activities/

Schedule 1 didn't even make it to my final saved copy as nothing there changed the outcome.

[Arky]

The 2020 is different than the 2019. I could be wrong since I'll file cryptos but I thought those that weren't trading didn't have to do anything for 2020.

Well, that leads back to the question. Perjure yourself or say "yes" and show your losses/no gains?

I was wrong about the change in the question. It was the same last year as this year.

[funnyb25]

It's on Schedule 1.

https://thebitcoinnews.com/irs-now-requires-tax-filers-to-disclose-crypto-activities/

Schedule 1 didn't even make it to my final saved copy as nothing there changed the outcome.

I am so lost. I am staring at all my tax forms prepared by my guy and there is no Schedule 1 form anywhere in the packet.

[Arky]

I am so lost. I am staring at all my tax forms prepared by my guy and there is no Schedule 1 form anywhere in the packet.

Eheh, well you got a tax preparer, that helps to shield ya from bastids. Did you discuss crypto with him last year? Sounds like your schedule 1 was insignificant, too, thus it was not needed.

[funnyb25]

Eheh, well you got a tax preparer, that helps to shield ya from bastids. Did you discuss crypto with him last year? Sounds like your schedule 1 was insignificant, too, thus it was not needed.

I dont think they know much about crypto. I didnt think I had a reason to even mention crypto as I never traded or invested in it. Simply held it for minutes while it hit the wallet from the book before I sent it to exchange then bank. I mentioned everything I do with betting offshore and how I just use it to move the funds. He doesn't think there is any tax concerns with anything I am doing, but like I said, these are tax professionals for big corporations and high net worth folks that most likely have never touched crypto. He is a good friend of my boss so he takes care of filing mine. But like I said, the packet that I had to sign everywhere never included a Schedule 1 Form.

[Arky]

I dont think they know much about crypto. I didnt think I had a reason to even mention crypto as I never traded or invested in it. Simply held it for minutes while it hit the wallet from the book before I sent it to exchange then bank. I mentioned everything I do with betting offshore and how I just use it to move the funds. He doesn't think there is any tax concerns with anything I am doing, but like I said, these are tax professionals for big corporations and high net worth folks that most likely have never touched crypto. He is a good friend of my boss so he takes care of filing mine. But like I said, the packet that I had to sign everywhere never included a Schedule 1 Form.

OK, yeah, there are a lot of tax people that don't know jack about how to deal with crypto. The IRS didn't make it easy on them either.

Last year, me and a few others I met online concluded (rightly or wrongly), if there were no gains, we were going to say "no". We didn't owe anything so why say "yes"? Why waste each other's time (my time, the IRS's time)? And like I said, the one CPA I consulted - who said he wasn't versed in crypto - said not to say "yes" because it was a major hassle just to prove no gains....

Talk to your guy this year and see what he recommends....

[raiders72001]

It's on Schedule 1.

https://thebitcoinnews.com/irs-now-requires-tax-filers-to-disclose-crypto-activities/

Schedule 1 didn't even make it to my final saved copy as nothing there changed the outcome.

In 2020 there's no need for him to fill out Schedule 1 for bitcoin since there's no bitcoin income.

[funnyb25]

OK, yeah, there are a lot of tax people that don't know jack about how to deal with crypto. The IRS didn't make it easy on them either.

Last year, me and a few others I met online concluded (rightly or wrongly), if there were no gains, we were going to say "no". We didn't owe anything so why say "yes"? Why waste each other's time (my time, the IRS's time)? And like I said, the one CPA I consulted - who said he wasn't versed in crypto - said not to say "yes" because it was a major hassle just to prove no gains....

Talk to your guy this year and see what he recommends....

I understand everything you are saying, my point is, I didn't even have that Schedule 1 form in my packet. So I couldn't check either yes or no.

[Arky]

In 2020 there's no need for him to fill out Schedule 1 for bitcoin since there's no bitcoin income.

Yes, but if you use Turbo Tax, you will get asked that question and if you say "yes", you will be taken to Schedule 1.... at least that's the way it worked in 2019.

[Arky]

I understand everything you are saying, my point is, I didn't even have that Schedule 1 form in my packet. So I couldn't check either yes or no.

Well, he probably should have asked you the question being your tax preparer. Perhaps you discussed how you gamble with him, he saw that nothing was owed and skipped it.... just guessing, here. Therefore, there was no need to tack on a Schedule 1.

Make sure you bring it up with him this year. I would be curious how he approaches it when someone has losses or no gains....

[raiders72001]

https://tokentax.co/guides/cryptocurrency-tax-reporting/#how-to-submit-form-8949-via-the-form-1040-schedule-d

[raiders72001]

[B]
But how will they know the difference between traders and those that just use it to move from book to bank?

You're overthinking it. Just say, "yes" and don't do anything else since you just moved money.

[funnyb25]

Well, he probably should have asked you the question being your tax preparer. Perhaps you discussed how you gamble with him, he saw that nothing was owed and skipped it.... just guessing, here. Therefore, there was no need to tack on a Schedule 1.

Make sure you bring it up with him this year. I would be curious how he approaches it when someone has losses or no gains....

I didn't mention i gambled last year because i didn't even know that question was on a form. I lost my ass gambling last year too. So do I now need to go back and get a schedule 1 for 2019 and mark yes? I didnt get any forms from Gemini or anything.

[funnyb25]

You're overthinking it. Just say, "yes" and don't do anything else since you just moved money.

I overthink everything. Big problem of mine. Now I am overthinking about 2019 that I should have told him I gambled and lost my ass so he could send me a schedule 1?

[raiders72001]

I overthink everything. Big problem of mine. Now I am overthinking about 2019 that I should have told him I gambled and lost my ass so he could send me a schedule 1?

You lost gambling so leave it alone. Just mark "yes" and let it go. Many gamble and some estimate 10% of Americans have bitcoin. Unless you are winning and owe taxes, no one cares. It all comes down to $$$$.

[Arky]

https://tokentax.co/guides/cryptocur...040-schedule-d

Good lord, what a headache. My days of doing my own taxes have ended.

[Arky]

You lost gambling so leave it alone. Just mark "yes" and let it go. Many gamble and some estimate 10% of Americans have bitcoin. Unless you are winning and owe taxes, no one cares. It all comes down to $$$$.

The thing I'm saying here is you just can't say "yes" and let it go. Turbo Tax won't let you. Your taken to Schedule 1, Form 8949, Schedule D, etc and expected to fill stuff out....

[Ghenghis Kahn]

They use an ancient computer system, once you hit "yes", you're categorized as someone that owes taxes for cryptos. Make your choices wisely. I'm sure you'll have to pay capital gains later down the line if you decide to sell your cryptos, you don't want to pay taxes for something you didn't make any money on.

I'm not 100% certain but even if you say you lost in gambling, unless you declare yourself a professional gambler, they don't give a fukk, you can't deduct your losses from gambling. All they care about is how much you bought, sold, or traded.

[funnyb25]

They use an ancient computer system, once you hit "yes", you're categorized as someone that owes taxes for cryptos. Make your choices wisely. I'm sure you'll have to pay capital gains later down the line if you decide to sell your cryptos, you don't want to pay taxes for something you didn't make any money on.

I'm not 100% certain but even if you say you lost in gambling, unless you declare yourself a professional gambler, they don't give a fukk, you can't deduct your losses from gambling. All they care about is how much you bought, sold, or traded.

If I am losing money in this entire ordeal, what is there to be taxed on? Thought that is what the IRS is. Revenue thing. Opposite of.losing.

[Ghenghis Kahn]

Ask your tax guy. IRS doesn't care about your gambling losses unless you declare yourself as a professional gambler. But they care about gambling winnings. I'm sure it's same with cryptos. You can't declare crypto losses due to gambling.

[funnyb25]

Ask your tax guy. IRS doesn't care about your gambling losses unless you declare yourself as a professional gambler. But they care about gambling winnings. I'm sure it's same with cryptos. You can't declare crypto losses due to gambling.

Oh, I understand that. I don't have crypto gains though. I dobt trade or hold. I just move it immediately from book to wallet to bank. Doesn't have time to gain any aignicance of value. Sits there for a matter of seconds

[Ghenghis Kahn]

Lol are you saying you always lose? You never had a big score where you cashed out from a book? If so, I guess you don't have to worry about it and just put "no".

If Bill Clinton didn't have sexual relationship with Monica Lewinsky, well I don't hold any crypto.

[funnyb25]

Lol are you saying you always lose? You never had a big score where you cashed out from a book? If so, I guess you don't have to worry about it and just put "no".

If Bill Clinton didn't have sexual relationship with Monica Lewinsky, well I don't hold any crypto.

I am saying I don't hold or trade crypto so there are no gains or losses

[BeatTheJerk]

...

[BeatTheJerk]

....

Raiders did this change ? Is it official any 3,000 or more transaction can be taxed ...

BitPay complies with the requirements of Section 6050W of the Internal Revenue Code. This Section requires payment processors to provide information to the IRS through Form 1099-K reporting.
This requirement only applies in the case of merchants that receive payments from BitPay of more than $20,000 in gross volume and more than 200 separate payments in a single calendar year.

[RocketMan$$$]

I looked at Coinbase and I am under 100 transactions and shows minus 400 dollars. I am going to check no on my taxes. Got in late with Bitcoin for the majority of the year, plus sports was dead for most of the year. This year will be a different story.

[hello1234567]

How about the Crypto COM card? It is a pre-paid card too I believe. Do they report as well?

[Arky]

How about the Crypto COM card? It is a pre-paid card too I believe. Do they report as well?

Not unless you hit the $20K/200 transactions thingy. I drew interest all year and didn't get a 1099 from them.

[JoeCool20]

The more I think about it, the more fuked up that question is. If you win $10 BTC in a SBR Contest, or bought BTC from the SBR store, you need to mark "yes" on that box or else, you are technically lying to the Feds. It is an amazingly retardly put question.

This is exactly what I meant! ^^^ And what I was asking about! I won over $300 here on SBR which was all paid

in BTC. So no matter how fast I cashed it through to the bitpay c-card, it was ALL profit.


So I need to check yes because they can see that the original btc payouts went to my bit-pay acct. Right?