a investigation We found that 58% of U.S. crypto investors reported taxable crypto holdings in 2022 — a 4% increase year-on-year — while 31% did not and 11% of the sample size responded. declined.
The survey was conducted by CoinLedger in December 2022 and included 305 Americans who own or invest in cryptocurrencies.
Of those who did not report their cryptocurrency holdings in taxes, 50% said the main reason was that they were not making a profit from the transaction, 18% said they didn’t know they had to report it, 12 % said they didn’t know how to report. Report your cryptocurrency tax returns.
Additionally, 7% of respondents said they didn’t want to pay taxes, and 4% said they didn’t file taxes because the government didn’t know about their cryptocurrency holdings.
lack of clarity
The survey also revealed that many people struggle to distinguish between taxable and non-taxable, likely misreporting their tax returns to the IRS.
Most people — 65% of respondents — knew that cryptocurrency sales were taxable, but few knew that transactions between cryptocurrencies were also taxable under U.S. law. Only 38% of respondents.
Conversely, 25% of respondents believe that wallet-to-wallet transfers are taxable, and 21% believe that holding cryptocurrencies is taxable, neither of which is taxable.
The findings show that there is a lack of education and clarity around cryptography and more awareness is needed across the board.
IRS Expanded Tax Net
February 8, crypto slate report Numerous changes set to expand IRS tax requirements for anyone who receives, earns, transfers or sells cryptocurrencies.
In the United States, cryptocurrency gains from purchases held for less than one year are subject to normal income tax, which varies between 10% and 37%.
