Bloomberg Tax
Aug. 17, 2022, 8:45 AM

Expansion of Crypto Question on Income Tax Form Adds Clarity

Erin Slowey
Erin Slowey

The IRS expanded the crypto question on the draft Form 1040, a welcome change in the tax community and a cue to taxpayers to start tracking their digital assets more closely, tax pros said.

The update added wording to the form being prepared for the next filing season to further specify that taxpayers should report if they received digital assets as a “reward, award or compensation.”

“That’s really the heart of the question: Did you get something that you should report income on?” said Tim Savage, a partner at Weaver, a Texas accounting and advisory firm.

The ...