Over the last year, many Americans have diversified their investments and made significant income on assets like cryptocurrencies and NFTs. These asset classes are relatively new for a majority of Americans, so the experts at Jackson Hewitt have compiled a list of items filers should know ahead of Tax Day 2022.
I bought some NFTs and crypto in the last year. What should I know about paying taxes on them?
  1. Gains can be taxable
  2. Even if you don't cash out, you still may owe taxes on your transactions.
  3. Gains and losses can be tricky. Netting them can be tricky too.
  4. Using basis amounts to calculate your gains and losses can also be complicated.
  5. Forks, awards, dividends, and other income from owning crypto can be taxable.
Note: the IRS is watching this area closely, and there is a question on the front of the tax return to make sure you meet the criteria.
This tax advice is brought to you by our partner Jackson Hewitt.
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