Cryptocurrency Traders Prefer Not To Pay Taxes

Cryptocurrency Traders Prefer Not To Pay Taxes

People hate to pay their taxes. At least that’s what the recent report by Credit Karma Tax suggests. When traders have to file their cryptocurrency earnings, they are reluctant to do so. For the uninitiated, Credit Karma is the fifth largest e-filing service in the USA.

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People hate to pay their taxes. At least that’s what the recent report by Credit Karma Tax suggests. When traders have to file their cryptocurrency earnings, they are reluctant to do so. For the uninitiated, Credit Karma is the fifth largest e-filing service in the USA.

Since the beginning of 2018, 250,000 federal tax returns have been filed but fewer than 100 are related to cryptocurrency gains and losses. These numbers make less than 0.04%. However, the company’s general manager expects that the number will increase in the following months, “Generally, Americans with more complex tax situations file later in the tax season, especially if they expect that they’ll owe money.”

Credit Karma reports quite interesting statistics when it comes to demographic data. More than 54% of all filers are millennials, while citizens over 55 make just 14% of all filers. Reuters suggests that the great interest in cryptocurrencies has contributed to these statistics. Nevertheless, the authorities are probably concerned by the small percentage of crypto-related tax filings. It just goes to show that regulations on crypto assets are hard to execute and the reason is, experienced traders know how to cover their tracks.

Brandon Williams, who is a former banker, currently executes at least two cryptocurrency transactions per day. But unlike the majority of crypto geeks, he uses a proper software that tracks his trades, so he can further tax them.

The Internal Revenue Service deems digital currencies as properties and under that definition, they are taxable. Miners who profit from their rigs should also pay taxes, according to IRS. However, Williams believes that cryptos have to be treated as currencies rather than properties. The Internal Revenue Service is yet to make the final decision.

It is hardly that a survey conducted by Pollfish revealed that two-thirds of American cryptocurrency traders are going to report their income from digital assets.

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