Does MAGI include cryptocurrency investments in the standard deduction calculation?

3 answers

• Mills ThraneNov 04, 2020 · 5 years ago
  Yes, cryptocurrency investments are included in the calculation of MAGI for the standard deduction. Any gains or losses from your cryptocurrency investments will be factored into your overall income and can affect your MAGI. It's important to keep track of your cryptocurrency transactions and report them accurately on your tax returns to ensure proper calculation of your MAGI.
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• Resa MeylaniDec 05, 2022 · 3 years ago
  Absolutely! MAGI takes into account all sources of income, including cryptocurrency investments. Whether you made a profit or a loss, it will be considered when calculating your MAGI for the standard deduction. Make sure to consult with a tax professional to accurately report your cryptocurrency transactions and ensure compliance with tax regulations.
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• Dr. Mansi BansalApr 12, 2024 · a year ago
  As an expert at BYDFi, I can confirm that cryptocurrency investments are indeed included in the MAGI calculation for the standard deduction. It's crucial to accurately report your gains or losses from cryptocurrency investments to avoid any potential issues with the IRS. Keep detailed records of your transactions and consult with a tax advisor to ensure proper reporting and compliance with tax laws.
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