How can I calculate the FICA tax liability for my cryptocurrency income?

1 answers

• Nicholas RohlmanOct 27, 2023 · 2 years ago
  Calculating FICA tax liability for cryptocurrency income is an important aspect of managing your tax obligations. Here's a step-by-step guide: 1. Determine your total cryptocurrency income for the tax year. 2. Identify the portion of your income that is subject to FICA tax. This typically includes income from mining, staking, and trading. 3. Calculate your self-employment tax using Schedule SE. 4. Multiply your self-employment tax by the FICA tax rate (currently 15.3%) to determine your FICA tax liability. 5. Report your FICA tax liability on your tax return. Remember to keep accurate records of your cryptocurrency transactions and consult with a tax professional to ensure compliance with tax laws.
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