What are the tax rates for cryptocurrency earnings in the US?

3 answers

• GiorgiaMay 26, 2021 · 4 years ago
  The tax rates for cryptocurrency earnings in the US depend on various factors, such as the type of cryptocurrency, the holding period, and the individual's tax bracket. Generally, cryptocurrency earnings are treated as capital gains and are subject to either short-term or long-term capital gains tax rates. Short-term capital gains tax rates are the same as ordinary income tax rates, ranging from 10% to 37%. Long-term capital gains tax rates are typically lower, ranging from 0% to 20%. It's important to consult with a tax professional or refer to the IRS guidelines for specific details on how to report and calculate taxes on cryptocurrency earnings.
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• Luis Melero AlvarezApr 07, 2024 · a year ago
  When it comes to tax rates for cryptocurrency earnings in the US, it's essential to understand that the IRS considers cryptocurrency as property for tax purposes. This means that any gains or losses from cryptocurrency transactions are subject to capital gains tax. The tax rate you'll pay depends on your income level and how long you held the cryptocurrency. If you held the cryptocurrency for less than a year before selling, you'll pay short-term capital gains tax, which is the same as your regular income tax rate. If you held the cryptocurrency for more than a year, you'll pay long-term capital gains tax, which is typically lower. It's crucial to keep accurate records of your cryptocurrency transactions and consult with a tax professional to ensure compliance with tax laws.
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• Julio MichelMar 31, 2022 · 3 years ago
  BYDFi does not provide tax advice, but I can give you some general information on the tax rates for cryptocurrency earnings in the US. Cryptocurrency earnings are subject to capital gains tax, which means that the tax rate depends on your income level and how long you held the cryptocurrency. If you held the cryptocurrency for less than a year, you'll pay short-term capital gains tax, which is the same as your regular income tax rate. If you held the cryptocurrency for more than a year, you'll pay long-term capital gains tax, which is typically lower. It's important to consult with a tax professional or refer to the IRS guidelines for accurate and up-to-date information on tax rates for cryptocurrency earnings.
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