Whether you’re casually trading meme coins or deeply immersed in DeFi, understanding your tax obligations now could help you avoid headaches—or penalties—later.
For much of its existence, the U.S. Internal Revenue Service ignored crypto. That changed in 2019 under the Trump Administration, when the IRS began requiring citizens to report their crypto holdings. A crypto-related question appeared on Schedule 1 of Form 1040 in 2020, asking taxpayers whether they had made any cryptocurrency transactions during the year.
“You may have to report transactions with digital assets such as cryptocurrency and non fungible tokens (NFTs) on your tax return,” the IRS said in a post. “Income from digital assets is taxable.”
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Apr 18 2025
