10 Tax Law Changes You Should Definitely Know Before Filing a Return in 2020

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2. Form 1040 now includes virtual currency questions

If you’ve started to get involved in bitcoin investments, this year will actually be the first year when you will have to report any earnings and losses from this. As well as halving the number of schedules from six to three, the revised Form 1040 individual income tax return requires taxpayers to maintain records of and report their virtual currency transactions under Schedule 1’s Additional Income and Adjustments To Income (you’ll find the checkbox at the top of Schedule 1).

As we mentioned above, now, the IRS is getting serious about cryptocurrency. So, if you engaged in transactions which involve virtual currency, you must report this type of transactions.

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