The IRS is replacing its “virtual currency” term on Form 1040 with “digital assets,” a term that covers more than cryptocurrencies. Digital assets include stablecoins and nonfungible tokens (NFTs).
All taxpayers must answer a question regarding digital assets on their 20222 income tax returns. Anyone who files a Form 1040, 1040-SR or 1040-NR must check one box, answering either yes or no to the question.
The question is: At any time during 2022, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, gift or otherwise dispose of a digital asset (or a financial interest in a digital asset)? Learn more.