On August 18, 2020, the IRS launched the draft Form 1040 for the 2020 tax yr. As you may see within the snippet under, the controversial virtual currency question (At any time throughout 2019, did you obtain, promote, ship, change, or in any other case purchase any monetary curiosity in any digital forex?) the IRS first launched for the 2019 tax yr has been moved from Schedule 1 to the entrance web page of the Kind 1040.
2020 draft Schedule 1 not has the digital forex query.
Though the IRS has not but publicly commented about this proposed change, this transfer exhibits IRS’s ongoing effort in getting extra knowledge on US digital forex & cryptocurrency customers. Presently, not each taxpayer has to file a Schedule 1 with their taxes. Schedule 1 is for taxpayers who should report extra earnings (apart from W-2 earnings) and make sure changes for that earnings. Presently, In case you do not file a Schedule 1, you shouldn’t have to reply the digital forex query. Nonetheless, by including the digital forex query on web page 1 of the tax return, everybody who information a private tax return for the 2020 tax yr should reply the query.
Disclaimer: this submit is informational solely and isn’t meant as tax recommendation. For tax recommendation, please seek the advice of a tax skilled.