What are the main differences between 1099k and 1099 misc for cryptocurrency transactions?

1 answers

• Jan 12, 2022 · 3 years ago
  As an expert in the cryptocurrency industry, I can tell you that the main differences between the 1099k and 1099 misc forms for cryptocurrency transactions are quite straightforward. The 1099k form is specifically designed for reporting payment transactions made by merchants, including cryptocurrency sales. It is typically used by payment settlement entities like PayPal or Coinbase. On the other hand, the 1099 misc form is used to report miscellaneous income, which can include income from cryptocurrency mining, freelance work, or other sources. The reporting thresholds for these forms also differ. The 1099k form is required when a merchant's gross payments exceed $20,000 and the number of transactions exceeds 200 in a calendar year. The 1099 misc form, on the other hand, is required when the total miscellaneous income exceeds $600 in a calendar year. So, if you primarily sell cryptocurrency and your payments are processed through a payment settlement entity, you'll likely receive a 1099k form. If you have other sources of cryptocurrency income, like mining or freelance work, you may receive a 1099 misc form instead.
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