What is the difference between a W9 and a 1099 in the context of cryptocurrency?

3 answers

• Dec 28, 2021 · 3 years ago
  A W9 form is used to collect the taxpayer identification number (TIN) of an individual or entity, such as a freelancer or contractor, who is being paid by another party. It is typically used to report income received from traditional sources. On the other hand, a 1099 form is used to report income received from non-employee compensation, including cryptocurrency transactions. In the context of cryptocurrency, a W9 form may be required by a cryptocurrency exchange or platform to ensure compliance with tax regulations. A 1099 form is then issued by the exchange or platform to the individual or entity, reporting the income earned from cryptocurrency transactions.
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• Dec 28, 2021 · 3 years ago
  When it comes to cryptocurrency, a W9 form is like the initial step in the process. It is a form that you fill out to provide your taxpayer identification number (TIN) to the cryptocurrency exchange or platform. This form is important for tax purposes as it helps the exchange or platform to report your income accurately. On the other hand, a 1099 form is like the final report card. It is issued by the exchange or platform to you, summarizing the income you earned from cryptocurrency transactions throughout the year. This form is crucial for your own tax reporting and compliance.
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• Dec 28, 2021 · 3 years ago
  BYDFi, as a cryptocurrency exchange, requires users to fill out a W9 form to comply with tax regulations. This form helps us to ensure that our users are accurately reporting their income from cryptocurrency transactions. Once the W9 form is submitted, we issue a 1099 form to the user, reporting their income earned from cryptocurrency activities on our platform. It's important for users to understand the difference between these forms and their role in tax reporting and compliance in the cryptocurrency industry.
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