How does MAGI calculation affect your taxes when trading cryptocurrencies?

1 answers

• Nov 23, 2021 · 3 years ago
  When it comes to taxes and trading cryptocurrencies, the MAGI calculation plays a significant role. The MAGI calculation takes into account your adjusted gross income (AGI) and adds back certain deductions and exclusions. This can impact your tax liability and determine your eligibility for various tax benefits and deductions. When you trade cryptocurrencies, any gains or losses are considered taxable events and must be reported on your tax return. These gains or losses can affect your MAGI, potentially affecting your eligibility for certain tax credits or deductions. It's essential to keep detailed records of your cryptocurrency transactions and consult with a tax professional to ensure you're accurately calculating your MAGI and complying with tax regulations.
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