Should I include my cryptocurrency holdings when calculating my MAGI before or after standard deduction?

7 answers

• Nov 26, 2021 · 3 years ago
  Including cryptocurrency holdings when calculating your MAGI depends on how you treat your cryptocurrency for tax purposes. If you treat it as an investment and report capital gains or losses, then it should be included in your MAGI. However, if you treat it as personal property and do not report any gains or losses, then it may not need to be included. It is best to consult with a tax professional for personalized advice.
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• Nov 26, 2021 · 3 years ago
  Yes, you should include your cryptocurrency holdings when calculating your MAGI. The IRS considers cryptocurrency as property, and any gains or losses from its sale or exchange are subject to tax. Therefore, it is important to include these holdings in your MAGI calculation to ensure accurate reporting and compliance with tax regulations.
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• Nov 26, 2021 · 3 years ago
  As an expert at BYDFi, I would recommend including your cryptocurrency holdings when calculating your MAGI. BYDFi is a leading cryptocurrency exchange that values transparency and compliance. Including your cryptocurrency holdings in your MAGI calculation ensures that you are accurately reporting your income and complying with tax regulations. If you have any further questions, feel free to reach out to our team.
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• Nov 26, 2021 · 3 years ago
  Including your cryptocurrency holdings when calculating your MAGI is a personal decision. While it is important to comply with tax regulations, the IRS has not provided clear guidelines on whether cryptocurrency should be included in MAGI calculations. It is recommended to consult with a tax professional to determine the best approach for your specific situation.
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• Nov 26, 2021 · 3 years ago
  Including cryptocurrency holdings when calculating your MAGI can have an impact on your eligibility for certain tax deductions and credits. It is advisable to consult with a tax professional who is knowledgeable about cryptocurrency taxation to ensure that you are accurately calculating your MAGI and maximizing your tax benefits.
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• Nov 26, 2021 · 3 years ago
  Cryptocurrency holdings should be included when calculating your MAGI if you have realized gains or losses from buying, selling, or exchanging cryptocurrencies. However, if you have not realized any gains or losses and treat your cryptocurrency as personal property, it may not need to be included. It is recommended to consult with a tax professional for personalized advice.
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• Nov 26, 2021 · 3 years ago
  Including cryptocurrency holdings in your MAGI calculation is essential for accurate tax reporting. Whether you take the standard deduction or itemize deductions, reporting your cryptocurrency holdings ensures compliance with tax regulations. It is always a good idea to consult with a tax professional to ensure you are following the correct procedures.
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