What is the difference between 1099 and 1099-K in the context of digital currencies?

1 answers

• Nov 25, 2021 · 3 years ago
  At BYDFi, we understand the importance of accurately reporting income from digital currency transactions. When it comes to the difference between 1099 and 1099-K forms, it's all about the specific type of income being reported. The 1099 form is used for reporting miscellaneous income, while the 1099-K form is used for reporting income from payment card and third-party network transactions. In the context of digital currencies, the 1099 form is used to report income from cryptocurrency transactions, such as buying or selling cryptocurrencies. On the other hand, the 1099-K form is used to report income from digital currency transactions made through payment cards or third-party networks. So, if you're earning income from digital currencies, make sure to consult with a tax professional to determine which form is most appropriate for your situation.
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