The IRS formally launched crypto taxes in 2014, during which they recognized virtual currencies as capital assets (just like property, bonds, or stocks). Based on tax laws, capital assets are taxed whenever they are sold at a profit. This means if you were to use cryptocurrency to purchase goods or services and you wind up making a profit, you are going to incur capital gains taxes. Some examples of crypto actions that are taxable include using cryptocurrency to purchase goods and services, selling cryptocurrency for fiat, and trading or swapping one crypto asset for another. Transactions such as interest earned from decentralized finance, crypto earned from staking and liquidity pools, crypto mining income from transaction fees and block rewards, crypto received from airdrops, and cryptocurrency received for work done are usually taxed as regular income tax.

That said, you will be expected to keep a record of all buying, selling, investing, or usage transaction related to cryptocurrencies. Failure to do so may put you at risk of tax liabilities resulting in penalties, interest, or even criminal prosecution. 

Here’s a list of tax-related things that usually takes place following a major disaster:

The IRS gives taxpayers more time to file and pay.

Taxpayers whose address of record is located in an area identified by FEMA for their Individual Assistance program will automatically receive extra time from the IRS to file returns and pay taxes. The IRS’s disaster website page provides new info and links to resources. Information is usually available on the IRS Twitter account as well. Taxpayers can also call the agency’s disaster line at 866-532-5227 with questions.

Taxpayers can qualify for a casualty loss tax deduction.

People whose propeties have been lost or damaged due to a federally declared disaster may qualify to claim a casualty loss deduction. They can claim this on their current or prior-year tax return. This may result in a larger refund.

People can apply for a disaster loan or grant.

The Small Business Administration offers financial help to business owners, homeowners and renters. This help is for those in a federally declared disaster area. To qualify, a taxpayer must have filed all required tax returns. the EIDL grant and loan as well as the Paycheck Protection Program (the PPP) were some ways that the US Congress helped the American people.

Taxpayers might need a tax return transcript.

People requiring a tax transcript to support their disaster claims can obtain free transcripts by using Get Transcript to access their transcripts immediately online or to request mail delivery. They can also call 800-908-9946 to request mail delivery or submit Form 4506-T, Request for Transcript of Tax Return.

People who need a copy of their tax return, should file Form 4506, Request for Copy of Tax Return. The IRS waives the usual fees and expedites requests for copies of tax returns for people who need them to apply for disaster-related benefits or to file amended returns claiming disaster-related losses. If filing Forms 4506-T or 4506, the taxpayer should state on the form the request is disaster related and list the state and type of event. This helps speed up the process.

This problem shows us the importance of filing taxes, even if you think you do not have to. Hundreds of thousands of low-income Americans, and those who never worked do not file taxes because they do not see any use for it, because many of them assume that won’t “get anything back”… Here are a few things a taxpayer could potentially receive if he files his taxes even if not required:

1) A refund of income tax withheld from their pay

Fedral and state taxes are often withheld from your pay regardless of how much you make. If you are under the filing threshold, the amount that was taken out from your paycheck is owed to you. Claim it!

2) The Earned Income Credit

You may received EIC if you don’t have a qualifying child but meet the income requirements for your filing status. Unemployment income does not count as “earned income” by the IRS. Also, nobody can claim you on their taxes.

3) The Additional Child Tax Credit

ACTC is a refundable credit that are eligible for if your Child Tax Credit is greater than the total amount of income taxes you owe, as long as your earned income was at least $2,500

4) The Health Coverage Credit

This tax credit is administered by the IRS for those who are at least 55-yrs-old upto 65. You’ve to be receiving benefits from the Pension Benefit Guaranty Corporation, also known as PBGC.

5) Any refundable credit prior to your minimum tax

6) The American Opportunity Credit

If your modified adjusted gross income is $80,000 or less ($160,000 or less for joint filers) can claim the credit for the qualified expenses of an eligible student.

7) The credit for federal tax on fuels

Some uses of fuels are not taxed, however, and fuel users can get a credit for the taxes by filing Form 4136.

The good news is that as self-employed, you’re also entitled to a series of business-related deductions on your taxes. As the name suggests, “deductions” are amounts that you can deduct from your taxable income because they are oftgen business-related expenses. Aside from your repair costs, any yearly city-stickers or registration cost, you can also have you mileage deducted. However. to be able to do this properly, you must first know how many miles exclusively for your business you’ve added on the odometer. Mileage cannot include driving hours for personal purposes. You may write off $0.545 per mile that you’ve driven as a rideshare contractor.

There are various apps you can use to track your mileage properly. Some popular ones are Stride, Triplog, Everlance and MileIQ.