Bitcoin is now the world’s most popular virtual currency, with over $1.5 billion in total value.
And while there’s still a lot of work to be done in terms of the digital currency’s mainstream acceptance, it’s also a good place to start paying taxes and other fees on your digital assets.
Here’s how you can start paying your taxes with Bitcoin, and what you need to know about paying them with Bitcoin.
The IRS isn’t accepting Bitcoin for tax reasons, though 2.
The most common form of digital currency payment accepted by the IRS is cash.
If you’re not an American citizen or resident, you may be eligible for a “cash equivalent” credit to be used as part of your federal income tax refund.
You may also be eligible to receive the credit by using an alternative form of payment, such as PayPal, Venmo, and credit cards.
You don’t have to pay taxes on Bitcoin as long as you do the right things.
For example, if you pay your taxes using Bitcoin, you should keep the money in a secure place.
This will help prevent unauthorized activity.
If your bank refuses to accept Bitcoin, ask them to make a cash transaction instead, which will ensure the money is secure.
If the bank doesn’t offer Bitcoin as an alternative payment option, then it’s best to accept the currency as a regular form of currency.
For more on paying taxes using cryptocurrency, check out our previous article: 5 Tips to Protect Your Online Wallet from Money Laundering and Cybercrime.
The first step is to convert your Bitcoins into dollars.
You can use an online Bitcoin exchange to do this.
There are also online Bitcoin wallets for many other currencies.
If using a Bitcoin wallet, be sure to choose the best one for your situation.
If all else fails, you can always sell your Bitcoins at a profit.
You’ll need to convert the Bitcoins into US dollars first.
Once you’ve done that, you’ll need a Bitcoin exchange.
These are also available for many currencies, including Euros, British pounds, and Australian dollars.
If a Bitcoin payment has a bad return on investment, you could be subject to tax in the US.
If that’s the case, consider converting the money back to the currency of your choice before proceeding with the conversion.
In other words, make sure you don’t pay taxes in dollars when converting your Bitcoins.
You could potentially be subject for double taxation on the Bitcoin that you paid.