Is Earning Bitcoin Considered Wages or Tips?

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#1May 25, 2023, 08:29 PM
Is earning bitcoin the same as getting paid wages or tips? Can you still claim unemployment if you make a little bitcoin? Does it vary by where you live? Some places call bitcoin an asset. So, is that wages or tips? My state says to report earnings only in US dollars.
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#2May 25, 2023, 08:47 PM
But are you really unemployed? Where do you make your Bitcoin? If you’re getting bitcoin for work you’ve done, you might not be unemployed at all but self-employed. Better check with a lawyer about this, laws can be tricky. Even if they want USD, maybe you could convert your earnings.
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#3May 27, 2023, 11:39 AM
Yeah, it really depends on the country. But you probably need to report any income, no matter the currency. How do you fill out unemployment forms if you earn in euros or something? I guess you just convert it to dollars like they want.
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wizard_2016Full Member
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#4May 27, 2023, 05:42 PM
In the U.S., unemployment rules are different in each state. So yeah, it’s a mixed bag.
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CalmMinerFull Member
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#5May 27, 2023, 09:52 PM
Interesting topic here.
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AtomicForkFull Member
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#6May 28, 2023, 12:48 AM
I think in some places, crypto earnings might be tax-free, so it could be seen as tips.
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orbit2018Member
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#7May 29, 2023, 01:52 AM
Definitely counts as income. The IRS or your local tax authority wants a report on everything you earn. If you get paid in dollars, then you’d need to declare the dollar value when you got paid. Look up the rules where you live; sometimes small earnings don’t mess with public benefits.
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#8May 29, 2023, 04:03 AM
Yeah, depends on the country again. Some see bitcoin as an asset, others don’t. If the unemployment form only accepts USD, maybe just stick to other earnings and forget the bitcoin part. Don’t complicate things, it could lead to issues later.
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sam_wolfMember
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#9May 29, 2023, 08:34 AM
You pay taxes on the value at the time you received it, right? Tips are taxable too. You’ll need to report how much you made in dollars, not just the BTC price when you convert it. And if it leads to capital gains, that’s a whole other issue.
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#10May 30, 2023, 10:21 AM
If you’re making a lot of bitcoin, maybe don’t apply for unemployment. But if it’s not much, why not? In my country, there aren’t many unemployment programs anyway, and they don’t seem to care about bitcoin earnings. A friend of mine trades a lot and doesn’t pay taxes.
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0xFalconMember
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#11May 30, 2023, 04:27 PM
Earning bitcoin likely means you’re not unemployed. If you live in a place that bans bitcoin, then how does that work? You might be breaking the law. If it’s legal there, better talk to a crypto-savvy lawyer.
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#12May 30, 2023, 10:15 PM
In the U.S., unemployment means you aren’t working but actively looking for a job. If you’re looking for work and not finding it, you’re unemployed. Even if you have some money, that doesn’t change that.
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#13May 31, 2023, 03:03 AM
But really, can things like bitcoin or any other asset count as wages or tips? Or are they just gifts? I think gifts up to $10k aren't taxed, at least in the U.S.
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#14May 31, 2023, 05:29 AM
Bitcoin is treated as an asset and a currency. So it’s subject to both income and capital gains tax if earned as payment. No loopholes, just follow the fair market value rules when reporting crypto earnings.
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