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In recent tax years the IRS has become increasingly invested in ensuring that taxpayers are paying the appropriate taxes on their digital assets. The official IRS definition of digital assets includes:
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On every tax return filed in tax year 2022 the taxpayer must answer the following question yes or no.
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Short Term Transactions
Short term capital gains (assets held less then one year) are taxed up to 37% as ordinary income.
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*Numbers published in this chart are for tax year 2023.
Filing Status | 10% Tax rate | 12% Tax Rate | 22% Tax Rate | 24% Tax Rate | 32% Tax Rate | 35% Tax Rate | 37% Tax Rate |
|---|---|---|---|---|---|---|---|
Single | $0 to $11,000 | $11,001 to $44,725 | $44,726 to $95,375 | $95,376 to $182,100 | $182,101 to $231,250 | $231,256 to $578,125 | $578,125 and up |
HOH | $0 to 15,700 | $15,701 to $59,850 | $59,851 to $95,350 | $95,351 to $182,100 | $182,101 to $231,250 | $231,251 to $578,100 | $578,100 and up |
MFJ/QW | $0 to $22,000 | $22,001 to $89,450 | $89,451 to $190,750 | $190,751 to $364,200 | $364,201 to $462,500 | $462,501 to $693,750 | $693,751 and up |
MFS | $0 to $11,000 | $11,001 to $44,725 | $44,726 to $95,375 | $95,376 to $182,100 | $182,101 to $231,250 | $231,256 to $578,125 | $578,125 and up |
Long Term Transactions
Long term gains (assets held greater than one year) are taxed at a lower rate of either 0-20%.
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Filing Status | 0% | 15% Tax Rate | 20% Tax Rate |
|---|---|---|---|
Single | $0 to $44,625 | $44,626 to $492,300 | $492,301 and up |
HOH | $0 to $59,750 | $59,751 to $523,050 | $523,051 and up |
MFJ/QW | $0 to $89,250 | $89,251 to $553,850 | $553,851 and up |
MFS | $0 to $44,625 | $44,626 to $492,300 | $492,301 and up |