Seems like just yesterday we were all scrambling to file our taxes in 2021, then again it barely feels like 2022 and it’s already February. Is this the metaverse?
Tax season is an exciting time for some and a daunting time for many. Documents start piling in – W2, 1099, 1098, 1040, 10 something else. Without a dope tax software or a professional tax consultant, it can be overwhelming to do it all correctly.
Knowing how to file your taxes for you and your family in 2022 is so much easier with the proper software. There are very few reasons nowadays to manually file taxes.
It’s also important to understand how charitable giving, like contributions to your church, might affect your overall taxable income. For many, opting to take the “standard deduction” will be most fitting, but for people with substantial tax breaks (especially those who are extremely charitable), itemizing your tax deductions might be most beneficial.
Due to inflation, the IRS made some important adjustments for this tax season that should be noted.
If you own one of the nearly 80,000 homes that were flipped in the second quarter of 2021, then make sure you think through what capital gains taxes might apply to you.
This year, if you use a software like Turbo Tax to file, then you might notice they ask you whether you invested in cryptocurrencies in 2021. For tax purposes, the IRS considers crypto holding as “property”. What fun. So if you made $11,754,000 selling CryptoPunk #7523 (looking at you @sillytuna), then expect the IRS to take their share (in USD – unfortunately they still are not setup to receive ETH tax payments on-chain in MetaMask).
As world’s collide between metaverse currencies and IRL workplace taxation, the IRS will surely have their work cut out for the foreseeable future to discover how to track all the decentralized money changing that happens between “NFT Degens” on a regular basis.
And if you’re a tax consultant – good luck, and may God have mercy on your soul.