Bitcoin Forum

So let's say you sell 220 dollars monthly to help your family with paying bills, food and basic expenses. I am making around that monthly and I need to help at home. I have no job right now and I can't find one since my studies and I can only aim at really low paying jobs which suck so I would rather keep making money online with trading and websites. I don't make much but enough to not have to work to buy myself some stuff.

Anyway, if I sell 220 dollars worth of bitcoin every month, does this need to get taxed or the amount is so small that I don't need to report it?

lol. 220$ is a very small amount, so you dont have to worry about any government tax unless you live in a third world poor country ofcourse.  btw, i do a lot of trades every month, and i am able to make around 250-300$ each month, but i never thought of getting taxed or whatsoever. just saying. btw, it really depends upon your country's law so you should search about the tax rules of your country. good luck!

I do not know about the rules of taxation in your country bas we have different regulation on taxes.  I think for me there is no need to declare it to have it tax.  And who would know if you are selling a $220 value.  No one knows so its free of charge there is no tax.  Unless you tell it to the government besides you are stil studying so you are exempted to it.

its depend on the country you live in, but i think when you sell $220 dollars in bitcoin with localbitcoin or you sell to your friend then you don't get taxed for your money.

The tax people don't look for small amounts such as that. They are interested in amounts of $2000-3000 or more.
It is usually 15% of income produced that they will tax on so $33 is nothing for the tax man to come knocking on your door about. But $300-450 in taxes are. :-[

In America, your earnings may be subject to tax only after you withdraw the funds as cash or to you bank. Even then, I'm not sure if this is checked by the IRS, and I'm not sure of the exact rule.

Well that only makes sense because they have records that they must submit to the revenue agency.
So that paper trail is there. But with bitcoin there is none just in the ether.  ;)

I dont know the way you trade your coins into fiat, but if you sell to local traders i do believe no one will ever know you had bitcoin, sure its something risked to do buy i believe is the best way to stay out of the radar of taxes or to they connect you to ilegal stuff.

Your government is no need your report I think that is really true because and whether there are a rules in your environment or your country is suing their civilians for reporting their salary?and especially in digital currency until this time I never heard about someone is selling their bitcoin and get a taxes for their amount and you will feel doubt about that.

I doubt it Op. I don't know where are you from and what is legal status of bitcoin in your country, but in majority of countries it is unclear what bitcoin really is.
So any kind of legislation is not available. I wouldn't worry about selling ~$200 BTC per month, it is far below usual limits of tax office searches.

I think even you are in poor country there is no taxed by the government you can get it your whole money as your whole bitcoin..
I think almost all country still no tax.  only your problem there is the fee or rates for converting them or to transfer your bitcoin into fiat.

Nobody here knows.  Aren't there any accountants or lawyers who frequent this forum, or is it all computer geeks and one pharmacist?  If I had to venture a guess, I would say that you have to keep track of everything--you're supposed to pay tax on Ebay, but no one does.  But you're supposed to.  Sometimes there's a threshold you have to meet before you get whacked, but I don't know if there is in this case or what it is.  I know absolutely nothing.  The only thing I know how to do is fill out a 1040EZ every April, right on the 15th.  Fuckers.

The question is which tax jurisdiction you come under.
Some developing countries might have a very low threshold. So $220 on a monthly basis could take you into the taxable bracket.
You might not be prosecuted for not reporting it, but you might still be breaking the law by not reporting it.

Well in my country we don't pay taxes in bitcoin all free if we are going to use our bitcoin wallet to pay those taxes and sometimes we can earn when we are using it sometimes if we buy some goods we have 5% cashback and if we are going to deposit our money into bitcoin we can guarantee 5% also and if we are going to pay our bills online using our bitcoin wallet in every 5 bills we pay we always gave us 5$ cash back.

If 220$ is your income from a legit day job, you'll get a big portion of "income" tax and that 220$ will be shorten into like 180$ in my country. But since you get paid with Bitcoins and there's no tax in withdrawing money out of an ATM, then I think you won't get taxed by it. If the government asks for how much you make in a month, then you could just neglect your Bitcoin earnings. They don't know that you're earning bitcoins anyway. If you tell them, they might get interested in putting a tax from that small amount.

Depends on what your income overall is.

In Canada the minimum taxable income is around $12,000 CAD (So high $9,000s USD). For people who are making less than that throughout the whole year, in one way or another, they don't have to report it and it is not taxed, to my knowledge. I am still not sure if capital gains/losses are separate from income.

If you're selling $220 BTC each month and you make higher than the minimum taxable income in the US, AND assuming there are tax laws in place for Bitcoin in your area/federal laws in place, I would assume it is taxable. I recommend checking the law subforum to see if this question has been asked before. Bitcoin is in a huge legal grey area, and so I haven't spent enough time figuring out what is happening, so take my information with a grain of salt.

If you don't exposed you are earning that amount to authorities than i think for that small amount no one cares. But if you start earning big in future like 1,000$ or more per month you can go to tax office yourselves and ask them about how this earning is considered in your country law and are taxable or not.

Yes thats it.  If you will not let the government to know about the transactions that you made.  And the fact that it was not really big money to be taxed by the government I think they will not pay attention to it.  The key is to just do not let them know.  Many people were doing that and was able to make more money than the $220, so there is nothing wrong with that I guess.

The taxman will try and take as much as they can from any source a person has. No matter what it is.
They have their hands in everything including your mother's cookie jar! >:(

Short answer: Yes

Long answer: Depends where you live, how bitcoin is regulated there, if you really think anyone will ever notice (did you know in Canada you're required to claim bartering for tax purposes?! No one does, but you're supposed to).

In the end it's $220, no one will care but technically (again, depends where you live) you need to pay capital gains if you're buying and selling.

It would depend on what country you live in. If you live in the US, I heard that the IRS is really strict and they do not want its citizens to miss paying their taxes no matter how small they are. If you live in a 3rd world country then it would not matter. Who pays taxes out there anyway? :D

thats true, i think that in the future bitcoin is going to be way ore popular and make me some good money, though i think that it should be taxed in any ways

i believe 220$ does not come under tax , and also you can save by showing the proof by investing on tax saving instruments like insurance , rent ,donation etc.in our country 220$ comes below the tax range , so i hope it may be same for you also.

you are right,  some countries have bigger taxes and some of them smaller, though i dont think that the taxes would be too big

It depends of  your country tax legislation.

Where are you from?

Usually even small amounts have to be reported,but i don`t know about taxation.

it really depends on the country and its laws but most probably you will have some fees, though they shouldnt be too high in my opinion

thats true, in my opinion everything would depend on the country where you live but i dont think that you should get any fees

I see people say that this is a small amount but if the law about taxes mention bitcoin or any other digital currency that should be taxed then I think any amount should be taxed(my opinion maybe I'm wrong, I hope to be wrong) otherwise if they tax $1000 they should tax $200 too.

Even if tax is not applicable for converting bitcoins into fiats, we must at least consider the exchange fees incurred for conversion. The only possible solution for this, having all type of merchants for ever daily needs. If there is no need to convert our bitcoins into fiat, we never need to worry about tax.

Even OP's concern is not this, the most needed thing for all the bitcoiners here must be spreading out bitcoin adoption. Till then, we may need to fear about government regulations /taxes /exchange fees and obviously high fluctuations of bitcoin prices.