Earning bitcoin = wages/tips? | Bitcointalksearch.org

usekevin

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Quote from: Geremia on April 29, 2021, 03:50:25 PM

The question really is: "Can earning an asset (cows, gold bouillons, bananas, etc.) be wages/tips?"
or is receiving these assets only considered accepting a gift (which I think in the U.S., gifts can be ≤$10k, tax-free).

Actually the question seems,he need to get paid with of bitcoin.For the work,which he can do in the bitcointalk or other.My answer is yes.He can work in the bounty to get a decent token as a payment.But it takes 2 months to convert to bitcoin.After the convention ,he can hold that bitcoin to get a profit from that bitcoin.No one will gift the bitcoin as a gift to others ,even a dollar.

Theb

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Quote from: Geremia on April 29, 2021, 03:50:25 PM

The question really is: "Can earning an asset (cows, gold bouillons, bananas, etc.) be wages/tips?"
or is receiving these assets only considered accepting a gift (which I think in the U.S., gifts can be ≤$10k, tax-free).

This isn't the case for Bitcoin though yes it is classified as an asset but it has a function of a currency that is why it is both subject to income and capital gains tax if you have earned it as a means of payment. You don't need to be confused about this one as the is no legal loophole through their definitions. If you want more proof here is a snippet regarding how you will treat crypto earnings in your report which mention what I have siad earlier which is taking its fair market value.

Quote from: https://www.irs.gov/pub/irs-pdf/p525.pdf

Virtual currency

If your employer gives you virtual currency (such as Bitcoin) as payment for your services, you must include the FMV of the currency in your income.

Geremia

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The question really is: "Can earning an asset (cows, gold bouillons, bananas, etc.) be wages/tips?"
or is receiving these assets only considered accepting a gift (which I think in the U.S., gifts can be ≤$10k, tax-free).

teosanru

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Quote from: Geremia on April 27, 2021, 12:09:44 PM

Does earning bitcoin count as wages/tips?
Can one earn small amounts of bitcoin and still be qualified for unemployment? Does this depend on the country/state?
Some countries/states consider bitcoin an asset. Is earning an asset wages or tips?
The reason I ask is that my state's unemployment application only accepts US$ for reporting earned wages/tips.

Actually unemployment by definition in US means this:

Quote

Unemployed
Who is counted as unemployed?

People are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work.
Workers expecting to be recalled from layoff are sometimes counted as unemployed, depending on the specific interviewer.[24] They are expected to be counted whether or not they have engaged in a specific job-seeking activity.
In all other cases, the individual must have been engaged in at least one active job search activity in the 4 weeks preceding the interview and be available for work (except for temporary illness) in order to be counted as unemployed.
The number of people collecting unemployment benefits is much lower than the actual number of unemployed people, since some people are not eligible, or do not apply.[25]

This is defined in the US as per Wikipedia.

So I think it's best if you try to see if you fit in this criteria, it doesn't matter you have money or not. If you were actively seeking any job and were available to do the job and still couldn't find one that suits your caliber and skill set you are unemployed. So one criterion is that you should be actively searching for a job.

Talking about bitcoin Income if you are receiving it in your private key wallet that doesn't have a KYC you are good because hardly anyone would follow the traces to find whether you actually received any income or not.

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If you earn bitcoin, you will definitely not be considered unemployed, I don’t know if the state in which you reside accepts bitcoin or bans it, if you live in a region that bans bitcoin then how will the profits you earn from bitcoin be calculated? You will be breaking the law in this case.
If you reside in a state that does not have legislation against Bitcoin, I think you need a legal person who has experience with cryptocurrencies to know what laws apply in this case.

Lorence.xD

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If you earn a lot in bitcoin then you might consider not going for an unemployment assistance but if it is otherwise then you can probably do it since the money that you get from bitcoin is not a lot, you need all the help that you can get you know. In my country, there isn't a lot of unemployment programs and it varies from city to city so having affairs with bitcoin is a pretty good thing, they don't seem to mind it because I have a friend who earn a lot by trading and he isn't paying any taxes.

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Quote from: Geremia on April 27, 2021, 12:09:44 PM

The reason I ask is that my state's unemployment application only accepts US$ for reporting earned wages/tips.

Because you pay taxes on the value you received on that day, assuming it's for service and since tips area also taxable same for them.
You will need to file the sum you received in exchange for your service at that date in $ value, not in the value of the BTC you transformed your coins to fiat. That would be an independent taxable event on top of it if it has lead to capital gains.

Quote from: odolvlobo on April 27, 2021, 11:02:37 PM

In the U.S., unemployment insurance is a state program, and not a federal program, so the rules vary a lot by state.

Hmm, shouldn't he be accepted for unemployment benefits if his tips are below the sum he is qualified for and the value of the unemployment to be adjusted based on that, in all states? I mean, this is a bit weird, you get 10$ in tips, you either declare them and you get disqualified or you don't and risk being charged with unemployment fraud? Kind of fucked up.

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Quote from: Geremia on April 27, 2021, 12:09:44 PM

Does earning bitcoin count as wages/tips?
Can one earn small amounts of bitcoin and still be qualified for unemployment? Does this depend on the country/state?
Some countries/states consider bitcoin an asset. Is earning an asset wages or tips?
The reason I ask is that my state's unemployment application only accepts US$ for reporting earned wages/tips.

Depends on a certain country because there are places in the world whom do recognize bitcoin as an asset and there are place which isnt not or still on the neutral phase.
So if you'd been asked for some unemployment application and only accepting US$ then better to skip out and just stick into those earnings you do had excluding
on earning bitcoin.

Dont bother yourself on because it cant really give out some possible problems in the future.Earning bitcoin can rather be as a side income or whatever you do call on
but its just good for own personal calls.

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Quote from: Geremia on April 27, 2021, 12:09:44 PM

Does earning bitcoin count as wages/tips?
Can one earn small amounts of bitcoin and still be qualified for unemployment? Does this depend on the country/state?
Some countries/states consider bitcoin an asset. Is earning an asset wages or tips?
The reason I ask is that my state's unemployment application only accepts US$ for reporting earned wages/tips.

It does count. The IRS or equivalent in your country wants to know everything you earn and tax you on it. If you only accept returns in dollars I imagine you will have to declare the dollar equivalency of the day you were paid. You will have to look at the laws in your country because in some cases having a small income is compatible with public benefits.

dansus021

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Quote from: Geremia on April 27, 2021, 12:09:44 PM

Does earning bitcoin count as wages/tips?
Can one earn small amounts of bitcoin and still be qualified for unemployment? Does this depend on the country/state?
Some countries/states consider bitcoin an asset. Is earning an asset wages or tips?
The reason I ask is that my state's unemployment application only accepts US$ for reporting earned wages/tips.

interesting question Cheesy

for now i see in some country that currently using tax free for crypto which mean is tips Grin

odolvlobo

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Quote from: Geremia on April 27, 2021, 12:09:44 PM

Does earning bitcoin count as wages/tips?
Can one earn small amounts of bitcoin and still be qualified for unemployment? Does this depend on the country/state?
Some countries/states consider bitcoin an asset. Is earning an asset wages or tips?

In the U.S., unemployment insurance is a state program, and not a federal program, so the rules vary a lot by state.

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Quote from: Geremia on April 27, 2021, 12:09:44 PM

Does earning bitcoin count as wages/tips?
Can one earn small amounts of bitcoin and still be qualified for unemployment? Does this depend on the country/state?
Some countries/states consider bitcoin an asset. Is earning an asset wages or tips?
The reason I ask is that my state's unemployment application only accepts US$ for reporting earned wages/tips.

I suppose it depends on the country, but I believe you must report any income (no matter what currency you earn it in).
And how would you fill your unemployment application if you earn EUR or another fiat currency? I suppose you have to convert that to a dollar equivalent ...

Theb

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Are you actually unemployed though? And are where do you basically earn your Bitcoin at? If you are getting paid in Bitcoin in exchange for the services you have rendered I don't think you qualify as an unemployed individual but rather a self-employed one as you are earning Bitcoin through your services. But with regards to your question I think it is best if you seek advice from a lawyer as we might have different interpretations of the law and he can help you better with your position. Because if I were to guess even if they have stated the value on US$ you can just actually convert your Bitcoin to its current market value in USD so this won't be a problem to you.

Geremia

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Does earning bitcoin count as wages/tips?
Can one earn small amounts of bitcoin and still be qualified for unemployment? Does this depend on the country/state?
Some countries/states consider bitcoin an asset. Is earning an asset wages or tips?
The reason I ask is that my state's unemployment application only accepts US$ for reporting earned wages/tips.

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