Will Storj be sending out 1099-MISC forms for 2022 tax year? I have not receive one yet.
As I understand it, you should have received one if you made over $600. Did you make that much last year from your nodes? If so, and you didn’t receive your 1099, I would suggest making a support request and we can help you out directly.
did you fill in and submit a W-9 form? See requirements for 1099 described here. Please be sure to send the form from the same email address that is associated with your node(s).
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Sorry to chime in like that but… What is the 1099-MISC form?
I feel like it’s a US thing that applies to US SNOs only but…
Just out of curiosity? ^^’
Thanks for the link. I have now sent a support request with my W-9 form attached.
I recommend reading the article I linked in the post above yours which describes in detail who should submit a W-9 or similar form.
Thank you. That was the issue.
I’m struggling to understand why this is required. USA residents generally should file all “farming” income as capital gains each year, even less than $600. This is based on the CRYPTO amount received @ USD valuation at the time of deposit. We do not receive any USD from STORJ.
Where does STORJ disclose / how much USD funds they are witholding from node operators?
What is the rate of funds withheld, and how is that determined on STORJ’s side?
I suppose a 1099 could protect high earners from 20% tax rate with short term capital gains. Other than that I don’t understand any advantage or difference between the two ways to file. Filing captial gains on a Schedule C vs. registering a 1099 with STORJ seems way more simple for those that already file that way.
The article states: “Both U.S. persons and Foreign persons who are storage node operators should scan and submit the appropriate signed form (W-9 for US persons or W-8BEN for foreign contractors) to our accountant’s email address”.
It also reads that US persons will have to file a w9 form “only if their node earnings exceeded $600 for the previous tax year”.
But it doesn’t say the amount that applies for foreigners.
Besides, I never realized I could have to fill in this kind of document. If the $600 threshold applies to foreigners too, my nodes don’t make enough money anyway…
But still, I’m surprized I didn’t know. Better late than never I guess ^^
I didn’t know I could do this either. I’ve never seen this mentioned anywhere.
I think my nodes will make more then 600$ this year. I’m not an US person, i live in the EU. So if i don’t file those documents storj labs will withhold a portion of my earnings ?
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Please refer to the ¨Foreign Contractors¨ section of the knowledge base article I linked before already.
I would like everyone else who has questions to also first read said document before posting here, thank you.
I read the article. If i don’t want any troube with withholds, I have to fill the Form W-8BEN and send it to accounting@storj.io. Presumably from the email address associated with the nodes ? Correct ?
From Nerdwallet…
" If you acquired crypto from mining or as payment for goods or services, that value is taxable immediately, like earned income. You don’t wait to sell, trade or use it before settling up with the IRS."
This is important to note because if you are waiting to file based on what you sell it for, you may catch an audit as you would only have capital gains and no losses. And that would look suspicious.
The reason you don’t sell first is because your losses are combined at filing time and may be less than the standardized deduction (As well as other adjustments) and you would end up owing the IRS the taxes on the “losses” between the value when Storj paid you vs the when you sold the tokens. Not just the gains.
I generally file the 1099 and list my gains/losses at tax time. I once only filed the 1099 but not the g/l. Because the tax software at the time didn’t mamage crypto. And I got a letter from the IRS as my reward telling me they know I have crypto and to adjust my filing by including my g/l. Big brother is always watching, apparently.
so you file the 1099, and do not record the initial deposit as a gain? IRS is double dipping, once at earning, and a second at calculating gains if we do this incorrectly.
for capital gains only, they get their $, it’s just later than they want it.
For both, it sounds suspicious to an audit, as you have to fudge what your gains at deposit time looks like. (a deposit with 0 value, as you already paid tax on the 1099) Then you get hit again when you sell, as that value was not taxed as zero.
For 1099 only, no gains recording at all, it also seems like it would look suspicious to an audit. (as you mentioned in your experience)
Yes please send the form from the same email address that is associated with your node(s).
I would like to note that Storj Labs employees cannot give you tax advise, please consult with your tax advisor.
We can only inform you about Storj Labs’ own tax compliance obligations, as laid out in the aforementioned article.
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To consult my tax advisor with more specifics, can you disclose if STORJ withholds any funds at all?
Or, are they only reporting 1099 earnings received for the year, with zero withholding?
from EDU, I assume it’s the same with storj:
On Form 1099-MISC the income earned will be recorded but there will not be any deductions for federal, state, or local income taxes, or social security, etc…
Form 1099 recipients are considered non-employees, therefore the org is not required to pay tax or make withholdings on these payments.
The initial payment from Storj is not a gain. A gain (or loss) comes from the sale of an investment and is the difference between initial purchase price and sale price.
As Heunland points out, it is best to consult a tax professional if you have questions regarding your tax obligations.
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Hi,
W-8BEN - can I ask what percentage of SNOs outside of US sent it? If I had to bet, it would be less than 1%