IRS Reminds Taxpayers to Report All Income, Including Foreign Accounts and Assets

The Internal Revenue Service (IRS) issued a reminder  that taxpayers must report all earned income on their tax returns. This includes income from sources that may not seem traditional, like the gig economy, digital assets, and even foreign income.

For digital assets, even taxpayers who didn’t engage in any transactions in 2023 will need to answer a “Yes” or “No” question on their tax return. If you did trade, sell, or otherwise dispose of digital assets like cryptocurrency, you’ll need to report all income related to those transactions.

Income from the gig economy, even from part-time or side jobs, must be reported on your tax return. This applies regardless of how you were paid (cash, digital assets, etc.) or if you didn’t receive a 1099 form.

Working in the service industry? Don’t forget to report your tips! This includes both cash and non-cash tips you receive from customers. Employees must report all their tips to their employer, who will include them on the W-2 form. If there are tips you haven’t reported to your employer, you’ll need to report them on a separate form with your tax return.

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As a U.S. citizen or resident alien, you are taxed on your worldwide income, regardless of where you live. This includes both earned income (wages) and unearned income (interest, dividends) from foreign sources. Even if you qualify for tax benefits that can reduce or eliminate your U.S. tax liability, you still need to file a tax return to claim those benefits.

There are also filing requirements for U.S. taxpayers who have foreign accounts and assets. You may need to report them on various forms, depending on the specifics of your situation. The IRS encourages you to visit their website for more information on these requirements.

The IRS offers a variety of resources to help taxpayers understand and meet their filing obligations. Whether you’re curious about digital assets, navigating the gig economy, or unsure about how to report foreign income, the IRS website has information to help you file an accurate tax return.