Page 22 - Individual Forms & Instructions Guide

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
your tax return even if your SSN does Nonresident Alien Spouse • Disposed of a digital asset in ex-
not authorize employment or if you have If your spouse is a nonresident alien, change or trade for another digital asset;
been issued an SSN that authorizes em- your spouse must have either an SSN or • Sold a digital asset;
ployment and you lose your employ- an ITIN if: • Transferred digital assets for free
ment authorization. An ITIN will not be (without receiving any consideration) as
issued to you once you have been issued • You file a joint return, or a bona fide gift; or
• Your spouse is filing a separate re-
an SSN. If you received your SSN after turn. • Otherwise disposed of any other fi-
previously using an ITIN, stop using nancial interest in a digital asset.
your ITIN. Use your SSN instead. Presidential Election You have a financial interest in a dig-
IRS Individual Taxpayer Campaign Fund ital asset if you are the owner of record
Identification Numbers This fund helps pay for Presidential of a digital asset, or have an ownership
(ITINs) for Aliens election campaigns. The fund reduces stake in an account that holds one or
candidates' dependence on large contri- more digital assets, including the rights
If you are a nonresident or resident alien butions from individuals and groups and and obligations to acquire a financial in-
and you don’t have and aren’t eligible to places candidates on an equal financial terest, or you own a wallet that holds
get an SSN, you must apply for an ITIN. footing in the general election. The fund digital assets.
It takes about 7 weeks to get an ITIN. also helps pay for pediatric medical re- The following actions or transactions
If you already have an ITIN, enter it search. If you want $3 to go to this fund, in 2022, alone, generally don’t require
wherever your SSN is requested on your check the box. If you are filing a joint you to check “Yes”:
tax return. return, your spouse can also have $3 go • Holding a digital asset in a wallet
to the fund. If you check a box, your tax
Some ITINs must be renewed. If you or refund won't change. or account;
haven't used your ITIN on a federal tax • Transferring a digital asset from
return at least once for tax years 2019, Digital Assets one wallet or account you own or con-
2020, or 2021, it expired at the end of Digital assets are any digital representa- trol to another wallet or account that you
2022 and must be renewed if you need tions of value that are recorded on a own or control; or
to file a federal tax return in 2023. You cryptographically secured distributed • Purchasing digital assets using
don't need to renew your ITIN if you ledger or any similar technology. For U.S. or other real currency, including
don't need to file a federal tax return. example, digital assets include non-fun- through the use of electronic platforms
You can find more information at gible tokens (NFTs) and virtual curren- such as PayPal and Venmo.
IRS.gov/ITIN. cies, such as cryptocurrencies and sta- Do not leave the question unan-
ITINs assigned before 2013 blecoins. If a particular asset has the swered. You must answer “Yes” or
TIP have expired and must be re- characteristics of a digital asset, it will “No” by checking the appropriate box.
newed if you need to file a tax be treated as a digital asset for federal For more information, go to IRS.gov/
return in 2023. If you previously submit- income tax purposes. virtualcurrencyfaqs.
ted a renewal application and it was ap-
proved, you do not need to renew again Check the “Yes” box next to the How To Report Digital Asset
unless you haven't used your ITIN on a question on digital assets on page 1 of Transactions
federal tax return at least once for tax Form 1040 or 1040-SR if at any time If, in 2022, you disposed of any digital
years 2019, 2020, or 2021. during 2022, you (a) received (as a re-
ward, award, or payment for property or asset, which you held as a capital asset,
An ITIN is for tax use only. It doesn't services); or (b) sold, exchanged, gifted, through a sale, trade, exchange, pay-
ment, gift, or other transfer, check “Yes”
entitle you to social security benefits or or otherwise disposed of a digital asset and use (a) Form 8949 to calculate your
change your employment or immigra- (or any financial interest in any digital capital gain or loss and report that gain
tion status under U.S. law. asset).
or loss on Schedule D (Form 1040) or
For more information on ITINs, in- For example, check “Yes” if at any (b) Form 709 in the case of gifts.
cluding application, expiration, and re- time during 2022 you: If you received any digital asset as
newal, see Form W-7 and its instruc- • Received digital assets as payment compensation for services or disposed of
tions. for property or services provided; any digital asset that you held for sale to
If you receive an SSN after previous- • Received digital assets as a result customers in a trade or business, you
ly using an ITIN, stop using your ITIN. of a reward or award; must report the income as you would re-
Use your SSN instead. Visit a local IRS • Received new digital assets as a port other income of the same type (for
office or write a letter to the IRS ex- result of mining, staking, and similar ac- example, W-2 wages on Form 1040 or
plaining that you now have an SSN and tivities; 1040-SR, line 1a, or inventory or serv-
want all your tax records combined un- • Received digital assets as a result ices on Schedule C).
der your SSN. Details about what to in- of a hard fork;
clude with the letter and where to mail it • Disposed of digital assets in ex-
are at IRS.gov/ITIN. change for property or services;

-15- Need more information or forms? Visit IRS.gov.