With the April 15 tax deadline approaching for Americans, some might be wondering about what they do and do not need to disclose on their Form 1040 as it relates to gaming. The situation just got a little more complicated due to a change by the IRS.
The IRS recently removed wording from its website that said Americans needed to disclose whether or not they received, sold, exchanged, or acquired a financial interest in Fortnite or Roblox virtual currency during the 2019 tax year. Millions of Fortnite and Roblox players would presumably be impacted, as they would need to disclose this as taxable income.
The wording was discovered by Coin Center director Jerry Brito. The IRS removed the language after Bloomberg Tax followed up with the government group, though it has yet to comment officially on the matter.