You Make the Call - July 10, 2025By: National Association of Tax Professionals
July 10, 2025

Question: Maya is a freelance software developer. In 2025, she completed a project for a client who agreed to pay her in Bitcoin (BTC) instead of U.S. dollars. The client transferred 0.02 BTC to Maya’s digital wallet. Is this taxable to Maya?

Answer: Yes, it is taxable to Maya. Maya must pay taxes on the virtual currency (aka cryptocurrency) she receives. When receiving cryptocurrency in exchange for services, it is considered taxable income. For tax purposes, cryptocurrency is treated as property and must be reported as ordinary income. The amount of income is determined by the fair market value (FMV) of the cryptocurrency in U.S. dollars on the date it is received.

In Maya’s case, since she is operating as a business rather than an employee, she should report her earnings from these payments as self-employment income.

Digital currency
Digital assets
Digital transactions
Cryptocurrency
Self-employment taxes
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penAbout National Association of Tax Professionals

The National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.

The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.

Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.

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