Bitcoin Terms Beginning with Numbers
Schedule D is an attachment to IRS individual tax return form 1040, and helps taxpayers calculate their capital gains and losses taxes. The capital gains and losses taxes affect the individual taxpayer's adjusted gross income amount.
Form 1099-B is a tax form issued by the Internal Revenue Service. Form 1099-B is sent to individual investors by the broker that handled the transaction to report gains and losses from the sale of stocks, bonds, derivatives, or other securities.
Form 1099-K is a tax form sent from transaction providers and processors to the entity whose payments they processed during the preceding tax year. The IRS requires credit card companies and third-party transaction processors to report their users' activities.
Form 1099-MISC is a tax form issued by the IRS. Form 1099-MISC is used by trades or businesses to report payments for rent, royalties, prizes and awards, and substitute payments in lieu of dividends. Prior to tax year 2020, non-employee compensation was reported on form 1099-MISC.
Form 1099-R is a tax form issued by the Internal Revenue Service. Form 1099-R is used to report distributions from pensions, IRA’s, insurance contracts, life insurance contracts, annuities, and other other retirement plans.
There will never be more than 21 million bitcoin in existence. This limit is defined by an algorithm in Bitcoin’s code and is strictly enforced by each node in the Bitcoin network.
A 401(k) plan is a tax-advantaged, employer-sponsored retirement plan in which employees can make contributions through automatic payroll deductions, and employers can match those contributions.
A 51% attack is an attempt to violate Bitcoin's immutability by creating an alternate blockchain. Doing so requires the attacker to control at least 51% of the network mining power, or hash rate.
IRS Form 8949 is a tax form used to report investment short and long-term capital gains and losses. Along with form 8949, investors must file Schedule D and form 1099-B.