Can I pay my income taxes with Bitcoin?
Unfortunately not. Currently only businesses — from mom & pop to Fortune 100 — are eligible to pay taxes in crypto. 23 specific business taxes are eligible for crypto payment. These business taxes range from 911 Wireless to Withholding Tax.
Here is the full list:
Cigarette / Other Tobacco Products
Commercial Activity (CAT)
Direct Pay Permit
Financial Institution (FIT)
Interest on Lawyers Trust Accounts (IOLTA)
International Fuel Tax Agreement (IFTA)
Motor Vehicle Fuel (MVFT)
Municipal Net Profits
Municipal Tax Electric Light & Telephone
Natural Gas Distribution (Mcf)
Non-Resident Motor Vehicle Sales Tax
Pass-Thru Entity Tax (PTE)
Petroleum Activity (PAT)
Premium Insurance Tax
Public Utilities Tax
Seller’s Use Tax
Streamlined Sales Tax (SST)
What crypto can be used to pay for these taxes?
Ohio business taxes can only be paid in bitcoin currently, but the treasurer plans to add more cryptocurrencies in the future.
What are the steps?
Step 1: Visit OhioCrypto.com and click Get Started.
Step 2: Fill out your Ohio tax account number. If you do not have a Ohio taxpayer number, check out your state tax documentation. If you never got any state tax documentation, you likely need to register, which you can do so at https://registration.ohiocrypto.com/.
Step 3: Enter your business tax amount and the tax period.
Step 4: Choose pay with cryptocurrency and use your crypto wallet to pay the invoice.
Is the State of Ohio holding Bitcoin?
No, because Ohio is using Bitpay. They take no crypto risk as the Bitcoin will be converted to USD. Bitpay fixes the BTC/USD exchange rate for 15 minutes.
What wallets are compatible for paying Ohio taxes with crypto?
You can pay using any of the following wallets:
Edge Wallet (formerly Airbitz)
Bitcoin Core Wallet
Bitcoin Cash (BCH) Wallets
BRD Wallet (Breadwallet)
Why is Ohio doing this?
John Mandel, treasurer of Ohio, is focused on making Ohio a national leader in blockchain technology. He is not the only elected official in the state to embrace this new technology.
Over the summer, Ohio legally recognized data stored and transacted on a blockchain, meaning that electronic signatures secured through blockchain technology have the same legal standing as any other electronic signatures.
In August, the speaker of the Ohio House held a conference to announce the Ohio General Assembly’s interest in understanding blockchain technology and its potential to drive economic and workforce development.
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