Minors have to pay tax on their cryptos

Anyone who makes profits by trading cryptocurrencies or NFTs often has to pay taxes on them to the tax office. This also applies to minors. In the event of tax evasion, the legal guardian is liable in Germany, in most cases: the parents. In an interview with BTC-ECHO, tax advisor Evelyn Klieber, who specializes in crypto, revealed how taxing crypto winnings for minors works.

Her focus has been on the topic for almost a year, she is writing her dissertation on NFTs and giving lectures at crypto trade fairs. She noticed that more and more young people are coming to her who have made huge profits with crypto in the bull run of 2021. And now they don’t know what to do: “Some people don’t dare to talk to their parents – for fear of having the money taken away. Then there is a risk of punishment,” explains Klieber. “And parents are responsible for their children.” For 2021, the tax return submission deadline was August 31, 2023.

The tax office doesn’t sleep

First step: “Parents have to actively approach their children and ask them what they are doing on the Internet,” explains the tax advisor. “You have a legal obligation to monitor.” Second step: “Look for a tax advisor together who specializes in cryptocurrencies.” This person needs the documents for the business.