Minors have to pay tax on their cryptos

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

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

The tax office never sleeps

First step: “Parents have to actively approach their children and ask them what they do on the Internet,” explains the tax consultant. “You have a legal obligation to monitor.” Second step: “Together find a tax advisor who specializes in cryptocurrencies.” He needs the documents for the transactions.