Only 11 Colorado Residents Paid Taxes With Cryptocurrency This Year

Cryptocurrency has been gaining in popularity in recent years, as more people recognize its potential as a viable alternative to traditional currencies. However, despite the growing interest in cryptocurrency, it appears that only a small number of taxpayers in Colorado have chosen to pay their state income taxes with digital assets, even though last September, Governor Jared Polis announced that Colorado residents could pay state income tax with cryptocurrency.

According to a recent report, only 11 Colorado residents used cryptocurrency to pay their state income taxes this year. This represents a tiny fraction of the overall number of taxpayers in the state, which is estimated to be around 5 million.

This low number of cryptocurrency tax payments can be attributed to several factors, including the relatively low level of adoption of cryptocurrency in general, as well as the complexity of the tax filing process for digital assets. In addition, some taxpayers may be hesitant to use cryptocurrency to pay their taxes due to concerns about the volatility and security risks associated with these assets.

Despite the low number of cryptocurrency tax payments in Colorado, some experts believe that this trend could change in the future. As cryptocurrency becomes more mainstream and easier to use, more taxpayers may be inclined to use digital assets to pay their taxes. In addition, some states are actively working to make it easier for taxpayers to pay with cryptocurrency by partnering with payment processors that accept these assets.

However, it is important to note that taxpayers who choose to pay their taxes with cryptocurrency must be careful to accurately report these payments on their tax returns. Failure to properly report cryptocurrency payments could result in penalties and fines from the IRS.

Overall, the fact that only 11 Colorado residents paid their state income taxes with cryptocurrency this year highlights the slow adoption of digital assets as a means of payment. However, as the technology continues to evolve and become more widely accepted, it is possible that we may see more taxpayers choosing to use cryptocurrency to pay their taxes in the future.