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---
title: What are my tax obligations when earning LBC?
category: publisher
order: 10
---
**Important note:** LBRY Inc is providing these guidelines as a service to creators who may earn enough LBC to have to report it for tax purposes. These are just general guidelines for users in the USA as understood by LBRY. Creators are encouraged to seek tax guidance from a licensed CPA. In the US, IRS reporting is only necessary if you earned more than $600 USD/yr, so it would not apply to majority of regular users or smaller creators.
## Income and gains taxes
**Two different US taxes can apply on earned cryptocurrency: income tax and capital gains tax.**
1. **Income tax** - the total value of LBC earned in a year must be declared as income on the annual US tax return.
**Example**: You receive 10,000 LBC when the price is $0.10. You must declare $1,000 USD in income.
2. **Capital gains tax** - the difference between the price LBC was received at vs the price it was sold at.
**Example**: You receive 10,000 LBC when the price is $0.10. You sell it immediately for USD. You owe no capital gains in this scenario.
**Example**: You receive 10,000 LBC when the price is $0.10. You hold it for 3 months and then sell it when it is $0.15. You must declare a $5,000 USD capital gain, which is then taxed at your short term capital gain rate.
## Official guidance
The IRS has established detailed guidance for these transactions [which can be found here](https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions).
## Sample tracking spreadsheet
We are providing [a sample Google Sheet](https://docs.google.com/spreadsheets/d/1GzH322hB-eyC3NYCgAhUAVQwjodIlTgRU8omVxIHH0Q/edit#gid=1608975425) that can be copied and used for your records may help you keep track of this.
## Reporting and app data
We'll be working on adding more of this information into the Creator dashboard for easier consumption as well as adding better export options for historical earnings.