People of all ages probably buy some Fortnite V-Bucks every now and again, but some recent news from the IRS suggested that they might have to pay taxes on them. Thankfully, it seems that this was all a bit overblown.
CNN reported that there was some language on the IRS website which suggested that taxes would have to be paid on Fortnite V-Bucks in a similar fashion to how Bitcoin is handled. However, it seems that this was a mistake and it was quickly fixed.
As the time of writing for the CNN article, the IRS did not yet have a statement prepared on the matter of how taxing would apply to video game currencies. Fortunately, that has since changed and they've officially commented on the matter to make things nice and clear for everyone, just in time for tax season.
The IRS Statement on Fortnite V-Bucks
Although the initial confusion was worrisome, the IRS was quick to respond with an official statement on the matter which we've reproduced in full below
The IRS recognizes that the language on our page potentially caused concern for some taxpayers. We have changed the language in order to lessen any confusion. Transacting in virtual currencies as part of a game that do not leave the game environment (virtual currencies that are not convertible) would not require a taxpayer to indicate this on their tax return.
And there you have it. No, you are not going to have to pay taxes on your Fortnite V-Bucks — at least if you don't try to profit off of them.
We've also reached out to Epic Games and will add in their response when we receive it.
Update: Since the initial posting of the article we have received a further statement from Epic Games about V-Bucks.
The introduction of the IRS informal guidance with respect to convertible virtual currencies inaccurately described V-Bucks. V-Bucks cannot ‘be digitally traded between users,’ nor can they be ‘exchanged into, U.S. dollars, Euros, and other real or virtual currencies.’
What do you think about concerns overpaying taxes on Fortnite V-Bucks and other digital gaming currency? Are you concerned about how these rulings may affect other games? Let us know in the comments below!
