Good news for gamers: Fortnite’s V-Bucks and Roblox’s Robux are safe from the tax man.
In-game currencies that can’t be turned into real-world money do not count as reportable virtual currency for tax purposes, the Internal Revenue Service clarified this week.
Currencies like V-Bucks and Robux are in-game currencies that gamers can only use to upgrade their gaming experience. For example, Fortnite players spend V-Bucks to buy new outfits for their avatar, “wraps” to change the look of weapons or to purchase new dances in the game. A $25 dollar V-Bucks gift card on Amazon AMZN, -0.70% is worth 2,800 V-Bucks while a gift card for the same amount is worth 2,000 Robux.
The IRS removed the references to Fortnite’s V-Bucks and Robux after Bloomberg asked whether gamers would have to disclose the currencies on their tax returns. For example, players streaming themselves playing a game on Twitch or Facebook FB, +0.49% might mention a “creator code,” which viewers can include when they buy V-bucks. The player with the creator code receives a portion of the transaction, and that money is taxable, said Herbst de Cortina, founder of Buff Your Finances. Income from sponsors and tournament prize winnings are also taxable, he said.Professional gaming has some tax breaks too, Herbst de Cortina noted.
For the first time, tax forms this year include a question asking all taxpayers if “at any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
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