Tax Statement for partecipants



sorry for the question but I have a doubt. is rewarding its members for the contribution they give in building the meta model.

The contribution, at the moment, is paid via BTC and NMR. NMR, up until the initial release, has no value.

My question is: how do partecipants outside US should behave towards tax statements? For some of the participants the income from is quite relevant and, after the release of NMR, it could be even more high.




You should probably consult a tax adviser who knows your country specific laws.


Yup what Geoffrey said. Also, there is a world of information on the web about foreign earned income. I think, but don’t know for certain (because this is a competition) that you’re basically looking at “prize money”, In some circumstances it’s taxed only in the country where it was won.


I’ve been thinking about this more, because we are providing a service to the company in the way of modeling, we might be able to treat this as income. It’s a little different then Kaggle where it’s a straight up competition. In this setup if no one participates, the firm couldn’t operate. Not sure, we may be pushing into new ground with this so caution is required, but it can’t hurt to look at that avenue as I think the tax liability is more reasonable. I’m going to push my “performance based compensation” right into my LLC. The IRS is pretty good about letting you know if you got it wrong…


It’s quite an unexplored area.

For example if you take a Kaggle tournament they state: “If a potential winning Participant or Team member is a U.S. citizen, potential winner must also sign and return an IRS W-9 form, or if a foreign resident, an IRS W-8BEN form, within the stated time in order to claim the prize.”. This means that if you are a US-resident Kaggle pays the tax for you. If you are not I suppose you should declare in some way the income to your local tax office.

In my point of view, if required, should be able at the end of the year to release an official statement to each participant exposing the total amount of money they pay to them. And here comes another question: the bitcoin part of the winning has a dollar counter value, so they should declare the “value date” of each prize (each week the BTC has a different value); how this should relate to NMR? For most of the people the NMR payout has been done when NMR was at 0 value (so I guess it is something like 0 income), but now NMR it is gaining a value which accrue to an income


Interesting topic.
How about those who were awarded NMR after it gained value? We still face the problem of variable NMR price. If you receive NMR when it was 100$, and sell when it is 1$, it is not fair for your statement to declare your income at NMR = 100$.

In canada, awards are not taxed. Aren’t the data scientists being awarded for their work? It is still a competition.


I think NMR would be treated like shares given to an employee, or appreciation on stocks that you would buy and hold. You’re tax liability isn’t due until you’ve sold them and realized the gain. I don’t know for certain. But, because my payout is directly tied to the performance of the model (this isn’t a game of chance and I’m using real resources, time and skill to generate those models) I’m going to treat it as consulting income when I actually sell my bitcoins and NMR and realize the actual value.

I’ve always had a pretty good relationship with the IRS, keep everything above board. They always let me know if I’ve screwed it up. Sometimes they make corrections and I get some back, sometimes they make corrections and I send a little more in. I’ll make sure I keep the difference between the tax rate (income vs winnings) around just in case. If you make a genuine and best effort to get it right (not hide it) they are pretty easy to work with.


Having thought about this more (and sitting around watching Wimbledon) I’m guessing that’s flawed thinking. It’s not like Tennis players aren’t “skilled”. So it’s probably still considered prize money and is taxed around 30% (here in the US) when the NMR is sold and actual value is realized.


Does anyone have any advice on US Taxes for this? I haven’t seen any solid advice from any tax sites except that coins/tokens do count as income and you have to claim them. Any rewards, consulting where there is a transfer of value, you’ve got to claim it. Seeing as how I have successfully been able to move from NMR to USD…its seems like something to claim for the IRS.

Here’s my current strategy to get the value of the NMR.

For the Numerai that I won before it hit exchanges (7/23) according to , I’m counting the cost as NMR * 35.05 which is the opening date price. Then, every time I’ve received NMR, I’m using the historical closing cost. So I.e. if I won 10 NMR on 8/30 then I’m calculating 10*$35.84. I’m going to add that up with USD winnings, and that is the total income.

I found you can see a list of transactions by copying and pasting your Deposit Address (looks something like 0x0000000000000000000000000000000000002aa1 ) then looking it up in . The deposit address is in Balances–>Deposit Address FYI.

Anyone else taking this approach? Obviously the best way to reach out to a tax consultant…this is not legal advice, I’m not a CPA, just an ML fan!


As long as a potential winning participant is US citizen, they should fill out the IRS W-9 form. I hadn’t been participating yet, so I don’t know if provides them prefilled. If one’s country of residence is outside the United States, so one should write down a W-8BEN form instead. Both w9 and w8ben can be found here or on the IRS official website, where you also can find an assistance on how to fill them and send