Question

Double counting interest earned through Celsius Network

Forum|Forum|4 years ago
January 28, 2022
3 replies
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I earned interest in 2021 through holding cryptocurrency on Celsius Network.

I did my cryptocurrency taxes through TokenTax, which included my transaction history from Celsius Network, and imported my documents to TurboTax. But after I added my 1099-MISC I received from Celsius Network, it increased my taxes by about $1,000.

I'm confused that my taxes increased, because I thought my interest gains were already accounted for through importing from TokenTax.

Can anyone provide me some direction?

R

RaifH

TokenTax should have imported your Cryptocurrency Mining & Income Tax Report which should duplicate the information found on your 1099-MISC. Any trading activity should be reported separately.

Since it sounds like the income from your 1099-MISC was for interest earnings and not mining, you want to make sure it is entered correctly on your tax return.

With your return open, go to Federal > Wages & Income
Open the Less Common Income section and start or revisit the last entry, Miscellaneous Income, 1099-A, 1099-C.
On the next screen, start/revisit the very last entry, Other Reportable Income, and answer Yes on the following screen.
On the next screen, enter a description (for example, "Crypto Interest") and then enter the total USD amount.
You may repeat this for every currency for which you received interest or combine them on a single line.
Select Continue when finished.

If you already see an item in the Less Common Income section, this may have come from the TokenTax import. Make sure not to enter it in the Self-Employment section if the income is not from mining as this will add self-employment taxes.

L

Lee7007Author

Thanks for your help! I went through the steps you provided and it didn't seem to correct the issue, but when I deleted everything and reimported my TokenTax document and 1099-MISC, it seems to calculate the correct tax.

I had a new issue come up when I tried to finalize my TurboTax document. This is the message I received:

Form 1099-Misc Worksheet (Celsius Network LLC): A Link to Schedule C, Schedule F, Form 4832, or the Other Income Statement must be entered. To associate this amount with the proper tax form double-click on the field provided or check the box for the form you want to link this amount to.

Can you please advise on how to resolve this?

R

RobertB4444

This should link to the Other Income tax statement.

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L

Lee7007Author

I added this successfully in "Other Income."

However, it added about $600 to my taxes. Can you explain why my taxes went up for reporting crypto interest on my 1099-MISC when those gains were already reported through importing Token Tax's 1099-B statements?

T

ThomasM125

Form 1099-B would only report the sale of investments, not interest paid on your virtual currency holdings. It is likely that the interest reported on your 1099-MISC form is not duplicated on the form 1099-B that you received.

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