Where do I report crypto staking rewards?

Forum|Forum|4 years ago
February 27, 2022
3 replies
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This is not airdrop. I see everyone in other questions lumping staking in with airdrops. I understand airdrops might not be usable immediately but staking rewards are available as soon as you get them. Where do you report this in TurboTax?

TurboTax Premier Online

Best answer by HelenC12

The IRS ruled that staking rewards only become taxable once the taxpayer "acquires the ability to transfer, sell, exchange, or otherwise dispose of the cryptocurrency."

You'll need to convert your staking rewards to US dollars if they haven't been issued is U.S. dollars. Here's how to enter your staking rewards in TurboTax:

With your return open, select Federal from the left side navigation.
On the top tabs, select Wages & Income
Scroll down to Less Common Income section and select Start or Revisit next to Miscellaneous Income, 1099-A, 1099-C
On the next screen, select Start or Revisit next to Other Reportable Income
Answer Yes on the Any Other Taxable Income? screen
On the next screen, enter a description and enter the total US dollar amount
Continue with the onscreen interview until complete.

HelenC12Answer

The IRS ruled that staking rewards only become taxable once the taxpayer "acquires the ability to transfer, sell, exchange, or otherwise dispose of the cryptocurrency."

You'll need to convert your staking rewards to US dollars if they haven't been issued is U.S. dollars. Here's how to enter your staking rewards in TurboTax:

With your return open, select Federal from the left side navigation.
On the top tabs, select Wages & Income
Scroll down to Less Common Income section and select Start or Revisit next to Miscellaneous Income, 1099-A, 1099-C
On the next screen, select Start or Revisit next to Other Reportable Income
Answer Yes on the Any Other Taxable Income? screen
On the next screen, enter a description and enter the total US dollar amount
Continue with the onscreen interview until complete.

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ptmike111

Awesome answer!

I've been searching for this answer, thanks so much!

joshh0

I have received a couple 1099-MISC forms from exchanges that have given me staking rewards. I have not converted these coins back into US Dollars yet, however since I received a 1099 with the apparent value of the coins when I received them (?), I suppose I need to report and pay tax on them now...? Even though I haven't converted to USD, or otherwise sold or disposed of these rewards.??

HillsideBruce

Wanted to open a new thread, but didn't see the option...

I have staked ETH, and it shows up on in Ledger Live as STETH (staking via Lido)... The amount of STETH I have goes up, as I do a weekly portfolio thang and know the amount goes up... I do not see STETH staking rewards transactions in Ledger Live... Research has shown that STETH which is considered liquid staking has a staking reward that accrues daily... My question is how do I report this on my taxes? I have no transaction history to show me the daily amount, let alone possibly just reporting the value on Dec 31 and compare that with its value at the beginning of the year (there doesn't seem to be a way to get the value on a particular day/historic values)... I am hoping that maybe, just maybe I am not the only person preparing taxes who has staked ETH and is also wondering, OR already figured out - how to report on taxes STETH staking rewards...