Yes, you need to report the entire amount of the rewards that you received as ordinary income. Please refer to the section below for more information.
If you stake cryptocurrencies
Staking cryptocurrencies is a means for earning rewards for holding cryptocurrencies and providing a built-in investor and user base to give the coin value. Earning cryptocurrency through staking is similar to earning interest on a savings account. In exchange for staking your virtual currencies, you can be paid money that counts as taxable income.
You treat staking income the same as you do mining income: counted as fair market value at the time you earn the income and subject to income and possibly self employment taxes.
From Turbo Tax Crypto Guide
Here's how to enter your staking rewards in TurboTax from HelenC12:
- 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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