This may be staking rewards.
The IRS has ruled that staking rewards only become taxable once the taxpayer "acquires the ability to transfer, sell, exchange, or otherwise dispose of the cryptocurrency."
You will need to convert your staking rewards to US dollars if they have not been issued as U.S. dollars. Here is how to enter your staking rewards in TurboTax Online as other income:
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- To the right of Less Common Income. click on the down arrow.
- To the right of Miscellaneous Income, 1099-A, 1099-C, click the Start / Revisit button.
- To the right of Other reportable income, click the Start / Revisit button.
- At the screen Other Taxable Income, enter a description such as “Rewards” and an amount.
The entries will be reported:
- on line 8z of Schedule 1 of the Federal 1040 tax return, and
- on line 8 of the Federal 1040 tax return.
@avigo45
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