You do not need a tax form to report income on your tax return, so not having a 1099 is not an issue. According to the IRS, airdrops (along with promos and staking rewards) only become taxable once the taxpayer acquires the ability to transfer, sell, exchange, or otherwise dispose of the cryptocurrency. Airdropped currency that isn't yet usable or accessible isn't taxable until the taxpayer can exercise control over it.
If you can access and exercise control over your crypto airdrop or reward, follow these steps to report it in TurboTax.
- Convert the amount to USD
- Enter in TurboTax as Less Common Income - use the link for instructions
Cryptocurrency Tax Guide
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