I earn interest income in the form of USDC, a stable coin (cryptocurrency) with the Blockfi savings account. Technically, this is a "payment of property" according to the Blockfi web site here: https://blockfi.com/what-to-expect-for-tax-season . They issued me a 1099-MISC, and the amount I earned is shown on box 3. When I enter this amount and my 1099-MISC in Turbotax, it keeps classifying it as business income subject to self-employment tax. I have read conflicting things about whether box 3 income should be subject to self-employment tax or not. Can anyone provide clarification? This is not business income. It is interest payments for loaning cryptocurrency to Blockfi, so I find it odd that they issued a 1099-MISC instead of a 1099-INT but that is what they issue. Turbotax is classifying it as business income and it is definitely charging me the self-employment tax from this amount. Is this correct?
