Rewards from online competitions in the form of cryptos are reported in the same was as other taxable awards. If this is not your line of business, then the income would be reported as other income.
You will have to determine the fair market value on the day it was received.
To do this in TurboTax, follow these steps to report the Other Miscellaneous Income.
- From the left menu, go to Federal and select the first tab, Wages & Income
- Add more income by scrolling down to the last option, Less Common Income, and Show more
- Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
- Choose the last option, Other reportable income and Start and Yes
Make sure that you keep that information because you will need it when disposing.
