Hello. I am a customer of BlockFi and I have their Visa Credit Card that pays out rewards in Bitcoin. Their 1099-MISC includes these rewards as part of other income. My understanding was these rewards aren't counted as taxable income until I sell these coins, and only then if a capital gain is realized between what the FMV was at the time of the reward to the time of sell. Can you clarify the tax requirement wrt to credit card rewards paid in crypto?
Obviously, if i don't report these credit rewards as income on Schedule 1, the total income reported on1099-MISC won't match.
Finally, if I am correct wrt to not reporting the rewards as income until i eventually redeem the rewarded tokens into fiat cash (and IFF a capital gain is realized), how do I adjust the 1099-MISC income in Turbo Tax to account for this and/or provide a brief explanation my return to inform the IRS of this fact?
Thank you again, Michael Copley
