Thanks, Colleen, but my Reply to your earlier message three hours ago still holds true.
Thanks, but this does not allow me to report my 1099-MISC income from staking.
It clearly says: "Do not enter income reported on Form 1099-MISC.
The IRS will be looking for my 1099-MISC. But when I report my 1099-MISC on TurboTax under "Income from Form 1099-MISC," it forces it into Self-Employment and adds 15.3% Self-Employment tax on top of the regular Income tax.
When I click on the question, "What is I got my 1099-MISC for something other than a job?" it says, "You might have gotten your 1099-MISC for prize money, a lawsuit settlement or another reason that wasn't work-related. In that case, simply type in the reason (like "prize money" or "lawsuit settlement"). But if I type in Crypto Staking Rewards or Crypto Interest Income, it forces it to Self Employment and adds 15.3% Self-Employment tax on top of the regular Income tax.
This is clearly a glitch in the TurboTax system. There is no way to report a 1099-MISC without it being force into Self Employment and adding 15.3% Self Employment Tax unless it is one of those "uncommon situations" like "I owned a farm," "prize winnings," "lawsuit settlement," etc. TurboTax needs to add one for "Crypto Staking Rewards and Crypto Interest Income reported on a 1099-MISC." I checked "Prize Winnings and Awards" because this income is called "Staking Rewards." I'll just have to explain that to the IRS if they ask.
.
