AmyC
Expert Alumni

Get your taxes done using TurboTax

Staking actually has multiple definitions and which one chooses the path. Staking can be a part of the blockchain and verification, this is either hobby or self-employment income. The IRS has been very clear on the first part. However, the IRS is still muddy on the second definition. Staking can also be like bank interest, more of a passive activity, allowing others to use your coin - which is currently not believed to be self-employment, just income.

 

Thanks to your clarification, the easiest thing to do is what @JamesG1 suggested. Follow these steps:

  1. go to the federal income section
  2. scroll to the bottom
  3. Miscellaneous Income, 1099-A, 1099-C, Start
  4. Scroll to the bottom
  5. Other reportable income, Start
  6. Other taxable income?
  7. Select YES
  8. Description 1099-MISC box 3
  9. Amount, enter your amount
  10. continue
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