One thing I forgot to be clear about. Sch E is used for rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits (REMICs).. Cryptocurrency is not real estate, it is personal property. On Schedule 1, Part 1, Line 8K: "Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property." This is where you enter the income from staking if you wish to report it as rental income.....because it's personal property. Schedule E does not apply.
Or you could enter it in Line 8z and put "staking income" next to it. I decided to report it as rental of personal property on Line 8K for the reasons I mentioned in my first post.
