There are three screens in the standard entry of an IRS Form 1099-MISC. The screens are:
- Did the xxx involve work that’s like your main job?
- How often did you get the income?
- Did the xxx involve an intent to earn money?
These questions try to discern whether or not the income being reported on the 1099-MISC qualifies as self-employment income.
The questions refer to the tests that the IRS would use were your or my tax return scrutinized by the IRS to determine whether the 1099-MISC income would be subject to both income tax and self-employment tax.
You may enter your staking rewards in TurboTax Online as follows:
- With your return open, select Federal from the left side navigation.
- On the top tabs, select Wages & Income
- Scroll down to Less Common Income section and select Start or Revisit next to Miscellaneous Income, 1099-A, 1099-C
- On the next screen, select Start or Revisit next to Other Reportable Income
- Answer Yes on the Any Other Taxable Income? screen
- On the next screen, enter a description and enter the total US dollar amount
- Continue with the onscreen interview until complete.
The income is reported on Schedule 1 line 8z and Federal 1040 line 8. View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.
The IRS has ruled that staking rewards only become taxable once the taxpayer "acquires the ability to transfer, sell, exchange, or otherwise dispose of the cryptocurrency."
03/31/2022 7:48 AM PST]
@Pebbles2
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