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Deductions & credits
Yes, as a general rule, the taxpayer has taxable income measured by the fair market value of the credits. This income should be entered on your tax return as other income.
To enter your income from the sale of carbon credits as other income follow these steps:
1. Open or continue your return, if you're not already in it.
2. Select the Wages & Income tab
3. Scroll down to Less common Income select show more
4. On the line Miscellaneous Income, 1099-B, 1099-C select Start/revisit
5. On the page Let’s work on any miscellaneous income click Start/Revisit on the line Other reportable income
6. Answer yes to Any other taxable income
7. Enter the description and amount on the page Other Taxable Income.
8. Answer Done on the page Other Taxable Income Summary.
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