This donut app offers high yield interest rate plans and it uses its lending partners to put USDC crypto via DeFi as collateral to earn interest. I have earned only $80 interest which is still in donut app account i never withdrew yet. Do i need to declare this interest on tax forms even i have not withdrawn or transferred to my bank account?
This interest will not be considered bank interest ? And the money i put in high yield saving plan is not DeFi lending?
the next screen shows question- Do any of the uncommon situation apply?
Do any of these uncommon situations apply?
I need to adjust the interest reported on my form. Learn more
My state (ME, MD, MA, NH, NJ, or WV) doesn't tax all of this interest. Learn more
State
Massachusetts bank interest
None of these apply.
