Answer YES, if Robinhood gave you a promotional crypto reward (such as their "Learn and Earn" crypto, sign-up bonuses, or referral rewards). The IRS explicitly states that you must check "Yes" if...
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Answer YES, if Robinhood gave you a promotional crypto reward (such as their "Learn and Earn" crypto, sign-up bonuses, or referral rewards). The IRS explicitly states that you must check "Yes" if you: Received digital assets resulting from a reward or award. Received an airdrop. (Promotional crypto is often treated similarly to an airdrop). Received payment for services (e.g., if the reward was for completing a "Learn" module, the IRS views that as a form of compensation/reward for your time). If your total rewards from Robinhood were $600 or more, they will issue you a 1099-MISC. Open or continue your return. Under Federal tab, Click on Wages & Income. Scroll down to Other Common Income, and Click on Start/Revisit next to Form 1099-MISC. Enter the details exactly as shown on your form. When asked for the "reason" or "source," select "Nonbusiness income" or "Other income." When asked if it "involved work like your main job" or if there was an "intent to earn money," answer NO (otherwise the program will incorrectly charge you 15.3% Self-Employment tax). If it was under $600, you may not get a form, but you are still required to report the fair market value of the crypto (at the time you received it) as "Other Income" on Schedule 1 (it's considered Ordinary Income). Open or continue your return. Under Federal tab, Click on Wages & Income. Scroll down to Less Common Income, and Click on Start/Revisit next to Miscellaneous Income, 1099-A, 1099-C. Scroll down to Other reportable income, and Click on Start. Select Yes to "Any Other Taxable Income?" Enter "Crypto Rewards" or "Robinhood Crypto Bonus" (for the description). Enter the USD value of the crypto at the exact time you received it. That reward amount (e.g., $5) becomes your cost basis; thus if you ever sell that crypto later, you will only pay capital gains tax on any earnings above that $5.