Interest from crypto under $600

[aship005]

If I am staking my certain crypto's on blockchains, as well as earning interest with others on centralized exchanges, do I have to report the income If the earned income is less than $600 for the year. As an example, I have staked Cardano last year and it's toal earned from each epoch is less than that amount. As well, I earned less than $100 on Blockfi interest accounts. Should all this be treated cumulatively over $600 or separate b/c they are in separate exchanges or chains? Or do I need to record nothing b/c it’s less than the $600 threshold.

[JohnB5677 · Accepted solution]

Yes, you should report all of your crypto staking and other interest on your tax return.

Staking will generate passive income.  This is similar to getting interest in a checking account.

1. Staking will be taxed in the year that you receive it (Taxed as USD)

2. Posted to Wages & Income

3. Less Common Income

4. Miscellaneous Income, 1099-A, 1099-C

5. Income from renting out personal property (not rental real estate or farm rentals)

You can choose to post the cumulatively, or separately.  Be sure to maintain all documentation.