Why the 1099-NEC popping up in Turbo Tax? I am attempting to file trading and investment taxes. I have a few digital token transactions as well. I don't have a 1099-NEC

The reason a 1099-NEC form is popping up in TurboTax is because your cryptocurrency transaction(s) may be considered self-employed earned income.  

 

For tax purposes, it’s either considered earned income or treated as property sales. We can help you figure out which applies to your situation.

 

It’s considered earned (self-employment) income when you:

• Receive it as payment for goods or services (like if you were paid in cash)
• Mine it and make a profit
• Receive new cryptocurrency from a hard fork followed by an airdrop or other transfer

It’s treated as a property sale, and the earnings are capital gains, when you:

• Sell it (like you would stock)
• Exchange it (swap one type of cryptocurrency for another)
• Spend it (use it as payment for goods and services)
• Convert it to US dollars (sell cryptocurrency to buy regular currency)

 

Related Information:

 

 

• How do I report earnings or losses from Bitcoin and other cryptocurrency?
• How do I report Bitcoin or other cryptocurrency as a capital gain?
• I didn't receive a 1099-MISC, 1099-B, or 1099-K for my Bitcoin or other cryptocurrency earnings, do I have to report them?
• I'm mining Bitcoin, what does that mean for my taxes?
• What if I didn't get a 1099-NEC or 1099-MISC, but made money from self-employment?