topic If you send crypto to a contract that pays rewards but the original investment cannot be returned, do you claim as income after the original investment is met? in Get your taxes done using TurboTax

If you send crypto to a contract that pays rewards but the original investment cannot be returned, do you claim as income after the original investment is met?

tboston20 — Mon, 23 Feb 2026 10:50:31 GMT

For example, you send $100 worth of crypto to a contract. From you which receive $40, $60, $30 and $20. Is each dollar amount received viewed as income? Or, is the $40, $60 not viewed as income since it totals $100 (original investment) and the remaining $30 and $20 is viewed as income?

Thank you

Re: If you send crypto to a contract that pays rewards but the original investment cannot be returned, do you claim as income after the original investment is met?

Anonymous_ — Sun, 15 Jan 2023 18:23:27 GMT

See https://ttlc.intuit.com/turbotax-support/en-us/help-article/cryptocurrency/cryptocurrency-info-center/L7oG1wKw3_US_en_US

Thank you

tboston20 — Mon, 16 Jan 2023 21:15:02 GMT

Thank you

Re: If you send crypto to a contract that pays rewards but the original investment cannot be returned, do you claim as income after the original investment is met?

tboston20 — Sun, 15 Jan 2023 19:03:30 GMT

Is there a particular link that specifically talks about this?

Re: If you send crypto to a contract that pays rewards but the original investment cannot be retu...

PattiF — Wed, 18 Jan 2023 18:32:07 GMT

Yes, you need to report the entire amount of the rewards that you received as ordinary income. Please refer to the section below for more information.

If you stake cryptocurrencies

Staking cryptocurrencies is a means for earning rewards for holding cryptocurrencies and providing a built-in investor and user base to give the coin value. Earning cryptocurrency through staking is similar to earning interest on a savings account. In exchange for staking your virtual currencies, you can be paid money that counts as taxable income.

You treat staking income the same as you do mining income: counted as fair market value at the time you earn the income and subject to income and possibly self employment taxes.

From Turbo Tax Crypto Guide

Here's how to enter your staking rewards in TurboTax from HelenC12:

With your return open, select Federal from the left side navigation.
On the top tabs, select Wages & Income
Scroll down to Less Common Income section and select Start or Revisit next to Miscellaneous Income, 1099-A, 1099-C
On the next screen, select Start or Revisit next to Other Reportable Income
Answer Yes on the Any Other Taxable Income? screen
On the next screen, enter a description and enter the total US dollar amount
Continue with the onscreen interview until complete.

@tboston20