Crypto Staking and Air Drops

JimmyMJr — Wed, 11 Feb 2026 05:04:40 GMT

How do I account for the cost basis of tokens that I staked and air drops that I received when reporting as taxes? And/or what are the best practices for both staking and airdrops?

Re: Crypto Staking and Air Drops

DawnC — Thu, 28 Mar 2024 22:39:24 GMT

According to the IRS, airdrops (along with promos and staking rewards) only become taxable once the taxpayer acquires the ability to transfer, sell, exchange, or otherwise dispose of the cryptocurrency. Airdropped currency that isn't yet usable or accessible isn't taxable until the taxpayer can exercise control over it.

The IRS clarified that staking rewards are considered income upon receipt, which subjects US taxpayers to income tax on crypto received from staking. Additionally, when you sell or dispose of staking rewards, capital gains taxes typically come into play. If you can access your crypto airdrop or staking reward, follow these steps to report it in TurboTax.

Step 1 - Convert to USD

Step 2 - Enter in TurboTax

The fair market value of staking rewards must be reported upon receipt, establishing the basis for potential capital gains calculations upon sale. Crypto Guide - capital gains and losses

topic Crypto Staking and Air Drops in Get your taxes done using TurboTax

Crypto Staking and Air Drops

Re: Crypto Staking and Air Drops

Step 1 - Convert to USD

Step 2 - Enter in TurboTax