topic Do I need to report Crypto received from Coinbase Earn on my 2020 taxes, if I did not sell and received under $50 from Coinbase Earn? If so, do I report it line by line? in Get your taxes done using TurboTax

Do I need to report Crypto received from Coinbase Earn on my 2020 taxes, if I did not sell and received under $50 from Coinbase Earn? If so, do I report it line by line?

pwhitten26 — Wed, 10 Mar 2021 06:14:37 GMT

I got under under $50 in new Crypto from Coinbase Earn, and did not sell it. Do I need to report it, or only if I sell? If I do need to report it, what should I report it as?

Re: Do I need to report Crypto received from Coinbase Earn on my 2020 taxes, if I did not sell an...

JohnB5677 — Wed, 10 Mar 2021 13:44:20 GMT

If there are no sales there will not be a reportable Capital Gain/Loss transaction on your income tax return. Cryptocurrency sold, exchanged, spent or converted, is treated as sale of property.

However, if the $50 was paid to you for some service that you performed it would be considered income, and would be taxed in that way. If you earned money by providing a service or selling something, you’d have to report it as earned income (either wages or self-employment income) as if you’d been paid in cash.

Re: Do I need to report Crypto received from Coinbase Earn on my 2020 taxes, if I did not sell an...

pwhitten26 — Wed, 10 Mar 2021 15:39:09 GMT

Hello,

As per my original question, I am referring specifically to a total of $37 received in payments from Coinbase Earn, which is also shown in CoinTracker. I received this from watching videos on Coinbase.

After researching this for 2 hours, CoinTracker places this in line 8 of form 1040 Schedule 1 in “Other Income”, with a description of “Miscellaneous crypto income”. I am now trying to find this specific form in TurboTax Premier online before I actually pay for the Premium software. I am not finding this form.

I normally use HR Block software and thought I’d try TurboTax, but HR Block seems to be more straightforward.

Re: Do I need to report Crypto received from Coinbase Earn on my 2020 taxes, if I did not sell an...

ColeenD3 — Wed, 10 Mar 2021 15:58:05 GMT

You can add it as Other Income.

I'll choose what I work on
Less Common Income select Start (or Update) for
Miscellaneous Income.
Other reportable income and you can enter your own description(s) and amount(s).

Re: Do I need to report Crypto received from Coinbase Earn on my 2020 taxes, if I did not sell an...

ChuckyS — Mon, 03 May 2021 22:58:32 GMT

If I earned 10 different cryptos coinbase earn, do I need to add 10 different incomes in "Less common income" or I can add only one income with sum all 10 of them (say total of all 10 is USD 40)?

Re: Do I need to report Crypto received from Coinbase Earn on my 2020 taxes, if I did not sell an...

DawnC — Mon, 03 May 2021 23:27:53 GMT

If your cryptocurrency went through a hard fork followed by an airdrop, you'd have to report it as ordinary income. The amount of income you'd report is equal to the fair market value of the new cryptocurrency when it's received and the transaction is recorded (provided you have dominion and control over the cryptocurrency so you can transfer, sell, exchange, or otherwise dispose of it). @ChuckyS

You can report it all as one line item for the total amount of ordinary income. However, you are going to want to keep detailed records. When you sell or exchange the crypto later, you will need to know the basis to calculate your gain or loss at that time. The FMV that you are including in income becomes your tax basis in those cryptos.

How do I report earnings or losses from Bitcoin and other cryptocurrency? If you ''earned the crypto'' or someone paid you in crypto in exchange for self-employment services or goods, that income would be reported as Self-Employment income. Airdrops and hard-forks of new currency are treated as ordinary income which is entered in the Less Common Income section.