topic Re: Double counting interest earned through Celsius Network in Get your taxes done using TurboTax

Double counting interest earned through Celsius Network

Lee7007 — Mon, 09 Mar 2026 04:18:40 GMT

I earned interest in 2021 through holding cryptocurrency on Celsius Network.

I did my cryptocurrency taxes through TokenTax, which included my transaction history from Celsius Network, and imported my documents to TurboTax. But after I added my 1099-MISC I received from Celsius Network, it increased my taxes by about $1,000.

I'm confused that my taxes increased, because I thought my interest gains were already accounted for through importing from TokenTax.

Can anyone provide me some direction?

Re: Double counting interest earned through Celsius Network

RaifH — Fri, 28 Jan 2022 22:32:51 GMT

TokenTax should have imported your Cryptocurrency Mining & Income Tax Report which should duplicate the information found on your 1099-MISC. Any trading activity should be reported separately.

Since it sounds like the income from your 1099-MISC was for interest earnings and not mining, you want to make sure it is entered correctly on your tax return.

With your return open, go to Federal > Wages & Income
Open the Less Common Income section and start or revisit the last entry, Miscellaneous Income, 1099-A, 1099-C.
On the next screen, start/revisit the very last entry, Other Reportable Income, and answer Yes on the following screen.
On the next screen, enter a description (for example, "Crypto Interest") and then enter the total USD amount.
You may repeat this for every currency for which you received interest or combine them on a single line.
Select Continue when finished.

If you already see an item in the Less Common Income section, this may have come from the TokenTax import. Make sure not to enter it in the Self-Employment section if the income is not from mining as this will add self-employment taxes.

Re: Double counting interest earned through Celsius Network

Lee7007 — Sat, 29 Jan 2022 00:56:18 GMT

Thanks for your help! I went through the steps you provided and it didn't seem to correct the issue, but when I deleted everything and reimported my TokenTax document and 1099-MISC, it seems to calculate the correct tax.

I had a new issue come up when I tried to finalize my TurboTax document. This is the message I received:

Form 1099-Misc Worksheet (Celsius Network LLC): A Link to Schedule C, Schedule F, Form 4832, or the Other Income Statement must be entered. To associate this amount with the proper tax form double-click on the field provided or check the box for the form you want to link this amount to.

Can you please advise on how to resolve this?

Re: Double counting interest earned through Celsius Network

RobertB4444 — Mon, 31 Jan 2022 03:06:41 GMT

This should link to the Other Income tax statement.

Re: Double counting interest earned through Celsius Network

Lee7007 — Mon, 31 Jan 2022 03:44:24 GMT

I added this successfully in "Other Income."

However, it added about $600 to my taxes. Can you explain why my taxes went up for reporting crypto interest on my 1099-MISC when those gains were already reported through importing Token Tax's 1099-B statements?

Re: Double counting interest earned through Celsius Network

ThomasM125 — Mon, 31 Jan 2022 23:44:11 GMT

Form 1099-B would only report the sale of investments, not interest paid on your virtual currency holdings. It is likely that the interest reported on your 1099-MISC form is not duplicated on the form 1099-B that you received.

Re: Double counting interest earned through Celsius Network

Lee7007 — Tue, 01 Feb 2022 05:43:15 GMT

When I prepared my crypto taxes using TokenTax, I imported a file from Celsius with the detailed transactions and interest gained in 2021.

I opened my 1099-B section in TurboTax and confirmed that it listed my interest earned from Celsius.

For resolving this issue, would one of the following solutions work?

1. Should I not file my 1099-MISC in TurboTax, because this interest is already accounted for in my 1099-B section?

2. Should I not have imported my Celsius file when calculating my crypto taxes with TokenTax?

Re: Double counting interest earned through Celsius Network

JohnB5677 — Tue, 01 Feb 2022 16:09:26 GMT

I am not aware of an area designated for interest on the 1099-B input screen. Interest is taxed differently than Capital Gain, so it should not be included with the Crypto sales.

You should delete any postings in the 1099-B area that indicate "interest". and then post the statement separately for the interest.

Re: Double counting interest earned through Celsius Network

Lee7007 — Tue, 01 Feb 2022 17:47:39 GMT

The interest I received through Celsius was in the form of cryptocurrency.

From my understanding, I needed to import my Celsius cryptocurrency gains in the 1099-B area because when I sell my cryptocurrency earned at a future date, the IRS will need to know where I received it.

If I deleted my postings in the 1099-B where I earned cryptocurrency as interest, will it create problems for me if I sell my holdings later on?

Re: Double counting interest earned through Celsius Network

RaifH — Tue, 01 Feb 2022 19:12:27 GMT

No, this will not create problems in the future. It sounds like Celsius is importing all transactions to the 1099-B. As @JohnB5677 correctly said, this is not where your miscellaneous income should be reported, and you should go through your 1099-B before you import it to TurboTax and delete any transaction that is marked interest.

You will then report that interest using the method as miscellaneous other income as outlined above using the 1099-MISC that Celsius sent to you. That way it will only show up once on your tax return, in the correct area.

You will want to keep track of your cost basis and acquisition dates of all your holdings, either through your own records or through Celsius or other third-party software. For example, if you received interest in 2021 and reported that using the 1099-MISC, you will want to keep track of the date you earned that interest and the value in US dollars at the time it was earned. That way if you later sell it in 2022, you know how much to report as a gain or loss and whether it was long-term or short-term.

Re: Double counting interest earned through Celsius Network

Lee7007 — Tue, 01 Feb 2022 19:19:37 GMT

Thank you to everyone who responded! I appreciate your insight with my tax issue.

Re: interest earned through Celsius Network

Kmnapoli2 — Tue, 15 Mar 2022 21:55:26 GMT

I earned interest in 2021 through holding cryptocurrency on Celsius Network.
After I entered the 1099-Misc

there are few questions that I don’t know how to answer.

1) Did the crypto interest involve work that’s like Monica’s main job?

which one is the correct answer

yes or no

2)did the crypto interest involve an intent to eran money?

yes or no

Re: interest earned through Celsius Network

Kmnapoli2 — Tue, 15 Mar 2022 22:17:38 GMT

I had a new issue come up when I tried to finalize my TurboTax document. This is the message I received:

Form 1099-Misc Worksheet (Celsius Network LLC): A Link to Schedule C, Schedule F, Form 4835, or the Other Income Statement must be entered. To associate this amount with the proper tax form double-click on the field provided or check the box for the form you want to link this amount to.

Can you please advise on how to resolve this?

Re: interest earned through Celsius Network

RobertB4444 — Tue, 15 Mar 2022 23:07:22 GMT

@Kmnapoli2 To the first two questions- unless your main job is trading in cryptocurrency this did not involve activities like your main job.

If you were trying to make money at the activity as opposed to just having a hobby then it is subject to self employment tax.

When you are linking the 1099-MISC to another form it will either be linked to schedule C (if you were attempting to earn money through your mining) or Other Income (if it was just a hobby regardless of whether you made money).

Re: Double counting interest earned through Celsius Network

pazimzadeh — Wed, 13 Apr 2022 05:46:31 GMT

Following these instructions leads to a page which says to enter a brief description of the income, but NOT to to enter income reported on form 1099-MISC. However, Form 1099-MISC is exactly what Celsius provides.

The place where TurboTax suggests entering 1099-MISC is Self-Employment, however when I entered my Celsius earnings the self-employment section my taxes due did not increase, suggesting it is not being taken into account.

Thanks in advance for your help,

paz

Re: Double counting interest earned through Celsius Network

GeorgeM777 — Sun, 17 Apr 2022 22:19:14 GMT

If the income from the Celsius Network is not income related to self-employment, then you can report the income as other income. To do so, in TurboTax online, follow these steps:

go to Income & Expenses,
scroll down the page to the last item Less Common Income, select Miscellaneous income,
then from the list select Other reportable income.
you will have to enter the amount you earned plus a short description.

If you are using TurboTax Online, here are the steps to follow to preview your Form 1040 and see the amount on line 8:

Open or continue your return.

Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
With the Tax Tools menu open;
Select Tools.
Next, select View Tax Summary in the pop-up.
Then Preview my 1040 in the left menu.
Select Back in the left margin to return to the page where you left off

If you need to report this income as self-employment income, then you will pay income tax and self-employment tax depending on the amount entered. If you reported this income as self-employment income, did you enter any expenses for this work? If yes, perhaps those expenses eliminated any tax due for this income which might explain why you are seeing no change.

@pazimzadeh

Re: Double counting interest earned through Celsius Network

pazimzadeh — Sun, 17 Apr 2022 22:38:03 GMT

When I follow the steps:

go to Income & Expenses, scroll down the page to the last item Less Common Income, select Miscellaneous income, then from the list select Other reportable income. you will have to enter the amount you earned plus a short description

It leads to a page which says "Do not report income reported on Form 1099-MISC" (See attached)

Re: Double counting interest earned through Celsius Network

GeorgeM777 — Sun, 17 Apr 2022 23:34:11 GMT

Thanks for the follow-up. You can disregard the Do not enter income reported on Form 1099-Misc, and enter your income amount. It will be reported on line 8 of your Form 1040.

Or, if you prefer, you can enter the amount as you had done previously, but when you get to the page Did this involve an intent to make a profit (or similar page) select No. Selecting No will not generate a Schedule C Profit or Loss From Business. The income will be reported on line 8 of Form 1040, the same as the above.

If you want to get back to how you originally began to enter this income, enter 1099 Misc in the search bar. Then use the jump-to link to take you to the page where you can begin to re-enter your information.

@pazimzadeh