Coinbase staking rewards - Other Income produces higher tax than Schedule C - which is correct?

It depends. Based on the information provided by you, it is something you do passively and not engaged as a regular ongoing concern as a self employment activity. 

• Coinbase staking rewards are generally considered taxable income based on their fair market value when you gain control of them, often reported on Form 1099-MISC. While often treated as 'other income' (Schedule 1), staking may be classified as self-employment income if deemed a frequent, ongoing business activity, subjecting it to self-employment tax.
• The reason for the lower tax bill could be expenses entered that lowered your Schedule C net profit/income. It may also have provided a qualified business income deduction (QBID).
• You are not obligated to file as 'Other Income' unless you know you are not engaged in the staking as a regular and ongoing business concern, which you seem to clearly indicate you are not approaching it that way.

The self employment tax may not be making a large impact for 2025, however it should be considered when making your decision as it can and will impact it when higher 'stakes' are involved.

• Tax Information for Businesses

Other Miscellaneous Income:

1. Sign into your TurboTax Online account
2. Go to Tax Home (left panel)  Wages and Income  section
3. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
4. Select Other reportable Income > Enter a description (----) and the amount

Self employment Income:

If you are using TurboTax Desktop or TurboTax Online you can use the steps below:

1. Search function in the upper right and type Schedule C. Click on the Jump to.. link
2. This will bring you to the screen 'Here's the business info we have so far'.
3. Select Edit beside your business and then scroll to Business Expenses, Assets, etc. to begin your entry.

• How do I report self employment income?
• Where do I enter my self employment business expenses