It depends on whether your cryptocurrency was considered earned income or treated as a property sale. To help you determine which of these two possibilities applies to your situation, read through the following scenarios:
Cryptocurrency received as payment for goods and services
Cryptocurrency sold, exchanged, spent or converted
Cryptocurrency received as income, and then held and sold for profit
Cryptocurrency received as a gift
New cryptocurrency received from an airdrop
To enter a 1099-MISC, follow these steps.
Under Wages and Income, scroll down to Income from 1099-MISC.
- Enter the 1099-MISC exactly as printed, and then Continue.
- Enter Cryptocurrency under "Other".
- Describe the reason for this 1099-MISC: REASON
- Select None of these apply, then Continue.
- Select No, it didn’t involve work….. and Continue.
Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.
- Select No, IF it didn’t involve an intent to earn money, then Continue.
- Select NO, then Continue.
Click the DONE button, and that does it.
