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Level 1
posted Mar 27, 2022 2:46:44 PM

Answering "yes" on the 1040 cryptocurrency question when I didn't sell any crypto but got free crypto through promotions

I wanted to find out whether I needed to answer "yes" on the cryptocurrency question on my 1040.

 

I just started buying cryptocurrency in 2021. I didn't sell, exchange, or dispose of any of that crypto, and it looks like I just made income from bonuses/promotions, free crypto for participating in Coinbase Earn, and interest on some of my crypto through Gemini Earn.

 

From the income I mentioned from the promotions, should I answer "yes" on the cryptocurrency question on my 1040? Would the promotions and freebies be considered as receiving crypto or otherwise acquiring any financial interest in any virtual currency?

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1 Replies
Expert Alumni
Mar 27, 2022 3:28:29 PM

You should answer Yes.  You bought and a financial interest in a virtual currency.