Blockfi Cryptocurrency Interest

Forum|Forum|4 years ago
March 26, 2022
1 reply
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I earned $350 worth of interest income in the form of USDC, a stable coin (cryptocurrency) with the Blockfi savings account in 2021. Since the interest amount was <$600, Blockfi did not issue 1099-Misc. I did not have any other crypto buying or selling in 2021, only the $350 interest from the $5k parked in Blockfi savings account. Couple of questions:

1. My answer for following question should be 'No', right? - Did you acquire, sell, exchange, or dispose any financial interest in any virtual currency?

2. Do I report interest income as other income with no intent to earn to earn money? Since I don't have 1099-Misc, I am not sure what to enter when Turbotax asks about EIN of Blockfi.

Best answer by JohnB5677

You are incorrect about the first question. You did acquire Income from staking, which is a taxable event. You should answer Yes.

You are correct. You did not do this with the intent to earn money. The question is confusing, but the way the IRS looks at this is: Do you have to have a schedule C and could you make deductions against it?

Staking will generate passive income.
With your return open, go to
1. Federal
2. Wages & Income
3. Less Common Income
4. next to Miscellaneous Income, 1099-A, 1099-C
5. Select Other Reportable Income
6. Answer Yes on Any Other Taxable Income?
7. Continue through the interview