Crypto

[Nick6adams]

Can someone provide a list of 3rd party crypto tax websites that calculate crypto taxes for staking/defi that is compatible with TurboTax? Currently I see Koinly and possibly Zenledger.

[JohnB5677]

A cryptocurrency that you have received through staking rewards is treated as ordinary income per IRS guidelines; this means that you will owe tax on the entire (USD) value of your crypto on the day that you received it at your regular income tax rate.

TurboTax has a Tax Calculator:  TurboTax Cryptocurrency Tax Calculator

[Nick6adams]

I am talking about staking/defi…this is different than just buying and selling bitcoin on coinbase. 

[Nick6adams]

My question is can turbo tax calculate my staking taxes? Or do I need to use a 3rd party?

[JohnB5677]

Yes, TurboTax will calculate taxes on Staking positions.  This will be included in your taxable income on your tax return.

Staking will generate passive income.  This is similar to getting interest in a checking account.

1. Staking will be taxed in the year that you receive it (Taxed as USD)

2. Post to Wages & Income

3. Less Common Income

4. Miscellaneous Income, 1099-A, 1099-C

5. Income from renting out personal property (not rental real estate or farm rentals)

[Nick6adams]

Will TurboTax import the transactions from the DAO? So that I can pay taxes on my staking gains? 

[HelenC12]

At this time, TurboTax does not support transaction imports form DAO. However, we're working to support more exchanges in the future.

Cryptocurrency airdrops, along with promos and staking rewards are (usually) free distributions of coins or tokens into multiple wallet addresses to promote and drive adoption of a new virtual currency.

•  To enter, please see the TurboTax FAQ How do I report a crypto airdrop?