Do i need to report approximately $100 of bit coin I won in a contest? I cashed it out immediately and ended up with around $97. What will happen if I don't?

won a contest from cashapp for bit coin and then I cashed out my winnings.

154

Expert Alumni

Feb 7, 2021 3:20:22 PM

Without a 1099-MISC, the IRS will not have a record of this income. It is your responsibility to report it on your tax return.

(If you only won $100 in the contest (and took it as a cash payout), you probably won't get a 1099-MISC).

You can follow these steps to enter these winnings:

Click "Take Me to my Return"
Click "Federal" from the left side of your screen
Scroll down to "Less Common Income" and click "Show More"
Click "Start" to the right of Form 1099-A, 1099-C
Scroll down to "Other Reportable Income" and click "Start"
On the Any Other Taxable Income? screen, click Yes.
On the Other Taxable Income screen, add a description and the dollar amount.
Continue with the onscreen interview until complete.