Help with Coinbase MISC

What is the miscellaneous income for?  You are obviously under the thresholds below, so Coinbase is not required to send you a 1099-MISC form.

 

If you received certain payments above certain amounts for your trade or business unrelated to nonemployee compensation for the following items, they will typically be reported to you on Form 1099-MISC:

• At least $10 in royalties (box 2) or broker payments in lieu of dividends or tax-exempt interest (box 8).
• At least $600 in:
  • Rent (box 1);
  • Prizes and awards (box 3);
  • Other income payments (box 3);
  • Generally, the cash paid from a notional principal contract to an individual, partnership or estate (box 3);
  • Any fishing boat proceeds (box 5);
  • Medical and health care payments (box 6);
  • Crop insurance proceeds (box 9);
  • Payments to an attorney (box 10);
  • Section 409A deferrals (box 12); or
  • Nonqualified deferred compensation (box 14).
• You should also receive Form 1099-MISC from any business or person that withheld any federal income tax on your behalf under backup withholding rules, regardless of amount withheld or the amount paid.

It was 87 cents ($0.87) for "rewards". They do not explain what that is for. Doesn't seem like $0.87 would apply to any of the things in the list you sent unless I am missing something. Why would Coinbase call this "taxable activity"? That $0.87 It is the only activity I had with the company in 2023. 

This may be staking rewards.

 

The IRS has ruled that staking rewards only become taxable once the taxpayer "acquires the ability to transfer, sell, exchange, or otherwise dispose of the cryptocurrency." 

 

You will need to convert your staking rewards to US dollars if they have not been issued as U.S. dollars. Here is how to enter your staking rewards in TurboTax Online as other income:

 

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• To the right of Less Common Income. click on the down arrow.
• To the right of Miscellaneous Income, 1099-A, 1099-C, click the Start / Revisit button.
• To the right of Other reportable income, click the Start / Revisit button.
• At the screen Other Taxable Income, enter a description such as “Rewards” and an amount. 

 

The entries will be reported:

 

• on line 8z of Schedule 1 of the Federal 1040 tax return, and 
• on line 8 of the Federal 1040 tax return.

@avigo45