How are Stablecoin Rewards Taxed?

Hi,

I have an account at Gemini (a crypto exchange). I staked $1,000 and, in exchange, Gemini gives me 2.00 GUSD (Gemini Dollar Stablecoin) per month.

I haven't yet converted the GUSD to US Dollars (or other cryptocurrency). Do I need to report the GUSD as ordinary income, or is it only reported when if I convert the GUSD to US $ or another cryptocurrency? If I do need to report it, where do I report it for federal tax purposes?

Thanks,

Jason

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How are Stablecoin Rewards Taxed?

Since you are being paid with a cryptocurrency, you will report the amounts you received as income for 2021.

The transaction will be entered similar to that of an airdrop.

Take a look at the following TurboTax article for further details about how to enter your information:

How do I report a crypto airdrop?

How do I report earnings or losses from Bitcoin and other cryptocurrency?

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