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Level 2
posted Apr 7, 2023 5:11:36 PM

How do i report Crypto Interest from a 1099MISC without triggering self-employment tax?

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1 Replies
Expert Alumni
Apr 8, 2023 6:52:27 AM

It depends on what you mean by “crypto interest.” If this is interest paid on your account, it would normally be reported on Form 1099-INT. In that case, you would report it the same as bank interest.

 

Otherwise, report your 1099-MISC as Other Income.

 

  • Type 1099-misc in Search in the upper right
  • Click Jump to 1099-misc
  • If you already entered a 1099-MISC, you will see "1099-MISC Summary"
  • Tap EDIT next to your form
  • On the screen “Does one of these uncommon situations apply?” select None of these apply
  • On “Did the xxx involve work that’s like [your] main job? Select NO
  • Answer “How often did [you] get income from xxx?”
  • On “Did the xxx involve an intent to earn money” select NO

Here's how to enter a Form 1099-INT in TurboTax:

              1. Type interest in Search in the upper right

              2. Select Jump to interest

              3. Say YES to Did you have investment income in 2022?

              4. Continue past Get ready to be impressed

              5. On Let’s import your tax info go to the bottom and select Enter a different way

              6. On OK, let's start with one investment type, select Interest, then Continue

              7. On How do you want to enter your 1099-INT, select Type it in myself

              8. On Let’s get the info from your 1099-INT enter your interest info