How should I go about reporting Ordinary Income? It's marked as other income on my Loss/Gain report, but on coinbase it's marked as reward.

Coinbase offers learning rewards, i'm not sure how to report. The tax summary on Coinbase says to Report this as additional income on line 21 of my 1040. And Turbo tax says to do it later in the ordinary income section. I made under 600 in misc Income, so I did not receive a 1099 misc. Where would I find those forms on Turbotax, or how would I go about reporting other Income.

786

Level 15

Feb 2, 2023 9:39:02 PM

Search TurboTax for the income topic "Other Income".

@03130db00754

Expert Alumni

Feb 8, 2023 5:26:08 AM

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 haven't been issued is U.S. dollars. Here is how to enter your staking rewards in TurboTax as other income:

Down the left side of the screen, click Federal.
Down the left side of the screen, click Wages & Income.
Click Show more to the right of Less Common Income.
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 “Cryptocurrency 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.

@03130db00754

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How should I go about reporting Ordinary Income? It's marked as other income on my Loss/Gain report, but on coinbase it's marked as reward.