How to Report Coinbase USDC Rewards Below $600 without 1099-MISC?

[farhanTT]

The fact is, if the total rewards from USDC are below $600, Coinbase does not generate a 1099-MISC form. So, how am I supposed to report the actual rewards for the year? I'm not sure how to get these values without the form.

Do I need to generate a 1099-MISC myself?

In short, how do you report through TurboTax without a 1099-MISC form?

Thanks.

[DawnC]

You do not need a tax form to report income on your tax return, so not having a 1099 is not an issue.   According to the IRS, airdrops (along with promos and staking rewards) only become taxable once the taxpayer acquires the ability to transfer, sell, exchange, or otherwise dispose of the cryptocurrency.  Airdropped currency that isn't yet usable or accessible isn't taxable until the taxpayer can exercise control over it.

If you can access and exercise control over your crypto airdrop or reward, follow these steps to report it in TurboTax.

1. Convert the amount to USD
2. Enter in TurboTax as Less Common Income - use the link for instructions 

Cryptocurrency Tax Guide

[farhanTT]

I only have Rewards; not Airdrops, so, how do I key in this information in TurboTax?

Which category or type of income? I only know you can enter W-2 for jobs or 1099-MISC for interests. But what about Rewards without any 1099 form?

How do I report or enter this value? Where and which section? Thanks.

[JamesG1]

Enter rewards in TurboTax as other income.

Follow these steps to enter in TurboTax Online:

• Down the left side of the screen, click Tax Home.
• Down the down arrow to the right of Wages & Income.  Click Review / Edit.
• Click the down arrow 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.

The IRS has ruled that 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 rewards to US dollars if they have not been issued in U.S. dollars.