Solved: I have crypto miscellaneous income. I'm told I need to report this as additional income on line 21 of my 1040. How do I do this in turbo tax?

1 Best answer

Expert Alumni

Mar 9, 2023 5:04:14 AM

Retain with your tax information a copy of whatever documentation you used to determine the amount of rewards that you entered into your tax return.

You will need to convert your rewards to US dollars if they haven't been issued as U.S. dollars. Here is how to enter your 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.

@Tweezer2001

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Expert Alumni

Jan 30, 2023 10:52:51 AM

The 1099-B that you received from the Crypto income should show the amount to report as Miscellaneous income.

To enter a 1099-MISC for miscellaneous income in TurboTax:

Open or continue your return
Select Search and search for 1099-misc
Select Jump to 1099-misc
Answer Yes to Did you get a 1099-MISC?
- If you already entered a 1099-MISC, on the 1099-MISC Summary screen select Add Another 1099-MISC
Enter the info from your form into the corresponding boxes
- If you need to enter boxes 4–6 or 8–17, select My form has other info in boxes 1–18 to expand the form

Level 2

Mar 8, 2023 9:19:34 PM

I have crypto income that needs to be reported as additional income. I've used Schedule 1 and entered a total on 1040 line 8.

There's no 1099 for these crypto rewards to be reported as additional income and I don't believe that I am including these transactions on my 8949. What documentation (if any) is to be included with 'other income' reported on 1040 line 8?

Expert Alumni

Mar 9, 2023 5:04:14 AM

Retain with your tax information a copy of whatever documentation you used to determine the amount of rewards that you entered into your tax return.

You will need to convert your rewards to US dollars if they haven't been issued as U.S. dollars. Here is how to enter your 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.

@Tweezer2001

Join us for our Community Crypt event. Sign up here.

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I have crypto miscellaneous income. I'm told I need to report this as additional income on line 21 of my 1040. How do I do this in turbo tax?