If you only had $7 of income total - you don't have a filing requirement. See this chart to verify.
However, if you had a job or enough other income to require a tax return, you should include the disclosure statement with your tax return.
Although staking hasn't been specifically defined by the IRS, taxpayers should disclose their position on Form 8275 and keep documentation if the IRS questions the treatment the taxpayer has chosen.
Staking cryptocurrencies is a means for earning rewards for holding cryptocurrencies and providing a built-in investor and user base to give the coin value. Earning cryptocurrency through staking is similar to earning interest on a savings account. In exchange for staking your virtual currencies, you can be paid money that counts as taxable income.
You treat staking income the same as you do mining income: counted as fair market value at the time you earn the income and subject to income and possibly self-employment taxes.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
