How to report MISC income (from Coinbase rewards)

[avigo45]

I have a small amount of MISC income from 2021 in Coinbase. I guess they gave some free rewards and it is considered income. It is well below their $600 threshold for sending a 1099-MISC 

How and where do I report this income on my return?

Thank you

[ColeenD3]

Please see this answer from @HelenC12.

The IRS ruled that staking rewards only become taxable once the taxpayer "acquires the ability to transfer, sell, exchange, or otherwise dispose of the cryptocurrency." 

You'll need to convert your staking rewards to US dollars if they haven't been issued is U.S. dollars. Here's how to enter your staking rewards in TurboTax:

1. With your return open, select Federal from the left side navigation.
2. On the top tabs, select Wages & Income
3. Scroll down to Less Common Income section and select Start or Revisit next to Miscellaneous Income, 1099-A, 1099-C
4. On the next screen, select Start or Revisit next to Other Reportable Income
5. Answer Yes on the Any Other Taxable Income? screen
6. On the next screen, enter a description and enter the total US dollar amount
7. Continue with the onscreen interview until complete. 

[avigo45]

Thanks. What is the actual form that this will be applied to on the actual return?

[DianeW777]

This income will be reported and shown on Schedule 1, line 8z, then carried to Form 1040.

You can view your 1040 form before you e-file:

1. Open or continue your return. (TurboTax Online)
2. With the Tax Tools menu open, you can then:
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.
3. TurboTax CD/Desktop - Select Forms (upper right) > Scroll to Schedule 1 (left) > View line 8z

[jpech2005]

Hi there. So expanding on the original question, I produced a Form 8949 for Coinbase and I have earnings that total $10 from their learning program where I earned $10 worth of XLM. I then transferred it to my Coinbase wallet. It increased to $21.32 and I converted to Eth shortly after. How would I report this? Do I report twice 1. original $10 and then the gains 2. $11.32? How and where? Thank you.

[JamesG1]

Are you saying that you have downloaded information for IRS form 8949?  Or have you received a paper IRS form 1099-B Proceeds From Broker Statement?  Please advise.

Have you received a .csv file(s) which reports income information?  Are you able to upload the information into the TurboTax software?

During the upload process, the income should report correctly whether it be interest, capital gain, other income, etc. 

@jpech2005

[jpech2005]

Hey, James. Yes, I downloaded the 8949 and inputted the info into the Turbo Tax program. 

[JamesG1]

Hopefully the download reported the income that you asked about?

• the $10 Coinbase, 
• $10 XLM and 
• $11.32?

Were they all reported on IRS form 8949 / Schedule D?

In the online versions, you may view or print at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets after you have paid for the software.

In the Desktop versions, one can look at the tax return by clicking FORMS, or by viewing the PDF through the Print Center.

@jpech2005