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Received 1099-Misc for airdrop income. I described the airdrop in step-by-step, but Sch 1 Line 8z only says "income on 1099-Misc. Cant override. Is this enough for IRS?

 
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2 Replies
ThomasM125
Expert Alumni

Received 1099-Misc for airdrop income. I described the airdrop in step-by-step, but Sch 1 Line 8z only says "income on 1099-Misc. Cant override. Is this enough for IRS?

Yes, the airdrop of crypto currency is ordinary income and as such it would show up as you describe on schedule 1.

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Received 1099-Misc for airdrop income. I described the airdrop in step-by-step, but Sch 1 Line 8z only says "income on 1099-Misc. Cant override. Is this enough for IRS?

Thank you but space limited my ability to ask the full question. My concern is there is no information on Schedule 1 indicating this is a crypto airdrop, even though I described it as such in the Step-by-step, including name of the company. I'm aware it's ordinary income, but I'm concerned the description is so vague the IRS could flag this and scrutinize it for possible self-employment compensation, which is subject to additional 15.3% tax. I tried overriding the description in Line 8z, but TT says override is not allowed for e-filing. Am I over-worrying this?

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