Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Apr 15, 2022 7:57:36 AM

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?

0 2 494
2 Replies
Expert Alumni
Apr 15, 2022 8:17:18 AM

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

Level 2
Apr 15, 2022 9:02:05 AM

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?