Where do I report crypto staking rewards?

[yellowwidget]

This is not airdrop.  I see everyone in other questions lumping staking in with airdrops.  I understand airdrops might not be usable immediately but staking rewards are available as soon as you get them.  Where do you report this in TurboTax?

[HelenC12 · Accepted solution]

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. 

[ptmike111]

Awesome answer!

I've been searching for this answer, thanks so much!

[Taxhawk]

But that screen specifically states, "Do not enter income reported on Form 1099-MISC."

[Taxhawk]

All of my staking reward are reported on (3) Forms 1099-MISC, box 3.

[joshh0]

I have received a couple 1099-MISC forms from exchanges that have given me staking rewards. I have not converted these coins back into US Dollars yet, however since I received a 1099 with the apparent value of the coins when I received them (?), I suppose I need to report and pay tax on them now...?  Even though I haven't converted to USD, or otherwise sold or disposed of these rewards.??

[AmyC]

The staking rewards are similar to dividends and taxable once you have the ability to sell, transfer, or exchange them. See What’s the difference between staking, crypto mining, and airdrops? Additionally, if you have a foreign wallet, that is considered a foreign asset and may require filing Form 8938. See About Form 8938, Statement of Specified Foreign Financial Assets

Follow these steps to enter:

1. Go to federal
2. Income and expenses
3. Less Common Income
4. Miscellaneous Income
   • Other income not already reported on W-2 
5. Other wages received 
6. Wages earned as a Household Employee > Leave Blank
7. Sick or Disability pay > Leave Blank
8. Any Other Earned Income > Yes
9. Enter Source of Other Income > Other
10. Enter the description and amount

@joshh0

@Taxhawk

[HillsideBruce]

Wanted to open a new thread, but didn't see the option... 

I have staked ETH, and it shows up on in Ledger Live as STETH (staking via Lido)... The amount of STETH I have goes up, as I do a weekly portfolio thang and know the amount goes up... I do not see STETH staking rewards transactions in Ledger Live... Research has shown that STETH which is considered liquid staking has a staking reward that accrues daily... My question is how do I report this on my taxes?  I have no transaction history to show me the daily amount, let alone possibly just reporting the value on Dec 31 and compare that with its value at the beginning of the year (there doesn't seem to be a way to get the value on a particular day/historic values)... I am hoping that maybe, just maybe I am not the only person preparing taxes who has staked ETH and is also wondering, OR already figured out - how to report on taxes STETH staking rewards...

[ee-ea]

https://ttlc.intuit.com/community/events/eb-p/501

[HillsideBruce]

Found the answer to my question... Not sure why I didn't find this earlier... The web page listed below can be used to see all the STETH staking rewards that have been added to the STETH account... Just need your ethernet address (and pretty easy to get that info with Ledger Live)... and it even has a download CSV file option... SWEET!!  Moving forward to hopefully the last obstacle in the way of completion of my 2022 taxes... 2022 tax preparation - what a long, strange trip it's been (GrateFul Dead)...

[lulukern123]

This link is not working. Did you move out the article somewhere else?

[JUNIORCRUZ193]

Does this rule still apply this year? I just want to make sure because  I have earned staking rewards but haven't sold the crypto nor converted it to US dollars. 

[JamesG1]

The posting of @HelenC12 above is still in force.  It states:

     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. 

In TurboTax Online report the income as follows:

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click the down arrow to the right of Less Common Income.
• Click to the right of Miscellaneous Income, 1099-A, 1099-C.
• Click to the right of Other reportable income.
• 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.

@JUNIORCRUZ193