Withdrawals from Blockfi savings account

Forum|Forum|3 years ago
March 26, 2023
1 reply
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I earned about $200 worth of interest income in the form of GUSD, a stable coin (cryptocurrency) with the Blockfi savings account in 2022. Since the interest amount was <$600, Blockfi did not issue 1099-Misc. I did not have any other crypto gains in 2022, only the interest from the funds parked in Blockfi savings account.

Late in 2022, I withdrew all of my parked funds from Blockfi GUSD to my bank account USD. I received 1099-B from Blockfi with cost basis same as proceeds for all of my parked funds including interest income. This makes sense as there were no additional gains from the account.

Three questions:

1. I should report interest income as 'Miscellaneous Income' in the 'Less common Income' section, correct?

2. Since I received 1099-B, I enter the short term and long term proceeds and cost basis as specified in the 1099-B. And this goes in as 'Stocks, Bonds, Others' in the 'Investment Income' section, correct? Proceeds and cost basis are same value as they were withdrawals.

3. Anything has to be physically mailed to the IRS regarding these crypto withdrawals/interest?

@JohnB5677

Best answer by JohnB5677

1. I should report interest income as 'Miscellaneous Income' in the 'Less common Income' section, correct?

Although you didn't get a 1099-INT, report the interest in the 1099-INT section.
To manually post a 1099-INT
- Select Federal
- Wages & Income
- Scroll to Investments & Savings and
- select Show More,
- Start or Revisit next to Interest on 1099-INT - Okay!
- Time to kick off your investments!
- Yes, on the screen Did you receive any interest income? then Continue.
- If you see the screen Your investments & savings or Here's your 1099-INT info, select.
- Add investments or add another 1099-INT, then Continue.
- Choose how you'd like to enter your 1099-DIV:
- If you'd rather manually enter your form, select.
  - Change how I enter my form, select.
  - 1099-INT, then
  - Type it in myself on the following screen.
  - Follow the on-screen instructions to enter the info from your 1099-INT.

Yes, it goes in the investment income section.

Proceeds and cost basis are same value as they were withdrawals.

If that is what correctly identifies the transaction, yes, cost basis is as reported, and withdrawals will equal proceeds.

3. Anything has to be physically mailed to the IRS regarding these crypto withdrawals/interest?

Nothing has to be mailed for the interest. If you entered the withdrawal as an individual transaction, nothing has to be mailed there either.

Reminder: When you're in TurboTax, and you're not sure of something, select the (?) next to the topic for more details.

If this does not completely answer your question, please contact us again and provide some additional details.

JohnB5677Answer

Level 15

1. I should report interest income as 'Miscellaneous Income' in the 'Less common Income' section, correct?

Although you didn't get a 1099-INT, report the interest in the 1099-INT section.
To manually post a 1099-INT
- Select Federal
- Wages & Income
- Scroll to Investments & Savings and
- select Show More,
- Start or Revisit next to Interest on 1099-INT - Okay!
- Time to kick off your investments!
- Yes, on the screen Did you receive any interest income? then Continue.
- If you see the screen Your investments & savings or Here's your 1099-INT info, select.
- Add investments or add another 1099-INT, then Continue.
- Choose how you'd like to enter your 1099-DIV:
- If you'd rather manually enter your form, select.
  - Change how I enter my form, select.
  - 1099-INT, then
  - Type it in myself on the following screen.
  - Follow the on-screen instructions to enter the info from your 1099-INT.