How do I report a crypto airdrop?
by TurboTax• Updated 1 week ago
Cryptocurrency airdrops are (usually) free distributions of coins or tokens into multiple wallet addresses to promote and drive adoption of a new virtual currency.
According to the IRS, airdrops (along with promos and staking rewards) only become taxable once the taxpayer acquires the ability to transfer, sell, exchange, or otherwise dispose of the cryptocurrency. Airdropped currency that isn't yet usable or accessible isn't taxable until the taxpayer can exercise control over it.
If you can access your crypto airdrop, follow these steps to report it in TurboTax.
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