How should I treat my Proof of Stake (PoS) rewards on my tax return?

Asked by: Marcos Osborne

How do I report staking rewards on taxes?


Quote from video: If you're an individual taxpayer. You'll report your staking income on form 1040 schedule 1 as other income. Remember selling or trading away your staking rewards.

Do you have to claim staking rewards on taxes?

The IRS can still continue to take the position that staking rewards are taxable on receipt. Moreover, even if the IRS ultimately agrees that Jarrett’s staking rewards are not taxable on receipt, that does not mean that all staking rewards will not be taxable on receipt.

Are staking rewards considered income?

On Feb. 2, the IRS conceded a lawsuit filed by Joshua and Jessica Jarrett concerning the taxability of staking rewards for cryptocurrencies.

Are cardano staking rewards taxable?

Staking income is NOT taxed at the time of receipt; it will be taxed only at the time of sale.

How do I enter staking rewards on TurboTax?

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.

Do I need to pay taxes on crypto rewards?

Yes, your Bitcoin, Ethereum, and other cryptocurrencies are taxable. The IRS considers cryptocurrency holdings to be “property” for tax purposes, which means your virtual currency is taxed in the same way as any other assets you own, like stocks or gold.