Do I need to enter cryptocurrency rewards or earnings even if I didn't receive a Form 1099-MISC?
Yes, the IRS requires that you report cryptocurrency rewards or earnings even if you don't receive a Form 1099-MISC or Form 1099-NEC. Companies are not required to send you a Form 1099-MISC or Form 1099-NEC unless the income is $600 or more.
Rewards, sometimes called airdrops, are usually reported as digital asset income on the Other Sources of Income screen using the fair market value at the time you received the cryptocurrency. Where earnings are entered depends on if they're wages or income from self-employment. See Where do I enter Cryptocurrency? for more information.
Example: You receive $10 worth of bitcoin as a reward for opening a new wallet. You would enter the $10 on your tax return as digital asset income and it would be taxed as ordinary income.
Example: You're self-employed as a consultant. One of your clients pays you in cryptocurrency worth $500. You would report the $500 fair market value of the cryptocurrency at the time you received it as self-employment income.
Example: You're an employee. Your employer gives you a bonus worth $200 in cryptocurrency. You should receive a Form W-2 from your employer including the bonus.
Rewards, sometimes called airdrops, are usually reported as digital asset income on the Other Sources of Income screen using the fair market value at the time you received the cryptocurrency. Where earnings are entered depends on if they're wages or income from self-employment. See Where do I enter Cryptocurrency? for more information.
Example: You receive $10 worth of bitcoin as a reward for opening a new wallet. You would enter the $10 on your tax return as digital asset income and it would be taxed as ordinary income.
Example: You're self-employed as a consultant. One of your clients pays you in cryptocurrency worth $500. You would report the $500 fair market value of the cryptocurrency at the time you received it as self-employment income.
Example: You're an employee. Your employer gives you a bonus worth $200 in cryptocurrency. You should receive a Form W-2 from your employer including the bonus.
