#USCryptoStakingTaxReview
US Crypto Staking Tax Review
In the United States, the Internal Revenue Service (IRS) maintains a firm stance on the taxation of digital assets. According to Revenue Ruling 2023-14, staking rewards are treated as ordinary income, not as capital gains at the time of receipt. This means that a taxpayer must report the Fair Market Value (FMV) of the rewards in U.S. dollars at the precise moment they gain "dominion and control" over the assets—essentially when the tokens become transferable or spendable.
This "receipt-based" taxation creates a two-tiered tax obligation. First, the income is taxed at standard rates (ranging from 10% to 37%). Second, if the tokens are later sold or swapped, a capital gains tax is triggered based on the change in value from the initial reporting price.
Critics of the current #USCryptoStakingTaxReview argue that taxing tokens upon receipt, rather than upon sale, creates a "dry income" problem, forcing some investors to sell assets just to cover tax liabilities. However, as of late 2025, the IRS continues to enforce these rules strictly, requiring detailed record-keeping and reporting on Form 1040, Schedule 1. For investors, staying compliant requires automated tracking tools to account for the frequent, often daily, distribution of rewards .common in Proof-of-Stake network
