As we approach the end of December 2025, the tax situation for U.S. stakers has shifted from "gray area" to "high readiness." As a trader, your net profit is not what the exchange says, but what you keep after Uncle Sam takes his share. 📉
⚖️ The rule of "Authority and Control"
According to the Income Resolution 2023-14, the IRS remains steadfast: staking rewards are taxed as ordinary income at the moment you have "control and dominion" over them. With the new Form 1099-DA, which is now active for the 2025 tax year, major exchanges report these rewards directly to the government. 🚨
📊 Staking Rewards vs. Tax Burden
* Ethereum (ETH): Trading at $3,049. If you earned 1 ETH in staking rewards today, you must pay income tax on that $3,049 immediately, regardless of whether you sell or the price drops to $2,000 tomorrow. 💎
* Solana (SOL): Currently at $122. With high nominal income, the tax "burden" on SOL is significant. If you don't set aside 20-37% of your rewards for the IRS, you are effectively trading on margin against the government. 🛡️
* Bitcoin (BTC): Hold on tight at $89,774. Although BTC is not proof of stake, the tax treatment of its "income" (e.g., WBTC loans) reflects the headache of staking. 🚀
Trader's Movement: Track your "cost basis" daily. In a volatile market, your tax liability can easily exceed your liquid assets if you're not careful. Be mindful, adhere to the norms.
Would you like me to prepare a spreadsheet template to help you track your daily cost basis for staking?
