#USCryptoStakingTaxReview
If you’re earning rewards from staking crypto in the U.S., the IRS has made its stance clear: those rewards are not tax-free — even if you don’t sell them. 📊 �
🔍 Here’s the tax reality:
💰 Taxable Event:
Staking rewards are treated as ordinary income the moment you gain dominion and control — meaning you can sell, transfer, or use the tokens. This isn’t when the network generates the reward, but when you actually control it. �
📅 When Do You Report?
Include the fair market value (FMV) of your staking rewards in USD the tax year you receive them — even if you never sell. �
📊 Forms & Reporting:
Most staking income goes on Form 1040 Schedule 1 as “Other Income.” Exchanges may issue tax forms (like 1099-MISC) for rewards over $600 — but you’re responsible for reporting every reward, regardless of size. �
Forbes
💼 Bonus Tip:
When you later sell those same tokens, you must report capital gains or losses based on the difference between the FMV when you received them vs. the sale price. �
Coincub
⚠️ Why This Matters:
Crypto auditors and software are getting better at spotting unreported staking income — failing to include it can lead to penalties and audits. Record keeping is key! 🔐 �
countdefi.com
💡 Bottom Line:
Staking can be great passive income — but Uncle Sam wants his share before you even cash out. Stay compliant, track every reward, and consult a tax pro if staking is a big part of your portfolio.
