The IRS has explicitly communicated that all airdrops, forks, mining coins, or staking coins are income at the time of receipt. It's also true that traditional credit card companies pay out cash back rewards and don't issue 1099s for those (essentially declaring that they aren't income). So should these rewards be taxed?
- How do I use the Income Report? (Coming Soon)
Because of this being a grey area, we've determined the best option for our users is to approach this conservatively and report these transcations as income.
TaxBit does believe there is an argument here for why these rewards may not be taxable, but we want to be sure we are advising our users in the best way to proceed with the least risk of being audited. If you would prefer to report these transactions as not taxable, then we can help walk you through converting these income transactions into non taxable transactions. Please reach out to the support team if you would like to adjust the transaction types into non-taxable transactions and we will assist you further.
Have additional questions? Feel free to check out articles from the rest of our knowledge base!
Still, have questions? Please reach out to us directly using the in-app Support widget in the bottom-right of your screen, or email email@example.com and we'd love to help you out!