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April 18, 2022
Question

I received 2 1099-misc from Celsius for crypto rewards. I haven't sold the crypto gains but I'm being taxed around 23% on it. Is that right?

  • April 18, 2022
  • 1 reply
  • 0 views
Turbo tax seems to only want to accept 1099-B for inputting crypto. Not sure why Celsius sent 1099-misc, so I had to enter it under other income and it seems to be taxing me self employment tax on it. As I said, this is not even a realized gain.

1 reply

ColeenD3
April 18, 2022

In general, the way to avoid SE tax on 1099-MISC, follow these steps. However, your crypto sales should really be reported in the Investment section.

 

To enter a 1099-MISC for miscellaneous income in TurboTax:

  1. Open or continue your return
  2. Search for 1099-misc and select the Jump-to link

 

  1. Answer Yes to Did you get a 1099-MISC?
    • If you already entered a 1099-MISC, you'll be on the 1099-MISC Summary screen, in which case you'll select Add Another 1099-MISC
    • If you need to edit or delete a previously entered 1099-MISC, select the appropriate button

To exclude it as business income, say NO to the questions regarding the intent to earn money and that it involved work like your main job.