Coinbase Earn Rewards from learning and tax reporting

In 2020, I earned rewards from Coinbase while learning about the different types of cryptos on the platform. I have not sold any of these earned rewards and still have them in my Coinbase wallets.

CoinTracker successfully imported all of my Coinbase transactions. In the CoinTracker Tax Center area, it shows that I have some Taxable Income. It’s the total rewards I earned from Coinbase. When I generate any of the tax reports like TurboTax Online File or Capital Gains CSV, the report is empty for me. Is this because I have not traded or sold any of my reward holdings? What report do I run if I only have earned rewards transactions?

Hope to hear from you and thank you!

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To preface my response, I am a new CoinTracker user and do not have a tax plan. So I’m unfamiliar with the forms that are available to generate via the tax center.

However, according to various things I’ve read, the crypto you earned through Coinbase Earn is actually counted as taxable income. This is separate from crypto sales which is probably why it isn’t reflected in the tax reports you have viewed. From my experience these transactions are tagged as “Payment” and the total should be shown in the “Taxable Income” section of the tax center. I think the proper way to handle this is to report this income as miscellaneous income (1099-MISC).

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dro - you may be new here but I thank you for sharing what you have learned from the various things you have read. Your explanation was presented clearly. Thank you.

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Thank you dro,

You and others I talked with all recommended the same solution. A 1099-MISC is exactly what I need to fill out to report the crypto I earned from Coinbase Earn. The rewards should be treated as taxable income. I did not earn $600 or more from Coinbase so they do not send out a 1099-MISC. I have to fill one out myself.

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