#USCryptoStakingTaxReview

• Staking rewards are taxable income under IRS Revenue Ruling 2023-14.

• You owe ordinary income tax when you gain dominion and control over the rewards (i.e., when you can sell or transfer them).

• Fair market value at receipt is the taxable amount.

• Later, when you sell or trade those tokens, you may owe capital gains tax (using the receipt value as your cost basis).

• Most individuals report rewards as “Other Income” on Form 1040 Schedule 1; validators or businesses may use Schedule C.

• Locked or unwithdrawable rewards are generally not taxable until unlocked.

• Record-keeping is essential (dates, values, amounts).

• Expanded IRS broker reporting (Form 1099-DA) is rolling out for digital assets starting with 2025 activity (reported in 2026), increasing enforcement visibility.

Bottom line: In the U.S., staking rewards are taxed as income when you can control them, and again as capital gains when you dispose of them.