Staking rewards are earned when an individual stakes certain crypto to help validate transactions and support blockchain security. Rewards are often given in the same crypto you staked or in another reward crypto for both liquid and illiquid staking.
CoinTracker automatically categorizes staking rewards transactions for most wallets. You can also manually apply the staking rewards category to Received transactions.
If you’re importing your transaction history using the CoinTracker CSV, learn how to properly tag staking rewards and more.
Set staking rewards as non-taxable
You can choose to treat staking rewards as non-taxable in your CoinTracker tax settings. We recommend consulting a tax professional before changing your tax settings, as tax implications can be complex and vary by country and other factors.
When treated as non-taxable:
- The transactions will not be included in your income calculations for tax years after the effective start date.
- Received transactions tagged as staking rewards will be assigned a cost basis of 0.
How to update your tax settings
- Navigate to the Settings page.
- Select the Tax tab.
- Toggle on Treat staking rewards as non-taxable.
- Select a start date.
- Select an end date (optional), then click Next.
- Review your selection and click Confirm & save to complete this process.
To turn off this setting, toggle it off.
For US customers
- For more detailed staking tax guidance, refer to our Crypto Staking Tax Guide.
- CoinTracker’s default treatment aligns with IRS guidance in Rev. Rul. 2013-14.
- When you sell staking rewards, report capital gains on Form 8949 and Schedule D.
Handling the display of staking rewards
You can hide or unhide staking reward transactions from your transaction history:
- Navigate to the Transactions page.
- Click Display.
- Toggle Hide staking rewards to hide these transactions.
To unhide them, toggle it off.