DeFi Taxes: Step-by-Step Reporting Guide for 2026
TL;DR: DeFi income — staking rewards, yield farming payouts, LP fees, lending interest, and airdrops — is taxable as ordinary income at fair market value when received. Report it on Schedule 1 of your Form 1040. Every subsequent swap or sale triggers a capital gain or loss on Form 8949. Use crypto tax software to automate the tracking, … Read more