Close Menu
    Facebook LinkedIn YouTube Instagram X (Twitter)
    Blue Tech Wave Media
    Facebook LinkedIn YouTube Instagram X (Twitter)
    • Home
    • Leadership Alliance
    • Exclusives
    • Internet Governance
      • Regulation
      • Governance Bodies
      • Emerging Tech
    • IT Infrastructure
      • Networking
      • Cloud
      • Data Centres
    • Company Stories
      • Profiles
      • Startups
      • Tech Titans
      • Partner Content
    • Others
      • Fintech
        • Blockchain
        • Payments
        • Regulation
      • Tech Trends
        • AI
        • AR/VR
        • IoT
      • Video / Podcast
    Blue Tech Wave Media
    Home » IRS confirms that crypto staking tokens are taxable income
    cryptocurrency
    Fintech

    IRS confirms that crypto staking tokens are taxable income

    By Fiona XuDecember 24, 2024No Comments2 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email
    • The IRS claims that tokens from crypto staking are taxable, opposing investor Joshua Jarrett’s argument that they are new property.
    • This case will significantly affect US crypto users and highlights broader changes in crypto tax policy.

    What happened: IRS rules on taxability of staking tokens

    The IRS has declared that tokens received from crypto staking are taxable, countering a lawsuit from Tennessee investor Joshua Jarrett. Earlier this year, Jarrett won a favourable settlement from a 2022 case, but the IRS is prepared to contest this new challenge. Jarrett argues that tokens earned from staking should be considered new property rather than taxable income.

    He is seeking a refund of £3,293 in taxes on 8,876 Tezos tokens acquired through staking. While his previous lawsuit resulted in a win, it did not set a binding precedent. In response to the burgeoning popularity of staking, the IRS issued Revenue Ruling 2023-14, asserting that staking rewards are part of a taxpayer’s gross income. As Jarrett files another lawsuit, the IRS is gearing up for a significant legal battle.

    Also read: Virginia man convicted of using cryptocurrency to fund ISIS
    Also read: Italy eases planned tax hike on cryptocurrency gains

    Why it is important

    This case highlights the evolving landscape of cryptocurrency regulation and the critical role tax agencies are playing in shaping it. As staking gains traction among US crypto users, the outcome will have far-reaching implications for how rewards are taxed.

    In 2023, the IRS has made substantial changes to its crypto policies, including the introduction of new forms for reporting gains and the employment of industry experts to combat tax evasion. This heightened scrutiny reflects a broader trend among tax authorities worldwide as they grapple with the complexities of digital currencies.

    If Jarrett’s argument prevails, it could set a precedent that benefits many crypto enthusiasts, potentially altering the IRS’s approach to staking. Conversely, a ruling against him could reinforce the agency’s position and discourage staking activities.

    As the crypto space continues to mature, understanding tax liabilities becomes increasingly essential for investors. This case not only affects Jarrett and the IRS but also serves as a bellwether for how cryptocurrencies will be treated in the future, making it a crucial development for anyone involved in the industry. With the stakes this high, the outcome of this legal dispute is keenly anticipated by a growing community of crypto advocates.

    IRS crypto taxation staking tokens
    Fiona Xu

    Fiona Xu is an intern reporter at BTW Media, having studied Media Management at Hong Kong Baptist University. She specialises in tech reporting and investigative journalism. Contact her at f.xu@btw.media.

    Related Posts

    The Mauritius internet battle: A warning for all small democracies

    August 13, 2025

    Rumble–Northern Data deal targets AI cloud growth

    August 13, 2025

    SETIC-FP drives Angola’s public finance digital transformation

    August 13, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    CATEGORIES
    Archives
    • August 2025
    • July 2025
    • June 2025
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • October 2024
    • September 2024
    • August 2024
    • July 2024
    • June 2024
    • May 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • October 2023
    • September 2023
    • August 2023
    • July 2023

    Blue Tech Wave (BTW.Media) is a future-facing tech media brand delivering sharp insights, trendspotting, and bold storytelling across digital, social, and video. We translate complexity into clarity—so you’re always ahead of the curve.

    BTW
    • About BTW
    • Contact Us
    • Join Our Team
    TERMS
    • Privacy Policy
    • Cookie Policy
    • Terms of Use
    Facebook X (Twitter) Instagram YouTube LinkedIn

    Type above and press Enter to search. Press Esc to cancel.