Disclaimer: BlockFi does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide--and should not be relied on for—tax, legal, or accounting advice. You should always consult your own tax, legal, and accounting advisors before engaging in any transaction.
If you’re a US taxpayer with reportable income, you may get two separate reports related to your BlockFi Interest Account (BIA) and any trading activity in 2021.
Below is an overview for different products and services on BlockFi.
Per the IRS, earning interest, bonus, or other income in crypto is considered a taxable event in the US, and cryptoassets are generally treated as property for tax purposes (similar to gold or shares in publicly-owned companies). That means BlockFi’s interest payments to you on cryptoassets, if applicable, are payments of property, making them subject to reporting through the 1099-Miscellaneous form (also known as 1099-MISC). Please note, only US taxpayers who have earned more than $600.00 USD of interest and/or bonuses in 2021 will have a 1099-MISC form, which will be available for download by January 31, 2022.
Credit Card Rewards
BlockFi credit card rewards are treated as rebates and are not taxable. While the rewards on the credit card would not be treated as income at time of payment, fluctuations in value may have tax implications. Once rewards are paid out on the credit card, BlockFi will track the cost basis for you. Any future trading activity you conduct that includes the BlockFi credit card rewards may generate capital gains/losses that could be taxable. We recommend you consult with a tax advisor with any questions regarding taxes to get a full understanding of the tax implications related to credit card rewards.
US taxpayers who have traded during 2021 will receive a 1099-B form to report transactions. This report will be made available for download by February 15, 2022.
For non-US clients, please view your transaction history and historical monthly interest statements for necessary details.
Free TaxBit Account
All BlockFi clients will get a free TaxBit Network account to generate a Form 8949, which will reconcile to their 1099-B from BlockFi (especially helpful if trading activity across multiple crypto exchanges).
How to Get Your Forms
To download your official tax forms:
Log in to your BlockFi account using the web application (note: reports are not available in the mobile app)
Open your Profile options from the navigation menu
In the ‘Reports’ screen, go to the ‘Taxes’ section
Select ‘2021’ as the tax year
From there, you’ll be able to access the relevant documents and use them to prepare your taxes.
As always, clients should consult with their tax advisors for information relating to their specific facts and circumstances. For questions on BlockFi products and services, please feel free to contact us