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CRYPTO TAX LAWYER Explains: How to LEGALLY Avoid Crypto TaxesCryptocurrency that you have received through mining and/or staking rewards received by holding proof of stake coins is treated as ordinary income per IRS. When staking rewards hit your wallet, they are taxable income. Learn everything about how to handle staking crypto taxes in this guide. For the avoidance of any remaining doubt, the Ruling makes clear that crypto investors who are earning staking rewards are required to report these earnings as.