The APY you earn with Donut can be considered interest income and is taxable. Donut earnings are likely considered interest income and not capital gains. However, your tax advisor will know best about how to accurately report your earnings if you're stuck.
Please note that it is your obligation to report income earned from Donut to the IRS. We've made this easy to do.
If you're filing Form 1040, follow these steps:
Go to Settings
Select Account Statements
Select Tax Summary
Generate your CSV file by pressing Get CSV File
Add your interest earned to Schedule B of Form 1040
Complete the rest of your taxes!
If you're not filing a Form 1040, or have a more complicated tax case, share the CSV file you generated with your tax advisor.
Here’s some information that your tax advisor might find helpful:
To our knowledge, the IRS has not issued any guidance as to whether this type of activity must fulfill international reporting requirements such as FinCEN or FBAR.
As you’re depositing and withdrawing in USD only, your Donut earnings shouldn't be taxable as capital gains.
Detailed Account Statements are available if needed and can act as a suitable replacement for a 1099-INT. To get these, go to Settings, Account Statements, choose last year, download, and share.
Tax Summary is a downloadable CSV file that you can use to help file your taxes. It has all the important bits of information needed for self filing and/or providing your tax advisor.
Donut’s Address is Donut, Inc., 6121 Sunset Boulevard, Los Angeles, CA 90028, United States
Donut’s Tax Identification Number (TIN) is: 61-1929355
If you're stuck, chat with us in-app or drop us an e-mail at [email protected]. Our team is always happy to help, but unfortunately can't give specific tax advice.