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. For more information on reporting earnings on Donut, click here.
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.