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How Are Customized Rewards (USDG, USDC, etc.) Treated for Tax and Accounting?

More detailed tax notes, including reporting responsibility and 1099 limitations.

Written by CopyCat

Note: Customized rewards are not included in the in-app Staking Rewards Report. Use your wallet's transaction history or Solscan to compile your records.

Marinade cannot provide tax advice, cannot issue Form 1099 or any other tax reporting forms (even for users based in the United States), and is not responsible for determining or meeting your tax obligations. Working out how your rewards are taxed is your responsibility.

In many jurisdictions (this is general information, not advice):

  • Staking rewards – whether paid in SOL, USDG, or any other token – may be treated as taxable income when you receive them.

  • Because USDG is a dollar-pegged asset, some users find it easier to:

    • Track the value of each reward at the time of receipt (for example, $X per epoch), and

    • Keep more consistent records versus dealing with a highly volatile reward token.

Good practices often include:

  • Keeping exported transaction histories from your wallet and a Solana explorer such as Solscan.

  • Using a third-party crypto tax tool if it helps you categorize staking rewards and swaps. Marinade does not endorse or recommend any specific tool, since how well one fits depends on your situation.

  • Recording dates, token amounts, and approximate USD values of rewards when they are credited to your wallet.

However, tax rules vary widely by country and can change over time. You should always consult a qualified tax professional or accountant in your jurisdiction.

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