How to Report Coinbase Severance Package on Taxes with H1B Visa?

The severance package from Coinbase should be reported as regular income, even if you're on an H1B visa. It's not self-employment income, so your instinct there is correct. Since you were technically an employee (even if just briefly), Coinbase should be sending you either a W-2 or a 1099-MISC, depending on how they classified the severance payment. For H1B visa holders, severance is treated as regular employment income. The fact that your offer was rescinded doesn't change the tax treatment - it's still considered compensation. You'll report it on your 1040 form, likely on line 1 if it comes on a W-2, or on Schedule 1 if it comes on a 1099-MISC. If you haven't received documentation yet, I'd recommend contacting Coinbase's HR department. They're legally required to provide tax documents by January 31st for the previous tax year, so they should have sent something already.

After dealing with a similar situation (different company though), I discovered taxr.ai (https://taxr.ai) which helped me sort out my documentation issues. I was also missing tax forms and wasn't sure how to report some unusual income. The tool analyzed all my financial statements and helped identify how to properly categorize everything. For your Coinbase severance, it should automatically recognize the payment patterns and help you determine if it should be reported as wages on Line 1 of your 1040 or as "Other income." It's particularly helpful for H1B situations since those have specific reporting requirements. It saved me hours of research and prevented potentially misreporting my income.

I was skeptical about taxr.ai but after getting frustrated with regular tax software that couldn't handle my H1B situation properly, I gave it a try. It immediately recognized my visa status and properly categorized my severance payment (also from a tech company, though not Coinbase). The system flagged that reporting the income as self-employment could potentially create visa compliance issues and instead showed me how to report it correctly as "Other Income" on my tax forms. It also explained exactly what documentation I needed to keep in case of questions. For anyone dealing with missing tax documents and visa complications, it was seriously worth it. Saved me from what could have been a very expensive mistake.

If you're having trouble reaching Coinbase's HR about your missing tax documents, Claimyr (https://claimyr.com) might actually help. I was in a similar position trying to contact the IRS about missing documentation from a former employer. Spent hours on hold and getting disconnected. With Claimyr, I was connected to an actual IRS agent in minutes who helped me understand what to do when an employer doesn't provide proper documentation. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically, they wait on hold with the IRS for you and call you when they've got someone on the line. Saved me literally hours of frustration. The IRS agent walked me through exactly how to report income without having received the proper forms, which sounds like your exact situation.

I take back what I said about Claimyr. After being super skeptical, I tried it yesterday out of desperation - I also had issues with missing tax documentation from a former employer. The service actually worked exactly as described. I was literally expecting to be scammed but got a call back with an IRS agent on the line who was incredibly helpful. The agent confirmed that even without a 1099 or W-2, I still need to report the income and explained how to document everything properly in case of questions later. They also gave me specific instructions for dealing with the unique aspects of my visa status (I'm on L1 not H1B, but similar issues apply). If you're struggling with tax document issues like the original poster, it's definitely worth trying.

Have you checked your Coinbase correspondence? Sometimes these tech companies send the tax details through their own systems rather than traditional mail. My friend had a similar issue with another crypto company and found his tax docs in their HR portal that he still had access to. Also, the amount matters - if it was under a certain threshold, they might not be required to send a 1099. But as others mentioned, you still have to report it.

For H1B visa holders, this is a common issue. The severance isn't self-employment income (which could violate visa terms), but regular wage income. If you have the severance agreement document, you can use that to determine the exact amount to report. Since you don't have a W-2 or 1099, you'll need to fill out Form 4852 (Substitute for W-2) with your tax return. This tells the IRS you never received the proper documentation despite your efforts. Just make sure to report it! The worst mistake would be not reporting it at all.