How Do I Enter Cryptocurrency In Turbotax – Figuring out how to accurately report cryptocurrency taxes in TurboTax can seem like a complicated task at first. In this comprehensive guide, we’ll explain everything you need to know about filing crypto taxes in TurboTax, including step-by-step tutorials updated for 2023.
Yes, you can file crypto taxes with TurboTax. TurboTax integrates various crypto media to facilitate accurate reporting of crypto transactions. This includes selling, buying, pledging, and other crypto-related transactions. You can directly enter your crypto transaction details or enter them manually depending on your preference.
How Do I Enter Cryptocurrency In Turbotax
However, it is important to know that TurboTax only supports a few crypto exchanges and platforms today, and many crypto investors may not have the necessary functionality to accurately report their taxes. If you only do regular transactions on exchanges like Coinbase or Gemini, TurboTax will work for you, but if you use exchanges outside of the US and need to enter transactions from cryptocurrency wallets, you’ll quickly notice the limitations. “I got you into NFT or DeFi.
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For these reasons, TurboTax has partnered to provide a powerful yet easy-to-use crypto tax reporting tool that allows even the most sophisticated and sophisticated crypto enthusiasts to file taxes from over 800+ exchanges, blockchains and wallets – completely stress-free.
Yes, you can import your crypto transactions into TurboTax. This process is made easier by TurboTax’s integration with various crypto exchanges, allowing you to import your business information directly into TurboTax.
But as we mentioned earlier, the integration supported by TurboTax is very limited, and entering your cryptographic inputs is time-consuming and not a practical solution for most people.
However, it can be helped. You just need to connect your Exchange accounts and wallets and TurboTax will automatically generate a CSV file that you can upload to TurboTax.
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These are all the necessary steps to report cryptocurrency gains and losses using the online version of TurboTax as of July 2023:
Before you can begin reporting crypto in TurboTax, you must complete the initial account setup and configuration, if you have not done so previously. Don’t worry—TurboTax will guide you through the entire process, which only takes a few minutes.
Start by checking the “I have sold stocks, crypto or personal rental property” text box and click the button below to proceed to the next step.
Expand the “Federal” menu on the left, then click “Wages and Earnings” to open the Earnings page. Next, click on the “Add to my income” button.
How To File Crypto Taxes With Turbotax (step By Step)
If you’ve used TurboTax before, you may see the screen below instead. Click “Get Started” next to “Investments and Savings” to open the Cryptocurrency module in TurboTax.
When asked about investment income in 2022, select “Yes” to open the page to upload your crypto trade. If you have a crypto loss in 2022, remember to do the same because the profit and loss are reported on the same page.
As mentioned, TurboTax integration is limited to certain cryptographic platforms, so you’ll need to click “Enter another way” to upload a single file with all your transactions. This is necessary because TurboTax cannot properly track your expense base without a complete transaction history.
On this page, select ‘Cryptographic Services’ from the drop-down list and enter ‘ in the Name field below. Under CSV Type, select the first option, ‘Gain/Loss or 1099-B’.
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Go to your account, go to “Tax Reports” in the main navigation, and then select the year for which you are reporting taxes.
In the Tax Reports panel, select ‘Tax File Software’ and then click ‘Generate’ to export the TurboTax Online file. You can now upload the CSV file to TurboTax.
If you haven’t prepared your TurboTax CSV file yet, now is a great time to do so! Start by creating a free account, connect all your exchange accounts and wallets, and your crypto tax returns will be ready in less than 20 minutes.
After uploading the file, you will see the screen below with the text “Review Required” in red. Click View to open the View page.
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The summary page in TurboTax allows you to choose which transactions are considered capital gains or capital loss transactions for tax purposes. Since the exported file contains only the taxable transactions of the previous period, you should not make any changes to it.
Congratulations – you’ve completed all the necessary steps to report crypto taxes in TurboTax! You will now see a summary of your total profit (or loss) under ”.
Although cryptocurrency taxes can be intimidating at first, we hope that you will understand that after following these step-by-step instructions on reporting cryptocurrency in TurboTax, it is not so difficult when you do it with help.
You can also report your cryptocurrency gains, losses, and income using TurboTax Desktop instead of the online version. To do this, you need to export a TXF file with your transactions that can be uploaded to the TurboTax desktop program.
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The first step is to export the TXF file from You can do this by going to the “Tax Reports” page and selecting “Tax Filing Software” from the Tax Reports panel.
Although TurboTax does not have a direct integration specifically designed for reporting cryptocurrency income such as mining, staking or airdrops, you can also report cryptocurrency income in TurboTax. From today, taxable income from cryptographic articles must be entered on a separate page from the page where capital income is entered.
Go to the same page where you reported capital income and click on “Add more income” to see all the different types of income.
You can now enter your cryptocurrency income on the “Other Taxable Income” page. We recommend reporting all different cryptocurrency earnings separately. For example, if you receive staking prizes in 2022, you can enter the description “Cryptocurrency Staking Prize” and the total USD amount below.
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You can now view all crypto income entered into TurboTax. If you want to add different cryptographic incomes such as mining, staking and airdrops separately, you can click on ‘+ Add another income’ and repeat the previous step.
You can file your full tax return in section 7 and see a summary of all cryptocurrency income. Make sure the income reported in TurboTax matches the income on your tax return if you have no other income transactions entered into your account.
Capital losses must be reported in the same manner as capital gains in TurboTax’s “Investments and Savings” module. You can find this unit by logging into your TurboTax account and then going to “Wages and Earnings” under the “Federal” tab.
If you have lost the encryption code in 2022, you must follow the steps mentioned in the previous section. How to enter coding in TurboTax Online. When entering cryptocurrency into TurboTax, both cryptocurrency gains and losses are reported together.
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Remember, it’s important to accurately document losses because they can offset other capital gains you made during the year and reduce your taxable income. If the loss exceeds the annual limits set by the IRS, you may also be able to carry some of that loss forward to the next tax year.
Yes, TurboTax supports direct import of tax data from Robinhood through the crypto platform’s integration features. Do not forget to enter trades from all other exchanges and wallets that you have used in the past to accurately calculate your crypto profit and loss.
Let’s say you buy 1 BTC from Kraken in 2022. Then in 2023, you decide to transfer 1 BTC to Robinhood and sell the coins after some time. After the sale, Robinhood does not know how much you paid (the purchase price) for the 1 BTC you previously bought on Kraken. So Robinhood assumes a zero value, which leads to capital gains and you paying more tax than you should.
This example shows the importance of using a crypto tax platform because it collects all your transaction history from more than 800+ exchanges, blockchains and wallets and ensures that you don’t pay more tax than necessary.
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No, TurboTax is not directly integrated with Binance as of July 2023. If you traded cryptocurrency on Binance, you can instead use the Crypto Tax Calculator to create a CSV file with your profit and loss that you can upload to TurboTax.
If you’re looking for the best crypto tax software to use with TurboTax, you should consider the following five criteria:
It is one of the most popular crypto tax solutions today and meets all of the above criteria. TurboTax has full integration with both the online and desktop versions, making it one of the best options for anyone who needs to report their crypto transactions in TurboTax.
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