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In this guide, we’ll walk you through a step-by-step process for reporting your Bitcoins and cryptocurrencies to TurboTax both online and desktop.
Which Turbotax For Cryptocurrency
While TurboTax is one of the best tax platforms on the market, it is important to note that it was not created with cryptocurrencies in mind. As a result, it does not always have the necessary integrations and functions to facilitate crypto tax filing
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That’s why TurboTax has helped users add crypto transactions to all their wallets and exchanges and then import the relevant tax forms directly into their TurboTax account.
Go to TurboTax Online and select your package Both Premier and Self Employed support cryptocurrency tax filing Remember, you don’t have to pay until you file your tax return!
When you log in for the first time, TurboTax Online will ask you to complete some initial prompts and fill in your basic information. You will not be able to proceed with the application until this step is complete
Under Wages and Income, click Start/Edit the Investments and Savings section (where the Cryptocurrency section is located).
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Investment income includes income from crypto activities Even if you have a net loss in cryptocurrency, you must select ‘Yes’ Here you can report your loss
When reporting your cryptocurrency gains and losses, it’s important to aggregate data from all your wallets and exchanges. Otherwise, you may lose cost basis data that significantly increases your capital gains for the year
For this reason, you should not select any of the exchanges in this listed section Remember that your tax return is a consolidated report of all your profits and losses By selecting an exchange you can report the same transaction twice You must select the ‘Other way import’ option
From the drop down menu, select “Other”. Enter ‘Name’ and select the option labeled ‘Profit/Loss or 1099-B’
How Do I Import My Cryptocurrency Transactions Into Turbotax?
From your tax reporting dashboard, download the “Turbo Tax Online” file, then import it into Turbo Tax. This record consists of accumulated cryptocurrency gains and losses from your trading activity across all wallets and exchanges.
If you haven’t already prepared your tax return, now is the time to do so Simply create an account, connect your exchange and wallet, and generate the required crypto tax report with the click of a button.
After importing, TurboTax will prompt you to review the sales entered and select which transactions are subject to tax. It only includes taxable transactions in your report, so you just scroll through and continue
This is the end of the process! If you have completed all the above steps, you will be able to see the complete record of your crypto profits and losses
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Remember that the above process is designed to help you report your gains and losses If you have earned cryptocurrency, such as mining and staking rewards, you should report it separately.
TurboTax does not currently support the ability to directly report stocking and mining income You can report this type of income through the following process
The desktop version of TurboTax allows you to report your cryptocurrency gains, losses and income If you are using the desktop version of TurboTax, you will need to download a txf file of your cryptocurrency transactions instead of a csv.
For more information, see the Help Center article that describes the complete step-by-step process on how to file your taxes on the TurboTax desktop.
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However, it’s important to note that if you’ve ever moved your cryptocurrency between different wallets and exchanges, Coinbase’s reported capital gains may be inflated.
In this case, TurboTax will have trouble calculating your gains and losses because it doesn’t have the ability to track transfers between wallets and exchanges.
Fortunately, this can help Just connect your wallet and exchange and you can generate a complete crypto tax report with transactions from all your exchanges and wallets!
High Capability: Integrates with hundreds of exchanges and wallets like Coinbase, Kraken, and Gemini, and blockchains like Ethereum and Solana.
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Get the support you need: We know filing your taxes can be difficult If you need help at any time during use, our support team is ready and available to all our customers via email and live chat.
Enter your profits and losses with one click: After entering your crypto transaction history and generating your crypto tax report, you can import directly to TurboTax and other tax platforms with the click of a button.
If you have more than 4,000 transactions, it will automatically group your TurboTax Online file by asset type so you can access your transactions and file your taxes in TurboTax.
When you file a consolidated Form 8949 online, you must take an extra step and mail the completed 8949 to the IRS. For more detailed instructions, see our guide to mailing your IRS 8949
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Miles Brooks holds a Master’s Degree in Taxation, is a Chartered Accountant and Director of Tax Strategy.
We have strict sourcing guidelines for content Our content is based on direct interviews with tax experts, guidance from tax authorities and articles from reputable media.
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Yes, TurboTax Premier supports cryptocurrency transactions and, when combined, simplifies complex cryptocurrency tax filings. This article will explain how to declare cryptocurrency in Turbo Tax
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Users can easily import their crypto tax documents into TurboTax Crypto Below you will find step by step instructions to enter Encrypt Form 8949 from TurboTax.
If you’re looking for instructions for the CD/Download/Desktop version of TurboTax, you’ll find them under the Web Instructions
Go to the Documents tab of your dashboard Click the “Generate Report” button on the right side of the screen You will then see a list of reports that you are generating Search for “Form 8949 TurboTax CSV” and click “Generate Report”. Your report will appear in your Downloads folder
Create or sign in to a TurboTax Premier account, then start the TurboTax import process Select “I have sold or traded cryptocurrencies” on the page titled “Getting an idea of your financial situation”.
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After entering your personal information, click on “Federal” in the navigation bar on the left side of your screen. Then, on the page that appears, click on “Salary and Income”.
1. On the “Salary and Income” tab Select the “Invest and Save” option Click “Revisit” next to “Stocks, Cryptocurrencies, Mutual Funds, Bonds, Other (1099-B)”.
4. You will now see a page titled “OK, let’s get started with an investment type”. Select “Cryptocurrency” and click “Continue”.
6. You will now see a page that asks, “What is the name of the encryption service you used?” Select “Other”. Type “” in the “Name” field and select “Profit/Loss or 1099-B” as the “CSV Type”. Click “Continue”.
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7. Upload your Form 8949 TurboTax CSV to the “Go ahead and upload your crypto CSV file” page. You have just entered the “Crypto (Gain/Loss)” report in TurboTax
The instructions provided will help you report capital gains and losses, so if you’ve earned cryptocurrency income in other ways, you’ll need to report those gains separately.
TurboTax does not currently support direct reporting of gambling, mining or other forms of crypto income. To report it, follow these steps:
As noted, if you earned cryptocurrency through Bitcoin mining, DeFi staking or rewards, airdrops, or hard forks, it will not be reported on Cryptocurrency Form 8949. This is because it is taxed as ordinary income, not capital gains The process for reporting crypto income depends on your individual tax situation, so we recommend that you contact a crypto tax accountant.
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However, if you received a 1099-MISC form for stocks and rewards from an exchange like Coinbase, do the following:
An in-depth look at how to declare cryptocurrency in TurboTax without any hassles or errors. When combined with our online platform, TurboTax makes it easy to file crypto taxes Both crypto tax calculation software and a full service crypto tax accounting company, so if you have any questions or concerns,