How To Report Crypto on TurboTax?
As per the IRS, cryptocurrency is considered property. There are no taxes on cryptocurrency transactions when investing through tax-deferred or non-taxable accounts like IRAs and Roth IRAs. However, if you buy, sell or exchange cryptocurrency, it is necessary to pay crypto taxes. Reporting your crypto activity needs form 1040 schedule D. Additionally, you need to report your total capital gain or loss on your form 1040, line 7.
If you are facing any issues in reporting crypto on TurboTax, this blog post will be beneficial for you. So, get through the whole blog to learn the extensive information about easily reporting the crypto on TurboTax.
Method to report Crypto 1099-B into TurboTax
You must follow the instructions below to add your cryptocurrency 1099-B information in TurboTax.
First of all, open the TurboTax software and go to the Federal Taxes tab.
After that, under Wages and Income, go to Investment Income and click on the Start option in front of it.
Then you are required to click on the Yes option next to Windows.
After that, in the new window, select the radio button I'll type it in myself. Later click on the Continue option.
Next, you need to choose My bank/brokerage isn't here from the drop-down menu, especially for the tasty works.
And then, type in tasty works and click on the Continue option.
- Now, go to the radio button next to the I'll enter a summary for each sales category and click on it. It will allow you to enter your total Proceeds, Cost Basis, and your Long-term and Short-term trade.
Method to import the cryptocurrency transaction into TurboTax?
Here is the step-by-step guide to reporting the cryptocurrency transaction into TurboTax.
Double-click on the application to open it and sign in to your account.
Next, you need to open or continue your return.
And then click on the search option and enter cryptocurrency to open it.
After that, go and click on the Jump to cryptocurrency option.
When you see the screen “Did you sell any of these investments in 2022?*” you have to either choose the Yes option or click on the *+ Add investment option if you have already filled in some crypto info.
Afterward, click on Continue on the screen of Get ready to be impressed screen.
Furthermore, on the Let’s import your tax screen, look for your crypto exchange and select it.
Once you select the crypto exchange, the crypto transaction will be added to TurboTax. (The importing process can take up to 3 minutes.)
After that, you need to review the info on the cryptocurrency transaction on the screen of your investment or saving (or Your investment sales summary).
(Your transactions may be shown with Need review depending on the exchange you import from. You have to open your exchange and compare the information displayed with the info imported into TurboTax if you want to review it.)
- Lastly, when you are done reviewing, click on the Continue option to complete the process of importing.
Frequently Asked Questions (FAQs)
Do I need to upload documents to TurboTax?
Yes, it is necessary to upload documents to TurboTax if you want to complete your e-Tax filing. Additionally, it will not be able to work properly until you upload all the documents and take action for the request for the information.
What is better, TurboTax online or download?
Both the TurboTax online or from CD/download work similarly and do the work properly. So, it depends on your preference which one you like. However, you have to keep in mind that TurboTax online cannot cover some tax situations.
How do I upload tax documents to TurboTax?
Follow the below steps to upload the tax document to TurboTax.
First, sign in to your TurboTax account.
Then go to Your tax returns & documents.
After that, choose the option in my docs.
Next, click on the option Upload option and choose the documents you want to upload.
Now, you need to answer some of the questions and click on the Done option. (You can upload your other tax form.)
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