Looking for crypto tax software to use with TurboTax? Here’s why you should choose CoinLedger. What’s the best crypto tax software to use with TurboTax? TurboTax partners with CoinLedger to simplify the process for users. Luckily, there is an easy way to report your cryptocurrency taxes. At this time, TurboTax does not pull transactions from Coinbase and other crypto exchanges automatically. However, it’s important to note that Coinbase has stated that it no longer issues Form 1099-B to customers. If you have more than a handful of cryptocurrency transactions, trying to report your crypto transactions directly within TurboTax alone can get complicated.Īt this time, TurboTax allows users to import transactions from Coinbase through Form 1099-B. However, TurboTax’s cryptocurrency functionality is limited. TurboTax does allow users to report cryptocurrency on their taxes. Can I file cryptocurrency taxes on TurboTax? Examples of earning cryptocurrency income include earning staking income or airdrop rewards.įor a more detailed explanation, check out our complete guide to cryptocurrency taxes. Ordinary Income: If you earn cryptocurrency directly, you’ll recognize ordinary income based on the fair market value of your coins at the time you received them. Examples of cryptocurrency disposals include selling your cryptocurrency or trading your coins for another cryptocurrency. Remember, cryptocurrency is considered a form of property subject to capital gains and income tax.Ĭapital gains: If you dispose of your cryptocurrency, you incur a capital gain or loss. The basics of cryptocurrency taxesīefore we dive into how you can report your cryptocurrency trades on TurboTax, let’s review the basics of crypto taxation. In this guide, we break down the basics of cryptocurrency taxes and walk through the step-by-step process for crypto and bitcoin tax reporting within TurboTax-both online and desktop versions. To enable this functionality, the TurboTax team has partnered with CoinLedger. And you make that as hard as possible.TurboTax allows cryptocurrency users to report their cryptocurrency taxes directly within the TurboTax app. I need to import data from my TD Ameritrade trust account, and print out a K-1. Because TT Business is a ripoff anyway, and I only need it to generate a single page K-1. If I am going to be doing that, and it appears that I will, year after year, I might as well buy Tax Act and save some $$. And yet you have a flawless import module in TT Business. I had to enter 80 stock transactions for a trust using TT Premier. NEXT YEAR I WILL NOT BE BUYING TT Business. HAVE THE VP of DEV explain this to me like I'm not a software tester.Īnd, while we are at it, have him explain to me why after all these many years, TT Business still has no import module to import transactions from TD Ameritrade, eTrade, Schwab, Fidelity. Yet, TT regularly updates both versions multiple times through the tax season. So, to be clear, you pay more for the CD version, likely due to packaging and shipping, but they fail to let you know that it does not import crypto transactions from Coinbase?! But even so, I would have bought the online version this year, WHICH WAS CHEAPER by $10, if I had known this. Lucky for me, we use our own spreadsheet, finely tuned year after year. What could be so different about the desktop version than the online one? I have traded crypto for years, and this is the first I have heard of this inherent deficiency. Translate proceeds of each transfer into US dollars at the time of the transfer.When asked to Choose the type of investment you sold select Everything else.When asked Did you get a 1099-B or a brokerage statement for these sales? select No.You'll list each trade/sale in the Stocks, Mutual funds, Bonds, Other interview.Note: There isn't a specific section for digital currency, but if you answer the questions related to sales, we'll be able to do the proper calculation. Continue following the onscreen instructions and we'll calculate the gain or loss from the sale.Answer Yes to the question Did you sell any investments? (If you land on the Here's the investment sales we have so far screen, select Add More Sales.).In the search box, search for investment sales and then select the "Jump to" link in the search results.Open (continue) your return in TurboTax.For some reason TurboTax has not yet updated their desktop Premier version for cryptocurrencies as they have with the online Premier version. The online version has a separate section for cryptocurrencies and walks you through the transaction.įollow these steps in the Premier Edition: (for online version but it will assist you)
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