How to File Your Crypto Taxes with TaxAct (Step-by-Step)

Are you trying to report your cryptocurrency taxes on TaxAct? 

TaxAct helps millions of customers navigate tax season. While the platform wasn’t built specifically for cryptocurrency, it can help crypto investors report taxes on their holdings. 

In this guide, we’ll cover the basics of cryptocurrency taxation and share a simple step-by-step process that can make filing your crypto taxes on TaxAct easier than ever. 

Do I report buying cryptocurrency on my taxes?

Remember, cryptocurrency is considered property by the IRS and is subject to capital gains and income tax. 

Capital gains tax: If you dispose of cryptocurrency, you’ll incur a capital gain or loss depending on how the price of your crypto has fluctuated since you originally received it. Examples of disposals include selling cryptocurrency or trading it for other cryptocurrencies. 

Income tax: If you earn cryptocurrency, you’ll recognize ordinary income based on the fair market value of your coins at the time you received them. Examples include earning staking, mining, or airdrop rewards. 

For more information, check out our complete guide to crypto taxes. 

Does TaxAct handle cryptocurrency? 

While TaxAct does allow users to file crypto taxes, the platform does have limitations. 

Because TaxAct is not a native crypto tax calculator, the platform does not have automatic integrations with prominent exchanges. That means that TaxAct may have trouble determining your cost basis for crypto disposals and calculating your capital gains and losses. 

Luckily, TaxAct partners with crypto tax platforms like CoinLedger to make filing cryptocurrency taxes easier than ever. 

Why should I use CoinLedger with TaxAct? 

If you’re looking for a crypto tax software to use with TaxAct, consider CoinLedger. 

The simplest platform on the market: You don’t need to be a tech or finance expert to use the platform. CoinLedger is easy-to-use and designed for the everyday crypto investor. 

Don’t venture into tax season alone: If you have any questions during any step of the process, our support team is ready and available for all of our customers. 

Import your tax return with a click: Once you’ve uploaded your crypto transaction history into CoinLedger, you’ll be able to create a crypto tax csv file that you can import to your TaxAct account in minutes. 

Interested in getting started? Generate a free preview report today. 

How to file your crypto taxes with TaxAct 

Once you’ve created a CoinLedger account, you’ll be able to compile all of your crypto gains and losses on a single csv file. Here’s how you can upload this file onto your TaxAct account. 

1. Log in to your TaxAct Account

2. Navigate to the Stock CSV Section

Search "Stock CSV" from the help center. Select "Import - Stock Transactions via a CSV file".

3. Select CSV Import

4. Click ‘Choose File’ and select the TaxAct CSV file that you downloaded from CoinLedger

This is the file that contains all of your gains and losses from all of your cryptocurrency transactions. Then, click ‘Continue’

5. You will see a preview of the file you just imported

CoinLedger automatically matches your data to TaxAct’s format, so you can simply hit ‘Continue’.

6. Select all rows by clicking the top checkbox

This will select all rows. Click ‘Continue’.

7. Click the “Import” button to import your data into TaxAct.

Once complete, you’ll see this message!

8. To review your imported transactions, you can launch the TaxAct Stock Assistant. You can manage your transactions here.

9. That’s it! You’ve successfully imported your cryptocurrency transactions

You can now complete the rest of your tax return within TaxAct.

Frequently asked questions 

Let’s cap things off by answering some frequently asked questions about TaxAct crypto taxes. 

When do you report cryptocurrency on your tax return? 

Typically, you report cryptocurrency on your tax return when you’ve disposed of it or earned crypto income. Holding cryptocurrency is not considered a taxable event. 

What tax rate do you pay on cryptocurrency? 

The tax rate that you pay on cryptocurrency is dependent on multiple factors, such as the length of time you’ve held your crypto and your personal income bracket. 

Where do I enter crypto on TaxAct? 

Cryptocurrency gains and losses should be entered in the ‘Investment Income’ section of your TaxAct account. 

How can I create a csv of my crypto transactions for TaxAct? 

With CryptoTrader.Tax, you can create a csv that contains all of your cryptocurrency gains and losses and can easily be imported into TaxAct.