TurboTax allows cryptocurrency users to report their cryptocurrency taxes directly within the TurboTax app. To enable this functionality, the TurboTax team has partnered with
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.
The basics of cryptocurrency taxes
Before we dive into how you can report your cryptocurrency trades on TurboTax, let’s review the basics of crypto taxation.
Remember, cryptocurrency is considered a form of property subject to capital gains and income tax.
Capital gains: If you dispose of your cryptocurrency, you incur a or capital gain . Examples of cryptocurrency disposals include selling your cryptocurrency or trading your coins for another cryptocurrency. loss 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 earning cryptocurrency income include earning staking income or . airdrop rewards
For a more detailed explanation, check out our
. complete guide to cryptocurrency taxes Can I file cryptocurrency taxes on TurboTax?
TurboTax does allow users to report cryptocurrency on their taxes.
However, TurboTax’s cryptocurrency functionality is limited. If you have more than a handful of cryptocurrency transactions, trying to report your crypto transactions directly within TurboTax alone can get complicated.
Does TurboTax import from Coinbase?
At this time, TurboTax allows users to import transactions from Coinbase through Form 1099-B.
However, it’s important to note that Coinbase
that it no longer issues Form 1099-B to customers. At this time, TurboTax does not pull transactions from Coinbase and other crypto exchanges automatically. has stated
Luckily, there is an easy way to report your cryptocurrency taxes. TurboTax partners with CoinLedger to simplify the process for users.
What’s the best crypto tax software to use with TurboTax?
Looking for crypto tax software to use with TurboTax? Here’s why you should choose CoinLedger.
Highly capable: CoinLedger is designed to serve crypto investors in any circumstance and with dozens of exchanges including integrates , Coinbase , and Kraken . Gemini Get the support you need: We know that trying to report your taxes on your own can be difficult. If you need assistance at any point, our support team is ready and available for all of our customers. Import your gains and losses with a click: Once you’ve imported your crypto transaction history and generated your within CoinLedger, you’ll be able to import them directly into TurboTax with the click of a button. crypto tax reports Learn more about how CoinLedger works . How to enter crypto gains and losses into TurboTax
Here’s how you can generate a complete gain/loss report on the online version of TurboTax.
1. Navigate to TurboTax Online and select the Premier or Self-Employment package
Head to TurboTax Online and select your package. Both Premier and Self-Employment support cryptocurrency tax reporting.
2. Answer initial prompts and questions
Upon first sign-in, TurboTax Online will ask you to complete some initial prompts and fill out your basic information. You are not able to move forward within the app until this step is completed.
3. Select ‘I Sold Stock, Crypto, or Other Investments’. 4. Navigate to the Cryptocurrency Section
To get to the Cryptocurrency section of the app, go to the ‘Federal’ tab and then select ‘Wages & Income’.
5. Add your cryptocurrency data
Within the Wages and Income section, scroll down to the Investment Income portion. Select start for ‘Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)’.
6. Select ‘Cryptocurrency’ as your investment type 7. Select ‘Change How I Enter My Form’
Since you have already aggregated all of your cryptocurrency transactions from your exchanges within CoinLedger, don’t select any of the platforms listed such as Coinbase, Gemini, and Binance. Doing this would produce duplicate data. Instead, select ‘Change how I enter my form’.
If you haven’t already built out your gains, losses, and income tax reports within CoinLedger, now is the time to do so. Simply create an account, connect your exchanges and wallets, and generate your necessary
with the click of a button. crypto tax reports 8. Import your TurboTax Online report
From your tax report dashboard in CoinLedger, download your “TurboTax Online” file. This file consists of your cryptocurrency gains and losses from your trading activity.
9. Select “Upload it from my computer” as your crypto experience 10. Select "CoinLedger" as your platform
CryptoTrader.Tax has rebranded to CoinLedger. From the dropdown, select CoinLedger as the platform you are importing from.
11. Upload the “TurboTax Online” CSV file that you received from CoinLedger
Here, you can upload the csv that you downloaded from CoinLedger containing all of your cryptocurrency gains and losses.
Congrats! You have finished.
That’s the end of the process! If you’ve completed all of the steps above, you’ll be able to see a complete record of your crypto gains and losses.
Important Note: Do not be alarmed if TurboTax asks you to review each imported crypto transaction individually within the the completecheck™ to-do list. Your cryptocurrency transactions have already been reviewed from within CoinLedger. You can skip this individual review process by scrolling to the bottom of this page (sometimes hundreds of transactions) and clicking continue.
How do I report crypto income with TurboTax?
Remember, the process above is designed to help you report your capital gains and losses. If you’ve earned other cryptocurrency income, you will have to report this separately.
At this time, TurboTax does not support the ability to directly report
staking and . You can report this type of income through the following process. mining income Go to the Federal Tab, then click Wages & Income. Find the row labeled ‘Less Common Income’, then click ‘Show More’. Navigate to the section labeled ‘Miscellaneous Income’ and click the ‘Start’ button. Navigate to the last section labeled ‘Other reportable income’ and click the ‘Start’ button. Here you can enter the details for your cryptocurrency income from staking, interest, etc. during the tax year. You can easily find all of your ‘crypto income’ within your CoinLedger income report. Cryptocurrency taxes with TurboTax desktop edition
The above steps outlined the process for reporting your cryptocurrency taxes within the online version of TurboTax. The desktop version of TurboTax doesn’t
officially support crypto. For this reason, it's recommended you use the online version for your crypto tax reporting.
However, there still is a way to get your cryptocurrency tax information into the Desktop version of TurboTax. To learn more, check out this article that outlines the
. step-by-step process What if I have more than 2,000 transactions?
Currently, TurboTax Online can only import up to 2,000 crypto transactions via its cryptocurrency import.
If you have more than 2,000 transactions, CoinLedger will automatically consolidate your TurboTax Online file by asset type so that you can still import your transactions and still file your taxes with TurboTax.
When e-filing a consolidated 8949, you need to take one additional step and mail in your complete 8949 to the IRS. For more detailed instructions, check out our guide to
. mailing your IRS 8949 Get started today!
Want to file your cryptocurrency taxes before the deadline? Try CoinLedger, the crypto tax software trusted by more than 300,000 investors to make filing cryptocurrency taxes easier than ever.
. Get started with a free preview report today Frequently asked questions Does TurboTax calculate crypto gains?
While TurboTax can help you calculate your crypto gains manually, the platform does not have the same level of functionality as a native
like CoinLedger. crypto tax calculator How do I report cryptocurrency on my taxes?
Cryptocurrency gains and losses should be reported on Form 8949 while cryptocurrency income should be reported on Schedule 1, Schedule B, or Schedule C depending on the nature of your earnings.
How do I report staking and mining income on TurboTax?
Cryptocurrency income can be entered as ‘Miscellaneous Income’ in the TurboTax platform.
How do I format my cryptocurrency transactions into csv format for TurboTax?
With CoinLedger, you can download a csv file of all of your cryptocurrency gains, losses, and transactions during the year which can be automatically uploaded into TurboTax.