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.)
Comments
Post a Comment