My Federal has been accepted, but not my state? I see no option to amend. Do I need to wait to start my amended return?
Some background, TT Online has a pretty clear bug in it (and upon further research, has for a while now) regarding 1099-misc received for crypto investment.
If you enter the 1099-misc information and check that you had the "intent to earn money", TT will treat the income as a business. I made this mistake by following TT's instructions to the letter, now I'm stuck with amending a return.
The fix:
Enter the 1099-Misc
On the next screen Describe what the payment was for
On the next screen select "none of these apply"
On the next screen select "No it didn't involve work like my main job"
On the next screen select "I got it in 2020" ONLY
On the next screen select No, it didn't involve intent to earn money
Some are claiming that I should not have been sent a 1099-misc for passive crypto earnings, however it seems that all platforms are sending 1099-MISCs and here's why: (From BlockfFi)
"According to the IRS, earning income on crypto is considered a taxable event in the US, and cryptocurrencies are generally treated as property (similar to gold or shares in publicly owned companies) for tax purposes. That means that interest paid to you on crypto assets are payments of property, making them subject to reporting through the 1099-Miscellaneous (also known as the 1099-MISC) form. Please note, only US taxpayers who have earned more than $600 of interest and bonuses in 2020 will have a 1099-MISC form, which will be available for download by January 31, 2021.
Additionally, US taxpayers who have traded during 2020 will receive a 1099-B form used to report activity. This report will be made available for download by February 15, 2021."
