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I accidentally answered "No" on the digital asset question but I did sell cryptocurrency. However, I declared all my sales (imported). Do I need to file an amendment?

Somehow I read the digital assets as NFTs and answered no. I already filed my taxes. My sales are clearly listed on Form 8949. Should I file an amendment? The Federal submission was already accepted. I am beyond confused on Turbo would not double check this in review when there clearly are crypto currency transactions imported. Be warned!
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TeresaM
Expert Alumni

I accidentally answered "No" on the digital asset question but I did sell cryptocurrency. However, I declared all my sales (imported). Do I need to file an amendment?

The IRS asks that question on everyone's return now, that is why the question is there.

If you reported your sales then the tax calculations on the return should be fine. It is highly unlikely that they would ever have a question about the checkbox. People make mistakes on returns very often and the IRS is accustomed to this. 

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3 Replies

I accidentally answered "No" on the digital asset question but I did sell cryptocurrency. However, I declared all my sales (imported). Do I need to file an amendment?

you don't need to file an amendment in this situation.

@amsync 

I accidentally answered "No" on the digital asset question but I did sell cryptocurrency. However, I declared all my sales (imported). Do I need to file an amendment?

Thanks. I tried to even look in Turbotax and when I open the amendment menu there does not even seem to be a way to change the answer to this question. When I go into investments I can add or delete crypto investment sales but that does not direct to the digital assets question, so it seems such an amendment isn't even possible? I am completely confounded how this could work this way. I mean as soon as someone imports crypto sales, why would any tax software not automatically direct them to that question or change it for them. Seems bizarre. 

TeresaM
Expert Alumni

I accidentally answered "No" on the digital asset question but I did sell cryptocurrency. However, I declared all my sales (imported). Do I need to file an amendment?

The IRS asks that question on everyone's return now, that is why the question is there.

If you reported your sales then the tax calculations on the return should be fine. It is highly unlikely that they would ever have a question about the checkbox. People make mistakes on returns very often and the IRS is accustomed to this. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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