Turbotax Online setting digital asset question to No even after entering crypto transactions

[RJ2024]

We added a bunch of crypto transactions under Wages and Income and clicking on Crypto. However, Turbotax keeps checking the No box on the Digital Assets question in the 1040 form. Tried different ways of entering/importing this data. Cleared cache and tried it from a different browser also. But generated 1040 keeps the No box checked. Any ideas?

[JamesG1]

The Digital Assets question 

At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? 

is required to be answered on the 2023 Federal 1040 income tax return.  

Reporting cryptocurrency income on the Federal 1040 income tax return does not change the answer from No to Yes.

In the Online versions, the question may be found by:

• Down the left side of the screen, select Wages & Income.
• Scroll to the bottom of the screen and select Done with income.
• Continue through several screens until you reach the screen Did you have a financial stake in a digital asset?

IRS FAQ here explains:

Checking “Yes”: Normally, a taxpayer must check the "Yes" box if they:

• Received digital assets as payment for property or services provided;
• Transferred digital assets for free (without receiving any consideration) as a bona fide gift;
• Received digital assets resulting from a reward or award;
• Received new digital assets resulting from mining, staking and similar activities;
• Received digital assets resulting from a hard fork (a branching of a cryptocurrency's blockchain that splits a single cryptocurrency into two);
• Disposed of digital assets in exchange for property or services;
• Disposed of a digital asset in exchange or trade for another digital asset;
• Sold a digital asset; or
• Otherwise disposed of any other financial interest in a digital asset.

[RJ2024]

Thank you for the steps. We entered the crypto transactions specifically under Wages and income -> Investments. I thought this would cause the Digital Assets question to be answered as Yes. But it is not doing that. Not seeing a Did you have a financial stake in a digital asset? question come up anywhere in the interview. Kind'a lost here. Unable to modify the form directly either in TT Online.

[PatriciaV]

As JamesG1 said earlier, reporting cryptocurrency income under Investment Income in TurboTax does not change the digital assets answer from No to Yes.

Follow the instructions below to review your answers to several questions, including digital assets:

In TurboTax Online:

1. Down the left side of the screen, select Wages & Income.
2. Scroll to the bottom of the screen and select Continue.
3. Continue through several screens until you reach the screen Did you have a financial stake in a digital asset?

In TurboTax for Desktop:

1. Go to Federal Taxes >> Wages & Income
2. Scroll to the bottom and click "Done with income."
3. Continue through the questions about foreign accounts and disaster distributions.
4. The next page asks about digital assets.

@RJ2024

[frustrated_user2]

You are wrong, this is not working on the desktop version of the software.

[SusanY1]

Are you not able to select "yes" on the digital assets question or is some other issue appearing in relation to your reporting?  Please provide a little more detail about what you're experiencing when you try to select yes to the digital assets question so that we can provide additional assistance. 

@frustrated_user2 

[frustrated_user2]

Initially answered "no" to the digital assets question because I did not have the documentation at the time. When I tried to revisit the questions as described above and in multiple locations on the forum, the question will be skipped and not asked again. I finally managed to edit the 1040 form directly to change the answer. So problem solved for me but the bug remains.

[hbob16]

Hi, I am having the same issue. The digital assets question does not show up when i go to Wages & income -> continue. I get the other 2 questions on foreign bank account and disaster distribution, then it just goes directly to Deductions & Credit section.

I am using the online version. I was on the phone with customer support from turbotax for 2 hours. I did screen share showed level 1 support it is not showing the questions, then showed level 2 rep it was not giving me the option to select, then a 3rd rep joined the call and we had to start all over again. Finally they are all convinced there is a software issue, created a ticket for me and ticket was closed in 15 minutes telling me to just go to Wages & income and click continue, which clearly does not work.

This is very frustrating, please help.

[DaveF1006]

To clarify, did the crypto transactions that you entered appear correctly on your return?  If so, you may wish to ignore the question.