Virtual Currancy

[jtnaso]

I am using Turbo Tax Deluxe.   I marked the YES box about virtual currancy.  Where do you enter transactions where you exchanged one token for another?  How do I report these transactions.  Wht form needs to be used?

Thanks

[JohnB5677]

A taxable transaction will occur when you sell, trade, or otherwise exchange a  cryptocurrency.

You are required to provide a summary of each transaction.  This will include:

• Description

• Date of acquisition

• Cost or value at acquisition (may be zero)

• Date of sale or exchange

• Value or proceeds upon exchange

• All associated costs

This will all be entered in the Stocks, Cryptocurrency, Mutual Funds, Bonds, Other section

Tax on Cryptocurrency

To manually post your cryptocurrency transactions manually you can follow these steps.

1. In the Wages and Income section under 

2. Investments and Savings (or Investment Income),

3. select Start or Revisit next to Crypto (1099-B)

4. On the next screen, you may see Did you sell any of these investments in 2021? or Time to kick off your investments!, select either Yes or Okay!

5. On the We can make this faster screen, select Enter a different way, and then select Cryptocurrency on the following screen

   1. If, instead, you’re asked to select an investment type, select Cryptocurrency

   2. You’ll then see the Get ready to be impressed screen. Select Continue, then select Try another way

6. Select Type it in me on the Select your crypto experience screen 

7. On the Let’s enter your crypto tax info screen, search for your cryptocurrency exchange 

8. On the Did you get a 1099-B screen, answer accordingly

   1. If you didn’t get a 1099-B, skip stepping 11

9. Continue answering the interview questions to help us determine the best way to enter your transactions, then select Continue 

10. Depending on your answers, we’ll recommend either entering your sales One by one or as Sales section totals 

11. If you answered yes to getting a 1099-B in step 7, we’ll help you find your sales on your form. Then select Continue

12. Enter your sale information on the next screen, then select Continue

13. Review your sales information. Repeat these steps for any additional transactions.

[jtnaso]

Cryptocurrancy is not listed under the investment income section.  Do I just use the stock feature?

[Vanessa A]

Yes, you will enter it in stock feature as it is treated the same as sale of stock.

[jtnaso]

Thank you.  I suggest that in the future that you tell people to use the stock feature and not indicate to look for the Crypto lable.

Have a great day.