Get your taxes done using TurboTax

It depends. You can begin by using the information in the link below. 

• How do I extract my 1099-DA from my consolidated 1099 statement?

Your IRS form 1099-DA reports gross proceeds, the digital asset, the number of units and the number of transactions.

1. Select Wages & Income.
2. Scroll to Investments and Savings.
3. Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) >  Add investments.
4. On the Save time and connect your financial accounts screen, select Enter a different way > Select Type it in myself, then Continue.
5. OK, let's start with one investment type, select Digital Assets > Click Continue.
6. On the screen Which bank or brokerage is on your 1099-DA, enter the information > Continue.
7. On the screen Did you get a 1099-DA from XXX?, select Yes.  Click Continue.
8. Answer the questions at the screen Tell us about the sales on your 1099-DA

Any digital currency you purchase becomes income at the time you redeem or sell the digital currency and must be reported .

• Cryptocurrency Guide (digital currency)

Holding Periods:

• Long term is a holding period of more than one year (one year plus one day) and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
• Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)

A solution can be to enter summary transactions if you have many transactions. Your brokerage statements should include a summary of your transactions, grouped by sales category, for example, Box A short-term covered or Box D long-term covered.

You can always use direct entry if you choose, with summary totals.  The only exception if wash sales, which must be entered separately, if you have any.

• How do I mail Form 8453? (review if alerted)