Directly from Turbo Tax for Tax Year 2020:
Starting this year, the IRS requires taxpayers to indicate if they made any virtual currency transactions during the tax year. Virtual currency includes any type of cryptocurrency.
A transaction involving virtual currency includes any of the following:
- Receipt or transfer of virtual currency for free
- An exchange of virtual currency for goods or services
- A sale of virtual currency
- An exchange of virtual currency for other property (including for another virtual currency)
