You pay additional self-employment taxes for income reported in the "Other Self-Employment" section. As far as cryptocurrency goes, this is where you would report the income you made from mining or if you sold a product or service and were paid in cryptocurrency.
The rewards payments from Coinbase for things like "Watch this video to learn about xyz currency and earn $3" would be reported as other income. The Income Report you mentioned from Bitcoin.tax should have all your other income. To enter income here, follow these steps:
- With your return open, go to Federal > Income & Expenses
- Open the Less Common Income section and start or revisit the last entry, Miscellaneous Income, 1099-A, 1099-C.
- On the next screen, start/revisit the very last entry, Other Reportable Income, and answer Yes on the following screen.
- On the next screen, enter a description (for example, "Coinbase Rewards Payments") and then enter the total USD amount.
- You may repeat this for every currency for which you received interest or a rewards payment or combine them on a single line.
- Select Continue when finished.
The third section to report cryptocurrency is for the actual gains and losses from trading cryptocurrency. This is your Capital Gains Report. To report these:
- With your return open, go to Federal > Income & Expenses
- Open the Investment Income section and start or revisit Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
- Continue by selecting Yes and then clicking on Cryptocurrency
- You can try any of the import options, but if you have too many trades, you can select Try Another Way and then Upload it from my computer.
- Select Bitcoin.tax from the pull-down menu and import their CSV.
The aggregated totals of your trades should carry through and be reflected on your tax return when the CSV imports. The Closing Report is not reported on your taxes. That is for your information and should provide you with information about your current investments, how long you have held them, and how much you bought them for.
