It depends on the type of cryptocurrency transactions you have. To report the sale of cryptocurrency in TurboTax Desktop Premier:
- In the Personal > Personal Income section, scroll down to Investment Income and click Start/Update next to Stocks, Mutual Funds, Bonds, Other.
- Click Add More Sales or answer Yes to Did you sell any investments in 2021?
- Answer Did you get a 1099-B or a brokerage statement for these sales?
- If you did receive a 1099-B in which all the transactions are characterized as either covered long or short-term (Categories A or D), then you can report the category totals. If no adjustments are needed, the IRS will not require additional documentation.
- If you only have a few sales, you may enter each one manually. This will also prevent the IRS from needing any additional documentation if you do need to make adjustments to any of the information or the platform has not reported the holding period.
Cryptocurrency from mining is considered self-employment income as the fair market value in USD when you get the currency. If you accept cryptocurrency as a form of payment in any type of business, you would report the value of the currency in USD at the time of the transaction as business income. You would not be able to report this in Premier. To get to self-employment in TurboTax Desktop Home & Business:
- Go to the Business section and Business Income and Expenses.
- Enter the General Business Information then click Start next to Business Income.
- Report your cryptocurrency mining income as General Income.
Earnings through interest and rewards are considered Other Income and would be reported in TurboTax Desktop using the following steps:
- With your return open, go to Personal > Personal Income
- 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, "crypto interest") and then enter the total USD amount.
- You may repeat this for every currency for which you received interest or a reward or combine them on a single line.
- Select Continue when finished.
@WJHennig
