TurboTax 2019 crypto currency airdrop reporting

[jnpcarole]

I can't figure out where to report as income the airdrops I've received. TT 2019 Premier Windows Desktop version.

[pushkartaxi]

I'm waiting for the answer on this. Can someone from Turbotax please respond?

[JohnB5677]

As I understand an airdrop it is a small amounts of the new virtual currency that is sent to your wallet for free.  

According to the IRS, if you receive cryptocurrency through an airdrop or hard fork, whether you asked for it or not, you are obliged to pay tax on it.  The tax you owe is calculated based on the “fair market value” of the coin, regardless of whether it can be spent, exchanged, or transferred.

Please see this link:  IRS on airdrop

[JohnB5677 · Accepted solution]

Sorry I posted before I was done.

To enter this in TurboTax go to:

1. Income
2. I'll choose what I work on
3. Less common Income
4. Go down to Miscellaneous Income
5. Select Other reportable Income
6. Yes you did have other reportable income
7. Enter description and amount

[texas75]

This does not work for the desktop edition.  Specifically, you need form 8949 to enter cost basis.  

[CassLO]

Once you have your figures:

1. Open or continue your return.
2. Select Federal from the left menu, and Wages & Income from the menu near the top.
3. Scroll down and select Show more next to Investment Income.
4. Select Start or Revisit next to Cryptocurrency.
5. Follow the instructions and we'll calculate the gain or loss from the sale.

Please see the TurboTax FAQ's below for more information:

• How do I report Bitcoin or other cryptocurrency as a capital gain?
• How do I report earnings or losses from Bitcoin and other cryptocurrency?
• TurboTax Makes it Easier for Coinbase Customers to Report Their Cryptocurrency Transactions