Hello I traded cryptocurrencies this last year and have over the 4000 transaction limit. I used CoinTracker to keep everything in one place. They generate the tax forms for me but the only form I have from them is Form 8949. There is no option to import that into TurboTax and I am very confused as what I should do.
I imported the transactions from CoinTracker but since I am over the 4000 limit it told me I needed to separate them and that is what the 8949 form does I believe. What do I need to do so that I can report these sales and file?
did the Form 8949 generated for you provide details of 4,000 transactions.?
You can mail that in to the IRS after you e-File with summaries by Box Category.
if you choose to summarize only, you have to mail the transaction details to the IRS within three business days of IRS accepting your e-Filed tax return.(unless you have attached a PDF of the transactions details to your e-Filed return. TurboTax seems to be adding this feature now).
Detail Reporting Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary.
Typically, your sales category for crypto is C or F.
There is no exception for these categories.