Turbotax premiere and Crypto filing

[Critter-3]

When you import from a broker the sales are put in the correct categories.  

[mmish71]

But, I'm importing from Koinly. And the program breaks down all crypto transactions. I guess this is all way above my head.

thanks anyway

[fanfare]

so far three different version of TurboTax are mentioned in this thread.

Each has a different level of service for reporting this.

If you can't enter crypto, enter your transaction as a stock.

In description, put "<coin> Crypto Asset". where coin is whatever you are selling.

US gov considers it an asset not a currency and that's why you can enter it under stocks.

[Anonymous]

YOU ARE NOT CRAZY.  It's not there and intuit is doing the common weak deal of not addressing this issue quickly.  Product is thus, worthless!!!

[Anonymous]

Mine too.  YOU ARE NOT CRAZY!

[kristenmary]

I too have been searching how to do this. Robinhood gives a CSV file. How do I do that? Using TurboTax Premier. THERE IS NO CHOICE FOR CRYPTO as all the posters have said in this version. 

[AmyC]

Easy solution, follow these steps:

First, go through your transactions and remove all personal property losses. The IRS expects each transaction looked at in case of any of the transactions were loss due to personal use, such as lunch at Starbucks or payments towards bills, etc. Loss on use of personal property should not be included on your return. The gains are included along with any (gain or loss) transactions that were investment related.

Second, you need to enter only two lines.

In the 1099-B section, enter whatever is left after step 1 personal losses are removed:

• the total short term and 
• total long term transactions 

If you do the summary, you will mail a copy of your  Robinhood forms to the IRS. The program will give you instructions.

@kristenmary

[kristenmary]

Is this under "Investment Income" and then "Stocks, Mutual Funds, Bonds, Other". And I enter everything you said there? If I list each transaction separately does it save me from having to mail anything in? I traded two different crypto currencies and had 6 total transactions. Only made less than $50 so this is a huge pain that I have to do this manually. It is asking for Box 1A which isn't explicitly listed in on the 1099 but I assume is the name of the Crypto? Seems like the date acquired isn't required either but I did list it.  

[HelenC12]

@kristenmary 

It depends on whether your cryptocurrency was considered earned income or treated as a property sale. To help you determine which of these two possibilities applies, please see the various scenarios in this TurboTax FAQ: How do I report earnings or losses from Bitcoin and other cryptocurrency?

Cryptocurrency is taxed when you receive it as payment or have a transaction where you sell or trade it. If you just buy it and hold onto it, it won’t be taxed until you do something with it. Even if you don't receive a 1099-B, 1099-MISC, 1099-K, or summary tax statement for your cryptocurrency transactions, it’s your responsibility to report them.

For tax purposes, it’s either considered earned income or treated as property sales. We can help you figure out which applies to your situation.

It’s considered earned income when you:

• Receive it as payment for goods or services (like if you were paid in cash)
• Mine it and make a profit
• Receive new cryptocurrency from a hard fork followed by an airdrop or other transfer

It’s treated as a property sale, and the earnings are capital gains, when you:

• Sell it (like you would stock)
• Exchange it (swap one type of cryptocurrency for another)
• Spend it (use it as payment for goods and services)
• Convert it to US dollars (sell cryptocurrency to buy regular currency)

If you donate cryptocurrency, it isn’t taxed. In fact, you may be able to get a deduction for the donation.

[kristenmary]

Hi! Thank you  but the issue is how to physically enter it because TurboxTax left crypto currency off the desktop CD version. I know in my case it’s to be treated as an investment/gains because it’s not income, I was unclear where to enter it. The original responder explained but I had follow up questions because I’ve never done this before and this glitch in TurboTax is making it harder. I’m entering each transaction/trade individually which is a big pain. 

[fanfare]

@kristenmary 

entering six transactions is not a pain.

entering 500 or 1,000 transactions is a pain.

--

At tax time, you will  subtotal your SELL transactions by Sales Category.

IRS requires Box C/F details to be listed on your own Form 8949,
or on your other forms (e.g. spreadsheets) which have the same information and in the same manner as Form 8949.
Either way, if you choose to summarize ( not itemize) and e-File, you have to mail the transaction details to the IRS within three business days of IRS accepting your e-Filed tax return.

[kristenmary]

Actually I still think 6 is a pain when the program should do it like the other versions. I mean I paid the same amount for it. Besides that, I have my spouses separately to do which is way more than 6. I’d rather e-file and yes, this is a pain. Thanks though!

[jschmitz0921]

i did the same thing and now have wasted another $30 and three hours.  in addition, when you look at the turbo tax help section, it tells you to go to the investment section of wages and other income...there is no investment income.  I assume this means the stocks etc section which does not have crypto currency in it.

please help TT!

[HelenC12]

If you're using the TurboTax CD\Download version and need to import your cryptocurrency:

One option is to start a free tax return in TurboTax Premier Online. You don't pay for the return until you file it, so you won't have to pay the Online fee.  Enter (import) your cryptocurrency information in the Crypto section, and then save the .tax file (not PDF).  You can then open the tax file in TurboTax desktop, add the rest of your tax data and file.

• How do I save my TurboTax Online return as a tax data file? This FAQ will also have instructions on how to continue your return in the TurboTax CD\Download version.
• How do I import from the .txf file?

The other option would be to file using the Online software and get a refund for the desktop program.

According to IRS Notice 2014-21, the IRS considers cryptocurrency to be property, and capital gains and losses need to be reported on Schedule D and Form 8949 if necessary.

Like other capital gains and losses, your gain may be short-term or long-term, depending on how long you held the cryptocurrency before selling or exchanging it.

• If you owned the cryptocurrency for one year or less before spending or selling it, any profits are typically short-term capital gains, which are taxed at your ordinary income rate.
• If you held the cryptocurrency for more than one year, any profits are typically long-term capital gains, subject to long-term capital gains tax rates.

How you report cryptocurrency on your tax return depends on how you got it and how you used it. To read more, click here.

Related information: 

• Your Cryptocurrency Tax Guide
• How do I report earnings or losses from Bitcoin and other cryptocurrency?
• I didn't receive a 1099-MISC, 1099-B, or 1099-K for my Bitcoin or other cryptocurrency earnings, do ...
• How is cryptocurrency like Bitcoin taxed?
• I'm mining Bitcoin, what does that mean for my taxes?

Source: DawnC

[jschmitz0921]

So, can I import all my data from my current TurboTax (download version) file?  I have several hours of inputting data in my current return and only need crypto data.