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Level 1
posted Feb 13, 2020 7:29:33 PM

What is the most preferred at correctly reporting the crypto taxes, .csv file containing crypto transactions or the actual Form 1099 B?

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1 Best answer
Expert Alumni
Feb 13, 2020 7:53:33 PM

The 1099-B makes it easier to report your crypto activity, but if you had other crypto activity that was not reported on a 1099-B, you will need to either enter it manually or import it through one of our partners. Here's how:

  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.

There's an upload limit on cryptocurrency transactions in TurboTax. If you have more than the limit, you’ll need a transaction aggregator. We’ll walk you through that in the cryptocurrency section. 

 

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20 Replies
Expert Alumni
Feb 13, 2020 7:53:33 PM

The 1099-B makes it easier to report your crypto activity, but if you had other crypto activity that was not reported on a 1099-B, you will need to either enter it manually or import it through one of our partners. Here's how:

  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.

There's an upload limit on cryptocurrency transactions in TurboTax. If you have more than the limit, you’ll need a transaction aggregator. We’ll walk you through that in the cryptocurrency section. 

 

Visit the original post

 

Level 1
Feb 13, 2020 7:57:50 PM

To Giselle,

 

Thanks for the reply. The reason I am asking this is the sole purpose of showing each transaction for the whole 2019 year. My 1099-B listing the crypto transactions have some date acquired classified as "Various". I am more than happy to use the Form 1099-B, but I need the exact amount that is viable to report on the Form 1040. So is it common and recommended to import the .csv file to get an exact amounts gained or lost? Thanks.

 

Expert Alumni
Feb 13, 2020 8:16:26 PM

If your 1099-B is showing "various" for acquired dates, then I would strongly recommend getting all your transactions in .csv form or even working with a company to reconcile your crypto transactions before you import them into TurboTax. It sounds like the "various" entries in your 1099-B might relate to crypto purchased prior to 2019. However, the issuer of the 1099-B does not know the acquisition date because you likely transferred the crypto to the issuer from another exchange instead of buying it right from the issuer. Frequent coin movements are common practice in the crypto space, as I'm sure you are aware.

 

Reporting the correct dates of acquisition for each crypto traded is the difference between the preferential long-term capital gains tax rates (asset held over one year) and unfavorable short-term capital gains rates (asset held less than one year). 

 

@gabegssanchez89

Level 1
Feb 13, 2020 8:24:25 PM

To Gisile,

 

I appreciate your opinion on this matter.

 

 

Level 1
Feb 21, 2020 3:05:50 PM

I have much more than the allowed number of crypto transactions to import into turbotax. 

If I'm understanding your response/instructions here, I need to report my cap gains under the same area as stocks etc?

When I reach the Federal Review on my return, turbotax is demanding as acquisition date and a sell date. My transactions were many multiple dates throughout the year.

How do I enter this correctly?

Expert Alumni
Feb 21, 2020 4:54:35 PM

You can only enter 50 transactions manually, or you can import up to 2251 transactions. If you have more than that to report, you can use a private accountant to reconcile your crypto transactions and aggregate them, or you can reconcile them on your own with a transaction aggregator. There are many services online that can help you aggregate your transactions and help you calculate your gains and losses.

 

When you are ready, you will enter them in the Cryptocurrency section in TurboTax. If you have a separate 1099-B for your crypto, you can enter that in the Stocks, Mutual Funds, Bonds, Other section.

 

Regarding the error message you are receiving, it sounds like you tried to aggregate everything on your own into one transaction. Unfortunately, you can't do that. The acquisition and sell dates must be identified. A professional aggregator will do this for every transaction, and it will then calculate your overall short- and long-term gain and loss. 

 

@Jerrybooth

 

Expert Alumni
Feb 21, 2020 4:55:09 PM

You are very welcome!

 

@gabegssanchez89

Level 15
Feb 21, 2020 5:14:13 PM

IRS requires all sell details to be supplied on Form 8949,
or on your own forms (e.g. consolidated 1099-B or spreadsheet) which have the same information and in the same manner as Form 8949.
Either way, if you choose to summarize, you have to mail the transaction details to the IRS within three business days of IRS accepting your tax return.
Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary. TurboTax won't ask you about wash sales if you don't check the box.

 

This includes crypto transactions, which you are reporting.

This year there is also a box to check that you have crypto transactions.
---
As an active investor, be aware that your category Box A sales without adjustments do not require Form 8949, so there is no reason to import those transactions.
Instead use the "enter a summary" option to put your numbers on Schedule D Line 1a or Line 8a.

The actual date is not important, thus various is a perfectly acceptable entry.

---

if your 1099-B doesn't show category A or D, then you can make the mail-in election.

Level 1
Feb 22, 2020 6:39:04 AM

Thanks for the reply, 

My CSV file from CoinTracking has 2648 transactions in it. This many transactions (over 2251) eliminates CSV import.

CoinTracking.info offers Turbotax (TXF) files. Using TurboTax Self Employed I'm not able to import them and the CSV file is too big. Suggestions?

The help files in the online turbotax version says: "You can only import .TXF files into TurboTax, not .csv files and you can only import .TXF files into DESKTOP versions of TurboTax."

Do I need to purchase a desktop version?

 

Since I do not have a 1099-B from mulltuple exchanges used over 2019, does that mean I can't use the Stocks, Mutual Funds, Bonds, Other section?

Level 15
Feb 22, 2020 7:34:03 AM

print the csv file and you can mail it in to the IRS within three business days of IRS accepting your tax return.

put a heading on it and label the columns to correspond to Form 8949.

 

IRS requires details to be listed on Form 8949,
or on your own forms (e.g. spreadsheets) which have the same information and in the same manner as Form 8949.

----

This procedure works (used to work) for the CD/Download version, Online should be the same or similar.

After answering YES to I have a 1099-B, click on the "I'll type it in myself" option
On the next screen, name your brokerage.
on the next screen, check ALL the boxes for which your 1099-B has transactions assigned to that Box.You'll have to enter the subtotals for each box category.

 

In your case you're using Category C/F.
THEN click the option "I have many sales and would rather mail them"
After you enter the subtotals, follow the "mailing instructions" for how to file correctly.

Your return will still have Forms 8949 to e-File but they will have subtotals instead of each individual transaction.

Level 1
Feb 22, 2020 7:38:04 AM

Should I buy the CD or can I download a "DESKTOP" version?

Level 15
Feb 22, 2020 8:04:16 AM

The desktop version is called "CD/Download", after you buy it, you can download and install it.

Level 1
Feb 22, 2020 8:15:19 AM

To Clarify, I DO NOT have a 1099-B to enter into Turbotax Self Employed  Online Version

 

I can produce a CSV, 8949, or Excel of all my 2019 trades and mail it

 

Level 15
Feb 22, 2020 4:18:38 PM

When you don't have a 1099-B you proceed as if you do have it.

Select Sales Categories C (and F if you have any Long Term).

Level 2
Mar 17, 2021 3:59:04 PM

I have been a TurboTax customer for about 20 years and I use the downloaded the Home & Business version and it does NOT have an option "Crypto" on the investment section. If I select to add a new account in the "Stocks, Mutual funds, Bonds and Other" it will NOT allow me to indicate that it is Crypto because I do NOT have a 1099-B oy any other report from CoinBase, since the gain is bellow 20K.  I don't want to add investment income labeled as from "No Financial Institution", as this would seem very fishy I believe. This seems to be a MAJOR functionality issue, HOME & BUSINESS is a higher level version and is supposed to allow you to input Crypto gains in a decent way!

Level 2
Feb 5, 2022 10:14:56 AM

The instructions dont match this years Turbotax Premier, could I get an answer on how to import the .csv file from my computer directly??

Expert Alumni
Feb 6, 2022 11:51:51 AM

Yes, you can report the transactions individually, or you can download them.

 

Reporting Cryptocurrency transactions

 

A taxable transaction will occur when you sell, trade, or otherwise exchange a  cryptocurrency.

You are required to provide a summary of each transaction.  This will include:

  • Description

  • Date of acquisition

  • Cost or value at acquisition (may be zero)

  • Date of sale or exchange

  • Value or proceeds upon exchange

  • All associated costs

This will all be entered in the Stocks, Cryptocurrency, Mutual Funds, Bonds, Other section

 

You may wish to use a crypto trading/tracking software to maintain the details for tax reporting.

Although brokers now maintain records of the Cost Basis of investments and stocks.  It is your individual responsibility to maintain those records.

 

Online version

Cryptocurrency download CSV file

 

The easiest and fastest way to get your crypto transactions into TurboTax is by using the import method. If you’d rather download a CSV file from your crypto service and upload it to TurboTax, here’s how.

  1. Sign in to TurboTax, and open or continue your return

  2. In the Wages and Income section under Investments and Savings (or Investment Income), select Start or Revisit next to Crypto (1099-B)

  3. On the next screen, you may see Did you sell any of these investments in 2021? or Time to kick off your investments!, select either Yes or Okay!

  4. On the We can make this faster screen, select Enter a different way, and then select Cryptocurrency on the following screen

    1. If, instead, you’re asked to select an investment type, select Cryptocurrency

    2. You’ll then see the Get ready to be impressed screen. Select Continue, then select Try another way

  5. Select Upload on the Select your crypto experience screen 

  6. On the What’s the name of the crypto service you used screen, select your crypto service from the dropdown menu 

  7. After downloading your CSV file from your crypto service, upload it on the Go ahead and upload your crypto CSV file screen 

    1. Note: Make sure your file extension is .csv

  8. Review your uploaded crypto information

TurboTax supports CSV files uploaded from these cryptocurrency services.

 

 

  • Bitcoin.Tax

  • BitTaxer

  • Coinbase

  • CoinTracker

  • CryptoTrader.Tax

  • Robinhood

  • TokenTax

  • ZenLedger

Level 2
Feb 6, 2022 3:43:15 PM

what about the downloaded version of TT Home&Business?

Level 2
Feb 6, 2022 6:21:27 PM

Instructions are out of date, don't match up for this year's downloaded version. Phone support has been a joke. Very disappointed with TurboTax. 

 

 

Level 2
Feb 6, 2022 7:01:42 PM

You're absolutely right. TurboTax is completely lost,  lots of TT Help instructions are incorrect, meaningless, and if you call, the agents are very poorly prepared. I wasted more than an hour on the phone with agents that had no idea of the functionality the TT applications have and should have and ended up with a CPA that guide me on how to go around the functionality flaws and fix the issue manually. Worst, they don't seem to have the proper processes and tools to report application bugs, even serious bugs, to the development and maintenance team. That's a real shame! I've been a TT customer for about 20 years, but for 2022 I'll be looking for a more solid tool for sure, lost confidence in their tool, processes and team.