I've got a 1099-B from Square for selling Bitcoin. Whats the appropriate investment type when documenting the sale in TurboTax? Doesn't seem to be one.

[Anonymous]

It would seem that stocks, bonds, mutual funds, etc. are options, but not anything else.

[JohnB5677 · Accepted solution]

You are correct.  You should post cryptocurrency transactions similar to stocks.

1. Income & Expenses

1. Scroll to Stocks, Mutual Funds, Bonds, Other
2. Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2020?
3. On the OK, what type of investments did you sell? screen, select Stock, Bonds, Mutual Funds. Then select Continue.
4. From here, you can import or manually enter your 1099-B.

Note: You'll need TurboTax Premier, TurboTax Live Premier, or TurboTax Self-Employed, TurboTax Live Self-Employed, to add any 1099-B forms.

[aldunn2000]

I also have a 1099-B from Square Inc. for selling bitcoin my problem is there is a separate category for entering cryptocurrency transactions so if I enter my 1099-B in the stocks section and then enter it again in cryptocurrency then I am getting taxed twice for the same capital gain. The cryptocurrency section isnt for 1099-B thats in the stocks section, very confusing.

[fanfare]

The crypto section is for filers who will not get a 1099-B.

Don't enter your transactions twice.

[4310]

Did you resolve the  issue with Square/Block cryto 1099 B?

Do we have to enter in stocks section as Crypto section don't accept 1099 B.

please advise.

Thans

[4310]

Where do we have to enter the transaction?

[4310]

Any resolution to the above issue?

[DianeW777]

Yes. Report your Bitcoin sales through Square in the stock sales section of TurboTax. You can do a search and then begin the entry, be sure to select that you do not have a Form 1099-B.

Here's where you enter or import your 1099-B in TurboTax:

1. Open (continue) your return, if you haven't already
2. Locate the search bar (upper right). Search for 1099-B, then select the Jump to link in the search results
3. Select Okay! on the screen Time to kick off your investments! OR Yes on the screen Did you sell any of these investments? then Continue
   • If you see Your investments and savings or Your investment sales summary, select Add investments or Add more sales
4. When you reach Let's import your tax info, choose how you want to enter your 1099-B:
   • If you want to enter your 1099-B manually, select Enter a different way, then select your investment type on the next screen
5. When you reach the Review your sales screen, the sale you just entered should be listed
   • If you need to add another sale, select Add another sale. Once finished hit Continue.

@4310

[4310]

TT asking to upload 1099 B after I enter crypto sales manually. Do i need to upload 1099 B as the square do send 1099 B to IRS. please clarify

[GeorgeM777]

No, there is no need to upload your 1099-B if you have already entered your cryptocurrency transactions.  Now, if you have other transactions to enter, such as stock trades, then you can upload that 1099-B.  Generally, when you go back to the section for Stocks, and Cryptocurrency, and if you select Add more sales, TurboTax will ask about uploading your 1099-B.  

Actually, even if you were to upload your 1099-B (and now we don't recommend you do it because it will duplicate your already entered cryptocurrency transactions), TurboTax does not send your 1099-B to the IRS.  TurboTax only sends your tax return to the IRS.  

@4310