topic 1040 Schedule 1 Cryptocurrency question in Get your taxes done using TurboTax

1040 Schedule 1 Cryptocurrency question

SKT95 — Thu, 20 Feb 2020 22:37:42 GMT

My wife and I just filed our taxes, and now I am confused if we answered the question in regards to cryptocurrency correctly. The question was ambiguous at best. She bought Bitcoin in 2019 so we clicked the box yes. Was that correct or do we have to amend our taxes and check no? Thanks so much for you help. She did not trade it just hold it.

Re: 1040 Schedule 1 Cryptocurrency question

AmyC — Thu, 20 Feb 2020 22:56:24 GMT

Buying the bitcoin is not a taxable event. Think of it like stock, it is only taxed when you sell it. No need to amend.

Re: 1040 Schedule 1 Cryptocurrency question

SKT95 — Fri, 21 Feb 2020 00:15:30 GMT

Thanks but did we answernthe schedule 1 question correctly by checking yes. It says at any time durimg 2019 did you recieve sell send exchange or otherwise acquire financial interest. I would assume acquiring financial interest is buying and holding correct. I am very confused it should say did you buy sell recieve etc.

Re: 1040 Schedule 1 Cryptocurrency question

AmyC — Fri, 21 Feb 2020 00:30:20 GMT

The program asks a lot of questions that do not go on your actual tax return. They are just guiding the program. That is one of those questions. There are always more questions that follow up. You would have been asked about selling stocks, or other things. As long as you did not actually enter the purchase of the cryptocurrency on your return, you are fine.

Re: 1040 Schedule 1 Cryptocurrency question

mary — Fri, 21 Feb 2020 00:38:32 GMT

YOU DON'T REPORT THE TRANSACTION UNTIL YOU SELL IT