topic Re: Schedule C & Crypto in Get your taxes done using TurboTax

Schedule C & Crypto

datajana — Thu, 27 Jan 2022 20:51:12 GMT

I am having to file a Schedule C and also report crypto earnings of less than $30 (I have other earnings that are requiring me to report earned income).

My problem is how/where do I report the crypto? I’m having to use the generic 999999 business code for my other earned income, so how should I combine it with my crypto?

I’m seeing another form for the crypto as well, and I also have a very small loss of 99-cents with the crypto on top of all of that.

(If you can’t tell, this is all very convoluted for me)

Re: Schedule C & Crypto

ColeenD3 — Thu, 27 Jan 2022 21:02:42 GMT

Was your crypto income compensation for your business? What is your business?

If it is not compensation for your business, then follow the steps below.

Reporting cryptocurrency is similar to reporting a stock sale. You'll need to report your cryptocurrency if you sold, exchanged, spent or converted it. When it comes to hard forks and airdrops, you only have taxable income if it results new cryptocurrency.

You have to do this for every trade you made. If you bought coins at different prices or sold partial amounts, then you have to keep track and record the difference of what you sold. Cryptocurrency exchanges are not required to provide a 1099-B or summary tax statement for cryptocurrency transactions.

You'll receive a 1099-K if you made over 200 cryptocurrency transactions or your proceeds exceeded $20,000. You don't need to enter all the details from this 1099-K in TurboTax. Enter all your sales and trade info to accurately capture all your cryptocurrency transactions and keep the 1099-K for your records.

It’s your responsibility to keep records of your transactions. The most common way to do this is to download your order or trading history from your exchange’s website. You may need to do this a few times throughout the year due to limits on how far back you can get information.

Once you have your figures:

Open or continue your return in TurboTax Online.
Select Federal from the left menu, and Wages & Income from the menu near the top.
Scroll down and select Show more next to Investment Income.
Select Start or Revisit next to Cryptocurrency.
Follow the instructions and we'll calculate the gain or loss from the sale.

There's an upload limit of 2,000 cryptocurrency transactions in TurboTax. If you have more than that, you’ll need a transaction aggregator. We’ll walk you through that in the cryptocurrency section.

Please see this LINK for more information.

Re: Schedule C & Crypto

datajana — Thu, 27 Jan 2022 21:23:34 GMT

I’m not receiving any forms because I made only one conversion and had only about $30 of income last year.
And yes, I have records because the exchange (Coinbase) kept them for me.

Not sure if this will affect it or not.

Re: Schedule C & Crypto

AmyC — Sat, 29 Jan 2022 03:18:41 GMT

$30 of income does not qualify you to file a sch C. You do need to report the income. You can just type in the sale online under Cryptocurrency. You can type it in manually. The IRS does require you to mail your .csv file.

Did you purchase and hold like a stock or did you spend it - like it buying coffee at Starbucks. Personal use vs security holdings are treated differently. Both are taxed on gains. Also, if you had money in a foreign wallet, you may need to file the FATCA.

In addition, here is what the IRS wants your personal spreadsheet to look like.

Re: Schedule C & Crypto

datajana — Sat, 29 Jan 2022 03:27:02 GMT

My total income is $550+, so I do have to file.

I had around $30 in income from crypto and converted $5 worth. I did not spend any.

Re: Schedule C & Crypto

AmyC — Sat, 29 Jan 2022 04:13:43 GMT

Yes, all gains must be reported. Income and conversion are both taxable events.

The online version supports cryptocurrency, not the desktop version. You must use the online version to report those gains You can follow the instructions from @ColeenD3 above. Instead of uploading transactions, you just type yours in manually or upload your own .csv file as a document and the select that it is a 1099-B.

Either way, you will need to mail your csv file with the 8453 and 8949 after filing.