topic Cryptocurrency and Coinbase in Get your taxes done using TurboTax

How to enter cryptocurrency on the downloaded version???

kodiak1120 — Fri, 14 Feb 2020 22:05:19 GMT

I'm using the downloadable version of TT for 2019. Where do I enter cryptocurrency sales? It asked me at one point if I had sold and I said yes, but it never asked anything else. I've gone through all of the income topics and none of them cover crypto. I've seen reference online to the online version and you go under Federal and the Wages and Income, but those menu items are not within the downloaded version, which looks totally different. HELP!

Re: How to enter cryptocurrency on the downloaded version???

MinhT1 — Fri, 14 Feb 2020 22:24:05 GMT

Your should have received form 1099-B if you sold cryptocurrencies.

You can enter your form 1099-B by following these steps:

In TurboTax, open your tax return
Click on Federal in the left-hand column, then on Wages & Income on top of the screen
Scroll down to All Income, locate the section Investment Income and click on Show more
Click Start next to Stocks, Mutual Funds, Bonds, Other

Re: How to enter cryptocurrency on the downloaded version???

kodiak1120 — Fri, 14 Feb 2020 22:49:08 GMT

There is no left hand column on the downloaded version. It looks completely different than the online version... VERY ANNOYING!

Re: How to enter cryptocurrency on the downloaded version???

KathrynG3 — Sat, 20 Feb 2021 17:54:10 GMT

In TurboTax Desktop, to enter cryptocurrency that must be reported as an investment:

Option 1: Step By Step

From the Personal Tab>Personal Income
Select I'll choose what I work on
Scroll to Investment income and click Stocks, Mutual Funds, Bonds, Other click Start
Click Add an account
Did you get a 1099-B or a brokerage statement from these sales? Click No
Choose the type of investment you sold Select Everything Else and click Continue
Enter the details of your transactions

Option 2: From Forms Mode

Click on the Forms toggle in the upper corner>
Click Open Forms>in the search box, type cryptocurrency>
Click on Cryptocurrency Worksheet> click Open Form
Enter the details of your transactions

For a large number of transactions, enter it in summary form on Form 8949, one total for short-term and one total for long-term. Mail in the pages along with Form 8453 with the Form 8949 box checked.

For short-term transactions, Box C checked on Form 8949 for not being reported to you on Form 1099-B

For long-term transactions, Box F will be checked on Form 8949 for not being reported to you on Form 1099-B

Form 8453 can be found in Open Forms and printed to include with the hard copy details of your transactions.

[Edited 2/14/2020 | 5:46 PM PST]

Re: How to enter cryptocurrency on the downloaded version???

fanfare — Sat, 15 Feb 2020 01:37:46 GMT

For some reason, TurboTax Online offers this feature, but CD/Download does not.

Re: How to enter cryptocurrency on the downloaded version???

AllDespacito — Thu, 12 Mar 2020 23:16:26 GMT

@KathrynG3 Thank you for this information. This is the ONLY place that I've been able to find how to do this for 2019.

It's much, much worse process than 2018 but at least it works. No idea why TT would make this functionality hidden in TT Deluxe.

Re: How to enter cryptocurrency on the downloaded version???

KathrynG3 — Fri, 13 Mar 2020 14:41:55 GMT

You're welcome~we are happy to help.

Re: How to enter cryptocurrency on the downloaded version???

SK71 — Tue, 31 Mar 2020 23:23:44 GMT

This is terrible - can TurboTax please make it EXTREMELY clear that this feature is not available on Premier Desktop but Online? Why is this available for Online and not Premier Desktop?

Re: How to enter cryptocurrency on the downloaded version???

sibbsnb — Sun, 03 May 2020 07:24:00 GMT

First option is better

Re: How to enter cryptocurrency on the downloaded version???

ssmas — Tue, 14 Jul 2020 06:00:33 GMT

Why is the desktop version complete garbage compared to the online version?

Re: How to enter cryptocurrency on the downloaded version???

sibbsnb — Tue, 14 Jul 2020 06:10:51 GMT

It’s time to stop using the desktop version

Re: How to enter cryptocurrency on the downloaded version???

C-Meinert — Tue, 16 Feb 2021 04:16:14 GMT

Decided to give TurboTax one last chance for 2020 taxes and I already regret it. How hard is it to make a page available to enter this information. Next year its time to move to another solution.

Re: How to enter cryptocurrency on the downloaded version???

KathrynG3 — Tue, 16 Feb 2021 17:22:04 GMT

It is still possible to enter cryptocurrency in the CD/Download version. Unless you are mining cryptocurrency and should report it as self-employed income & expenses, you have two options.

Enter cryptocurrency transactions under Investment Income as Stocks, Mutual Funds, Bonds, Other.
Enter cryptocurrency directly on the designated worksheet, toggle to Forms mode and follow these steps:
- Click Open Forms and enter Cryptocurrency and Open Form.
- On the Crypto Wks, enter your details.

In TurboTax Online:

For up to 50 transactions, they can be manually entered.

If you have a large volume of transactions, TurboTax Online allows for importing up to 2,000 transactions automatically for cryptocurrency. For more transactions, use a transaction aggregator. TurboTax will walk you through that process.

For more information, see: How do I report Bitcoin or other cryptocurrency as a capital gain?

Re: How to enter cryptocurrency on the downloaded version???

JN_123 — Thu, 18 Feb 2021 16:13:12 GMT

So, if I sold cryptos and purchased the download version of TT, I must mail in my return/forms and I can't file electronically?

Re: How to enter cryptocurrency on the downloaded version???

AshleyLO — Fri, 19 Feb 2021 18:49:00 GMT

@JN_123 You should be able to e-file your return even if you are including crypto. Why do you think that you cannot e-file?

Re: How to enter cryptocurrency on the downloaded version???

JN_123 — Fri, 19 Feb 2021 20:19:08 GMT

@AshleyLO , in this thread, KathrynG3's provided step-by-step instructions regarding entering crypto transactions and she then said, "Mail in the pages along with Form 8453 with the Form 8949 box checked", and "Form 8453 can be found in Open Forms and printed to include with the hard copy details of your transactions."

From many posts, it seems the online version of TT easily handle crypto transactions, but you have to employ a workaround to enter crypto transactions in the downloaded version of TT. Therefore, I interpreted KathrynG3's instructions to mean forms would have to be mailed in if including crypto transactions in the downloaded version of TT.

It's baffling why the two versions are so different. I don't understand why the TT download users can't access an online module to handle crypto transactions and then incorporate the resulting data/forms in their tax file, similarly to how we download and incorporate w2, 1099s, etc.

Re: How to enter cryptocurrency on the downloaded version???

KathrynG3 — Sat, 20 Feb 2021 17:52:57 GMT

The tax return itself can still be electronically filed when Form 8453 with transaction detail is mailed.

In either version, if a large volume of transactions were involved and entering a summary of the transactions into the tax return was preferred, the detail would be mailed to the IRS with Form 8453.

Form 8453 is like a cover page telling the IRS what is being submitted. Your statements with all the transaction details are sorted on Forms 8949 based on the type of transaction, covered or non-covered, and the length of time the asset was held, short-term or long-term. TurboTax automatically sorts the summaries or transactions to Forms 8949 as necessary.

For more information, see: Do I need to fill out or mail in Form 8949?

@JN_123

Re: How to enter cryptocurrency on the downloaded version???

fanfare — Sat, 20 Feb 2021 20:20:28 GMT

If you detail everything on Form 8949, there is nothing to mail.

If you summarize on Form 8949,

then you must mail in the details.

If you do not get a 1099-B because Coinbase or whoever you use does not provide one, your sales category must be C or F.

Re: How to enter cryptocurrency on the downloaded version???

JN_123 — Sat, 20 Feb 2021 22:36:35 GMT

Thank you... 2 questions. For reference, I have 200+ crypto transactions (air drops, rewards, buy/sell, etc.) across 20+ coins in multiple exchanges and wallets. With that in mind...

1. I am currently using the downloaded version of TT. If I continue with this version, do you think it's worth paying another provider to do my crypto taxes and then import those forms into TT to finish my taxes? Or,

2. Buy the online TT version, and let TT do it for me?

Thank you!

Re: How to enter cryptocurrency on the downloaded version???

fanfare — Sun, 21 Feb 2021 00:05:29 GMT

so many people report problems with Online import ...

BUT

you can use TurboTax Online for free until you decide to file.

THEREFOR you can try Online Import and see if it works for you.

I doubt it will work in your complex situation,

but if it does,

you can download the unfinished tax return to your PC, and finish in TurboTax CD/Download version.

Keep in mind only Sell transactions need to be reported.

An exchange from one currency to another is considered a sale of the first currency.