Crypto buying and selling

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I bought and sold cryptocurrency (Bitcoin and Ethereum and others) last year (2021) and my broker didn't send me any statements for taxes. They claimed I did less than $600.

1) Do I need to report the sale to IRS like a stock, but I have no brokerage statement?

2) There is a question on the taxes that did I trade crypto, do I need to check yes? What does that trigger from IRS?

ColeenD3Answer

Alumni - Intuit

You always have to report all your income, so yes, you must report the sale. If you bought but did not sell, that does not have to be reported. The issuer of the reporting form is not required to send it if it is under $600. There is no tax law that says that you are not required to report it if it is under $600.

You must answer yes, that you traded crypto. Not reporting income is tax fraud.

ColeenD3

Alumni - Intuit

Regardless of whether or not you got a reporting document, you are required to report your income.

You may receive various types of forms, including a 1099-K, 1099-B, and/or a gain and loss report.

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, and Wages & Income
Scroll down and select Show more next to Investment Income (or Investments and Savings)
Select Start or Revisit next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
Follow the instructions and we'll calculate the gain or loss from the sale

There's an upload limit of 4,000 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.

Crypto Currency Tax Guide

edmond_meAuthor

Level 2

So just to be clear, I have to report the buy/sale even though there are no documents from the broker and their email stated that because the volume is less than $600 they are not obligated. I STILL have to report it to the IRS?

Also, second part of that question, there is a question whether I traded crypto and I have to respond yes? That came up as a error during error review, that I had not replied to that question. What does that trigger with IRS?