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Level 2
posted Feb 1, 2022 11:44:44 PM

Crypto Currency reporting issue - long term gain. Please help.

Dear Professionals. 
I will be very grateful if you can help me. I have two questions.
I am a Youtuber,  I use TurboTax  and I use Cryptotrader Tax to report crypto trading.
My youtube income 2021 was $51,288 - I am single.  
 
1. My total crypto trading gain in 2021 was short-term $13,217 and long-term $31,596. I did my research and my long-term gain is not supposed to be taxed, but when I uploaded csv to turbo tax, it says I owed $7,917.
Is this correct? I thought I will only be taxed from my short term gain.
 
2. I traded and gained donations from Crypto.com.(as an influencer) I imported csv from Crypto.com and I also got 1099-MISC from them. When I typed 1099-MISC in after I uploaded csv, my tax went up which means my tax for Crypto.com was overlapped (I am paying it twice) Is it ok if just keep 1099-MISC and not import Crypto.com CSV file?
 
 
Please help me.
 
Thanks.

0 2 304
1 Best answer
Expert Alumni
Feb 2, 2022 5:29:32 AM

1) You uploaded the csv file into Federal 1040 Schedule D / form 8949.  I would expect long term capital gains to be taxed at the capital gains tax rate.  The capital gains tax rates for 2021 are 0%, 15% and 20% and depends upon your adjusted gross income (AGI) of your tax return.  See here.

 

2)  I do not know whether the 1099-MISC and the data on the csv duplicated income.  You will have to compare the detail of the two if you have detail for the 1099-MISC income. 

 

Is the csv file also a 1099-B broker statement that will be reported to the IRS?  I am assuming that it is.  Your records may give you more guidance.  If the csv is also a 1099-B broker statement, the IRS will be looking for both forms of income to be reported.

 

What box was 1099-MISC income reported in?  Was there Federal withholding reported on the 1099-MISC?  I would expect you tax burden to go up when you added the 1099-MISC income if there was no corresponding Federal withholding reported.

 

 

2 Replies
Expert Alumni
Feb 2, 2022 5:29:32 AM

1) You uploaded the csv file into Federal 1040 Schedule D / form 8949.  I would expect long term capital gains to be taxed at the capital gains tax rate.  The capital gains tax rates for 2021 are 0%, 15% and 20% and depends upon your adjusted gross income (AGI) of your tax return.  See here.

 

2)  I do not know whether the 1099-MISC and the data on the csv duplicated income.  You will have to compare the detail of the two if you have detail for the 1099-MISC income. 

 

Is the csv file also a 1099-B broker statement that will be reported to the IRS?  I am assuming that it is.  Your records may give you more guidance.  If the csv is also a 1099-B broker statement, the IRS will be looking for both forms of income to be reported.

 

What box was 1099-MISC income reported in?  Was there Federal withholding reported on the 1099-MISC?  I would expect you tax burden to go up when you added the 1099-MISC income if there was no corresponding Federal withholding reported.

 

 

Level 2
Feb 2, 2022 9:08:36 AM

Thanks for your response.

 

I just figured out everything. I was missing something important about capital gain.