Crypto loss makes my tax go up. Why?

jasmineannsmith · ‎April 1, 2025

I exchanged one cryptocurrency for another in Coinbase. Cost basis was $324, proceeds $92, which means a long-term loss of $238. I input the gain/loss report into Turbo tax and my federal taxes went UP by about $200. What's going on? Shouldn't it have gone down?

DawnC · ‎April 1, 2025

Yes, a capital loss should lower your tax bill, not increase it. Are you sure it is not your refund amount that went up? What is on Line 7 of your tax return? Preview Form 1040 in TurboTax Online.

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