TurboTax Premier will report cryptocurrency and other investment transactions.
- See the magnifying glass in the upper right hand corner of the screen.
- Type ‘cryptocurrency’ in the magnifying glass and hit <enter>.
- Click on 'jump to cryptocurrency’.
- At the screen Did you have investment income,,,, click Yes.
- At the screen Get ready…, click Continue.
- At the screen Let’s import you tax info, you will be prompted to download cryptocurrency information or enter it a different way.
The IRS considers cryptocurrency to be property. This means that capital gains and losses would be reported on Schedule D / Form 8949.
Like other capital gains and losses, your gain may be short-term or long-term, depending on how long you held the cryptocurrency before selling or exchanging it.
If you owned the cryptocurrency for one year or less before spending or selling it, any profits are typically short-term capital gains, which are taxed at your ordinary income rate.
If you held the cryptocurrency for more than one year, any profits are typically long-term capital gains, subject to long-term capital gains tax rates.
How you report cryptocurrency on your tax return depends on how you got it and how you used it.
If you mine cryptocurrency, you earn taxable income. The dollar value that you receive for goods and services equals the fair market value of the cryptocurrency on the day that you received the cryptocurrency.
If you exchange or trade one type of cryptocurrency for another, you may recognize a capital gain or loss on the exchange.
See also the TurboTax Cryptocurrency Tax Guide
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