How to enter cryptocurrency on the downloaded version???

[Mauricio6277]

So there is no way to do this on the desktop version. What a waste of money..

[Anonymous]

What if I have the desktop version why don't I have the option for crypto import. That is dumb why wouldn't that feature be on the desktop version. 

[Alpha20]

Alright here is what I did:

1-Go online to TurboTax and choose premier TurboTax .

2-fill in all your info.

3-Add your forms"W-2's etc".

4-On income section add your stocks or Crypto info "if you can't see your exchange you can add your CSV file"

5-After you finish everything DO NOT E-FILE ONLINE.

Instead head to the TaxTools on the left side of the page. click Tools then

"Save your 2021 return to your computer".

6-After you saved your .Tax file from the web head to Tubotax desktop and click on the File=Open Tax Return.

7-Locate your .Tax file you downloaded from TurboTax online.

8-just double check all the info you entered online.

9-E-file your taxes through the Desktop program.

That's it. you are done.

Few notes:

A-My only issue was some CSV files are not supported due to the way it was written I guess. 

B-On the desktop turbotax you can choose your 2019 income if it's higher than your 2021 income for higher return. I could NOT locate that on the online turbotax .

SO..

If you want to do this on the desktop follow all steps above BUT before you E-file click on the Federal Taxes then Wages&Income and Revisit all steps there till you enter 2019 income then the program will let you choose between 2021 and 2019 income whichever is greater to claim.

The form to claim 2019 income is Form1040 lines 25-33.I hope this helps someone because it was so confusing for me.

[JoeFM]

Still much struggle to file taxable crypto transactions on Desktop Turbotax Premier.

Questions for support team:

1) Crypto.com is not supported for data import.   However they sent me form 8049 and schedule D.  How do I manually enter this?

2) Which 1099 (INT, B, MISC, G, etc) must be used to report crypto rewards (i.e. interest earnings)

Solved.  See my other post

[Anonymous]

Did you get a CSV file to import? If so you may want to use Turbo Tax online version to import since desktop version is useless for crypto. 

[Anonymous]

I was able to get the Robinhood crypto transactions to import into the desktop version but Coinbase and other did not work. 

Note: to import the Robinhood information you will see 2 import brokerage names with "Robinhood" names so you will need to login and import both one is for stocks other one is for crypto. 

[JoeFM · Accepted solution]

Alright.  I was able to trick Turbotax Desktop (download) version into importing lots of crypto Capital gains/loses transactions without using the Online version.

I did this for Crypto.com transactions, but it works for any institution.   Excel or any spreadsheet software will be needed to prepare the data.  This is how I did it:

1) Created a .csv file with all  transactions using the format shown at http://www.easytxf.com/upload#create

2) Once the .csv file is ready (in my case with dozens of buy/sell transactions for 2021), used http://www.easytxf.com/upload#create to convert the .csv file into .txf file

3) Imported .txf file into Turbotax Desktop:  File --> Import --> From Accounting Software --> Select Other Financial Software (TXF) file --> Browse .txf file and Import now

4) Done.  A 1099-B with all Crypto transactions is now created.   This entry can now be edited to include the account details (In my case I named it Crypto.com) .  Each transaction can be edited as well.

Although this is not a one click method, It saved me from having to enter 80 or so transactions one at the time.  Also I did not need to create a parallel filing into the online version, which kind of defeats the purpose of using the desktop version if one does not want personal tax information flying through the internet.

To report crypto Income (rewards, interest, etc) I just used the total amount for the year and entered into Miscellaneous Income as "Other Reportable Income" as recommended in this forum in a previous post.  This was quick as it is just one entry.

[KenkNYC]

This does not work.  No Cryptocurrency worksheet is available in the download version.

[cityaz]

How do i enter crypto currency transactions in turbo tax premier download. I am in stock sales but don't see any mention of crypto sales.  Do I enter individual transactions as regular stock sales or is there a special section for crypto sales.

[andrewhou]

Thanks so much, this worked and saved me a bunch if time! 

[liliasergey]

Hi JoeFM,

I do not think you are right about how to enter the crypto interest. You said enter the total amount for the year.

Let's say you had interest every month on 10 altcoins. There are 120 transactions. You need to enter it somewhere. When you sell those 10 altcoins next year (for example) it will be again 120 transactions to report because each month every altcoins had a different cost base. Proof of the cost base is your tax report for this year (120 transactions I'm talking about).

Maybe I'm wrong and you need to enter just 10 selling transactions next year (because of 10 different altcoins). In this case this year you need to enter at least 10 different amounts of interest, not just one total amount as you said.

Do not ask me how to enter it 🙂    I don't know 😟   That is why I 'm on this forum  searching for a solution.

[fanfare]

why are you reporting interest on Schedule D?

Report your total interest or dividends for the year from one party in one line on Schedule B.

Schedule D is only for SELL transactions.

[Basement_Buzzard]

That is how I did it. Entered crypto sold for capital gains taxes...same as stocks.

Be aware that the latest TT upgrade has altered (eliminated) the tax on ordinary crypto income per the outcome the ITS had with the US tax court. It is no longer taxable. The IRS tried taxing crypto as both currency and property. It is now taxed only as property.

[Basement_Buzzard]

If the "interest" was paid in crypto instead of cash (i.e. mining or rewards) then under the recent court ruling this is no longer taxable. Only crypto sold is taxable (capital gains). The IRS can't tax it as both currency & property at the same time. It the interest was paid in cash, then it is taxable the same as any other interest income.

[JoeFM]

@liliasergey 

I am not a tax professional, but from what I read you have two potential taxable events when dealing with Crypto transactions and it is similar to trading stocks/dividends:

1) Receiving Crypto as income (interest, rewards, mining, etc)

2) Buy/Sell Crypto which is a Capital Gain/Losses event

For Crypto it is key to keep track of the specific coin value in USD at the time it is either traded or received as reward, income, etc. 

For example.  Lets say you loaned me one Bitcoin in May of last year.   I gave it back to in July and gave you 1 Ethereum as payment for the loan. Then, the USD value of the Ethereum must be reported as income.  If multiple loans and interest payments took place on monthly basis, then you would just report the total interest earned amount (just like it is done for interest from CDs, dividends, etc)

Then, lets say you decide to sell you Ethereum (you got as income) on December.   Now you have a Capital Gain/Loss event.   You would have to report the USD value when you got the coin (cost basis) and then the USD value when you sold it.   If the USD value of Ethereum dropped from July to December, then you would report a capital loss for your taxes.  

If you do not sell your Ethereum, then you would only report it as income (but it is key to keep track of the USD value when you got it, so when you sell it next year, years, etc, you can file the Capital Gains/Loss event in your taxes.

@Basement_Buzzard 

Yes.  I saw there was a court case in which mining was ruled not to be reported as income.   I guess the crypto tax rules are not quite set yet.   If I had thousands of dollars in crypto rewards and interest, I would probably get a professional opinion.   Since I have pocket change crypto income, I will just report it as income to avoid an audit (been there done that)