How to report cryptocurrency from coinbase in turbotax premier software ?

[taxpayer4]

I bought turbotax premier dvd from Costco. Last year I moved bitcoin from coinbase to binance. I guess which is a taxable event, and I need to show it in the tax (correct me if i'm wrong).

Now where do I enter this crypto information in Turbotax software ? I don't see anywhere about the cryptocurrency.

[Cindy0H · Accepted solution]

I am a little unclear. You say you bought the DVD, but your information says you are in TurboTax Online. For TurboTax Online read the following instructions below the investment sales (the FAQ). For the download/cd version, you will enter it as stock sales.

Cryptocurrency sold, exchanged, spent or converted, is treated as a sale of a property.

Like property sales or the sale of stock, any gain or loss from the sale or trade of cryptocurrency is reported as a capital gain or loss. If you buy and sell it within 12 months, it’s treated as a short-term capital gain. If you hold it for over 12 months, it’s taxed at the lower, long-term, capital gain rates.

Follow these steps in the Premier Edition:

1. Open (continue) your return in TurboTax.
2. In the search box, search for investment sales and then select the "Jump to" link in the search results.
3. Answer Yes to the question Did you sell any investments?  (If you land on the Here's the investment sales we have so far screen, select Add More Sales.)
4. Continue following the onscreen instructions and we'll calculate the gain or loss from the sale. Note: There isn't a specific section for digital currency, but if you answer the questions related to sales, we'll be able to do the proper calculation.

OR if the jump-to link is not working

1. Select the Federal tab
2. Select Wages and Income 
3. Select Investment Income
4. You'll list each trade/sale in the Stocks, Mutual funds, Bonds, Other interview 
5. When asked Did you get a 1099-B or a brokerage statement for these sales? select No 
6. When asked to Choose the type of investment you sold select Everything else
7. Translate proceeds of each transfer into US dollars at the time of the transfer
8. Repeat for each

https://ttlc.intuit.com/replies/6468652

[joejohn26]

This is the first year that I am doing taxes for my son who has a coinbase account.  I have the DVD version of TT and there's no way of importing data from coinbase directly into TT.  They provide a Turbo Tax Gain/Loss Report with transactions but there's no way to directly import it into TT.  I found a website EasyTXF - Easily Convert CSV Files to TurboTax TXF that converts CSV into TXF format and that saved me the hassle of typing each transaction manually.  Only caveat is that you need to edit the Report file that you get from Coinbase in the format that they like and rename some of the headers in the CSV file.  You can then import it in TT via the import feature and select "other accounting software option".   That will generate a 1099-B equivalent in TT for Coinbase.  You can tweak transactions if you'd like in TT after that.  Hope this helps those who are struggling to use the DVD version to enter crypto. 

[Crypto_Dave]

I think this is BS that TT doesn't include this in the downloadable product but includes this in their online offering.  This was the sole reason for purchasing the "Premier" product.  I could have saved the $$ and just used deluxe.  For crypto assets/trades it is completely unreasonable to have to manually add them in as instructed.  Another case of sophisticated seller / unknowledgeable buyer...

Thanks joejohn26 & harbinger910, definitely better help than TT "support"!

[AmyC]

The desktop version does not have crypto in the wording and requires different handling. It is still under Investment Income. Select Start next to Stocks, Mutual Funds, Bonds, other. Additionally, if you have a foreign wallet, that is considered a foreign asset and may require filing Form 8938. See About Form 8938, Statement of Specified Foreign Financial Assets,

The IRS expects each transaction looked at in case of any of the transactions were loss due to personal use, such as lunch at Starbucks or payments towards bills, etc. Loss on use of personal property should not be included on your return.

Select an entry option:

1. Enter the total short term on one line and total long term on the next line. Mail in a copy of your 1099-B. Very easy and the program gives you the instructions.

2. You may be able to convert your .csv file to a .txf file and upload it into TurboTax Desktop version.

Follow these steps outlined by JoeFM here. 

• Create a .csv file with all transactions using the format shown at Easytxf.
• Used Easytxf to convert the .csv file into .txf file.
• Import .txf file into Turbotax Desktop:  File / Import / From Accounting Software / Other Financial Software (TXF) file /  Continue / Choose a File to Import / Import now.
• A 1099-B with all Crypto transactions is now created.   This entry can now be edited to include the account details.  Each transaction can be edited as well.

3 .You can make your own csv file. Manually change your columns to 5 columns in this order:

1. Purchase date
2. Date sold
3. Proceeds
4. Cost basis
5. Currency name

Then you can upload the document and select 1099-B as the type.

The last option is the easiest if you are already following IRS rules. See my post here with IRS expectations.

@Crypto_Dave

[txmet]

step 6 for the dvd instructions doesnt exist.  it simply asks to fill in cost and proceeds.  there is no everything else . is there a way to upload the CSV file from coinbase into the DESKTOP verion of turbotax. I will not use the online version.  to me its a security risk having this online with all the data breaches in the world

[VolvoGirl]

Not sure if you can in the Desktop program.  So if you can't,

All the Desktop programs have the same forms. You just get more help and guidance in the higher versions. So you can use a lower version like Deluxe.

You can import crypto into Online Premier and download the .tax2022 file to open in the Desktop program.  Download the .tax2022 file for free

How do I save my TurboTax Online return as a tax data file?

Then to continue in the desktop version see this…….

https://ttlc.intuit.com/community/choosing-a-product/help/how-do-i-switch-from-turbotax-online-to-th...