401k and Bitcoin

[DocRaychE]

I withdrew money from my 401k and received it as bitcoin through Square, Inc. I then converted the bitcoin to dollars and withdrew it. I entered the early withdrawal penalty in my return. I received a 1099b for the bitcoin conversion. Do I need to enter that separately if I already entered the 401k withdrawal?

[JohnB5677]

Yes,  you will have to post it as an additional transaction.

You withdrew the money from your 401(k), and it sounds like you entered that correctly. 

You then essentially purchased (exchanged) the cash for cryptocurrency.

When you exchanged it back into dollars it happened outside of the 401(k).

This is a new taxable event and you will have to post the transaction.

Traders report their business expenses on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship).