Crypto Currency reporting issue - long term gain. Please help.

kmjgoon · ‎February 1, 2022

Dear Professionals.

I will be very grateful if you can help me. I have two questions.

I am a Youtuber, I use TurboTax and I use Cryptotrader Tax to report crypto trading.

My youtube income 2021 was $51,288 - I am single.

1. My total crypto trading gain in 2021 was short-term $13,217 and long-term $31,596. I did my research and my long-term gain is not supposed to be taxed, but when I uploaded csv to turbo tax, it says I owed $7,917.

Is this correct? I thought I will only be taxed from my short term gain.

2. I traded and gained donations from Crypto.com.(as an influencer) I imported csv from Crypto.com and I also got 1099-MISC from them. When I typed 1099-MISC in after I uploaded csv, my tax went up which means my tax for Crypto.com was overlapped (I am paying it twice) Is it ok if just keep 1099-MISC and not import Crypto.com CSV file?

Please help me.

Thanks.

JamesG1 · ‎February 2, 2022

1) You uploaded the csv file into Federal 1040 Schedule D / form 8949. I would expect long term capital gains to be taxed at the capital gains tax rate. The capital gains tax rates for 2021 are 0%, 15% and 20% and depends upon your adjusted gross income (AGI) of your tax return. See here.

2) I do not know whether the 1099-MISC and the data on the csv duplicated income. You will have to compare the detail of the two if you have detail for the 1099-MISC income.

Is the csv file also a 1099-B broker statement that will be reported to the IRS? I am assuming that it is. Your records may give you more guidance. If the csv is also a 1099-B broker statement, the IRS will be looking for both forms of income to be reported.

What box was 1099-MISC income reported in? Was there Federal withholding reported on the 1099-MISC? I would expect you tax burden to go up when you added the 1099-MISC income if there was no corresponding Federal withholding reported.

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View solution in original post

JamesG1 · ‎February 2, 2022

1) You uploaded the csv file into Federal 1040 Schedule D / form 8949. I would expect long term capital gains to be taxed at the capital gains tax rate. The capital gains tax rates for 2021 are 0%, 15% and 20% and depends upon your adjusted gross income (AGI) of your tax return. See here.

2) I do not know whether the 1099-MISC and the data on the csv duplicated income. You will have to compare the detail of the two if you have detail for the 1099-MISC income.

Is the csv file also a 1099-B broker statement that will be reported to the IRS? I am assuming that it is. Your records may give you more guidance. If the csv is also a 1099-B broker statement, the IRS will be looking for both forms of income to be reported.

What box was 1099-MISC income reported in? Was there Federal withholding reported on the 1099-MISC? I would expect you tax burden to go up when you added the 1099-MISC income if there was no corresponding Federal withholding reported.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

kmjgoon · ‎February 2, 2022

Thanks for your response.

I just figured out everything. I was missing something important about capital gain.

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Crypto Currency reporting issue - long term gain. Please help.