Crypto currency

[kgraghu]

I don't see any screen to add or upload crypto currency transactions after selecting "Yes" to "Did you have any financial interest in digital asset in 2022.  After "Yes", it jumps to K1 check screen.  Where to enter it? Is this a bug?

[HelenC12]

If you buy, sell or exchange crypto in a non-retirement account, you'll face capital gains or losses. Like other investments taxed by the IRS, your gain or loss 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.

There are three ways to enter your crypto in TurboTax:

• Import your info directly from your crypto source (this is what we recommend, though it's not available for TurboTax CD/Download)
• Upload a CSV file of your crypto transactions
• Enter your transactions manually

How to import your crypto

How to upload a CSV

How to enter your crypto manually in TurboTax Online

How to enter your crypto manually in TurboTax CD/Download

[kgraghu]

When there is no screen pop ups for import or upload or manual enter, how to do any of these actions?  It goes to Schedule K1 section, when I select "Yes" for Crypto Currency.

[ErnieS0]

The IRS treats cryptocurrency sales as sales of property, almost identical to the sale of stocks.

Here’s how to enter your crypto transactions in TurboTax Home & Business:

1. Tab the Personal tab, then Personal Income
2. Go to Stocks, Mutual Funds, Bonds, Other in Investment Income
3. On “Did you sell any investments in 2022?” say YES
4. On “Did you get a 1099-B or a brokerage statement for these sales?” answer YES or NO. If you received a Form 1099-B you can try importing your data. Otherwise, type it in yourself.
5. You’ll come to the option to enter a summary of your sales or enter each individual transaction. If you enter a summary, you’ll have to send the IRS a brokerage statement or spreadsheet listing your transactions.

[kgraghu]

Thank  you. Please see the second screenshot after I click Continue with Yes button selected.

This is what I am getting after clicking Yes for Crypto Currency. I don't see “Did you get a 1099-B or a brokerage statement for these sales?”. I am using Home & Business download version. I am looking for option to  upload CSV file

This is what I am getting after clicking Yes for Crypto currency

[MarilynG1]

In TurboTax Desktop for Home & Business, in the Investments section under Personal, choose 'Add a Sale'.  NO to received a 1099-B.  Choose 'Ill enter a summary' on the next screen.

You will need to enter your Total Proceeds and Cost Basis and enter the amounts on the next screen and choose either Long Term or Short Term.  If you have both, enter each as separate transactions. 

When filing your return you will be instructed to mail your 1099-B (in your case your CSV file) along with Form 8453 and Form 8949.

If you use TurboTax Online, you can 'drag and drop' a CSV file of your transactions into your return.  

@kgraghu 

[kgraghu]

Thank you! It looks like "Yes" for Crypto and entering crypto transactions are in two different sections, I guess both screens are unrelated. I didn't receive either form 1099-B or form 8949 , I can send 8453 and CSV file.

According to this link, CSV option is in Download version too, but I guess it is not true.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/cryptocurrency/import-cryptocurrency-tra...

How to enter your crypto manually in TurboTax CD/Download

1. Open TurboTax and open your return
2. Go to Federal Taxes, then Wages & Income
3. On the Your 2022 Income Summary screen, under Investment Income, select Start or Update next to Stocks, Mutual Funds, Bonds, Other
4. On the Did you sell any of these investments in 2022? screen, select Yes
   • You need to use TurboTax Premier or Home & Business to do this. If you're using a different product, you'll be able to change products.
5. Select CSV, 1099-B, 1099-K, Gain/Loss Report on the OK, let's start with one investment type screen
6. On the What's the name of the crypto service you used? screen, select your crypto service from the dropdown and Continue
7. Select Type it in myself on the Uploading your crypto CSV file makes taxes easier screen
8. Answer the questions and continue through the screens

[ErnieS0]

You can import a CSV file into TurboTax CD/Download by first converting it into a TXF file.

To import your TXF file, tap File in the top left menu (the black banner)
 

1. Select Import > From Accounting Software
2. On the screen "Choose a Program To Import From, select Other Financial Software (TXF file)

@kgraghu 

[kgraghu]

Thank you! The TXF format has only few fields compares to CSV format. Is that ok to import lesser fields for crypto airdrop/stake transactions?

[GeorgeM777 · Accepted solution]

Yes, it should not matter provided your txf file has information that will populate the following fields all of which appear in TurboTax online: Description, Date sold or disposed, Sales section, Proceeds, Cost basis, and Gain/loss.  If your txf does not contain at least the aforementioned fields, the import should still take place; however, you will likely have to add the missing information.  TurboTax CD/download has comparable fields and therefore, to the extent any such information is missing, you will have to manually enter such information.  

@kgraghu  

[kgraghu]

Thank you for the clarification! I guess the TXF template is applicable for capital gain income related transactions.  All my transactions are ordinary income transactions (airdrop/stake) and comes under 1099-Misc section. So, I believe I don't need to import TXF for these transactions. Let me know if I am wrong.

[MarilynG1 · Accepted solution]

Yes, For tax purposes, crypto is either considered earned income or treated as property sales (investment sales).

If you didn't receive a 1099-Misc, you can report it as 'Other Taxable Income'.  Save documentation for amounts reported.

On the 'Income' topics page, scroll all the way down to 'Other Miscellaneous Income, 1099-A, 1099-C..'

On the next page, scroll all the way down to 'Other Reportable Income', and you can enter a description and amount.  You won't need to attach/import anything. 

Here's more info on How is Crypto Taxed?

@kgraghu