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KrisD15,
you mean paper-mail to the IRS the form 8453, and the brokerage statement 1099-B with the detailed transactions, and the TurboTax-generated form 8949 with the transaction summaries?
Correct?
Yes, that is correct. Please read this Turbo Tax post written by EdwardK for more detailed instruction.
I tried to enter the summary of crypto transactions under Investment income (1099-B) in TT desktop:
- If I enter the Crypto brokerage name, Turbotax does not let me input any proceeds/costs numbers. I click "continue" but it freezes there...
- If I enter manually the proceed/cost summaries, then it doesn't let me put a Financial institution name.
Does this make sense? I think Turbotax should allow us to enter the brokerage name somehow. This is so screwed up...
@kostopst agree TT is messed up w/ Crypto reporting since the Desktop only supports using .txf file imports. Their trying to get people to use their dumb online versions since it supports .CSV apparently. What crypto exchange are using? If your exchange provides a .CSV file, I found you can actually do the following below, to create a .tax file to import it into TT. Not sure if it works, but have seen it mentioned. Maybe this below will help you.
If all you have is .CSV you can try this:
Start a TurboTax online account, import your cryptocurrency data and then save the .tax file to import into your desktop version. To do this, while you are in your tax return, click Tax Tools on the left menu. Click on Tools. In the pop-up menu, click on Save your 2021 return to your computer. Then import into your desktop version.
If have a .TXF file do this:
Import it into TT via the File/Import\Accounting File. Most coin tracking apps like CoinTracker will generate this file using your exchanges .CSV file like Coinbase Pro. I use Coinbase pro and Cointracker supports reporting up to 3000 Coinbase transactions for free to a .txf file. This is what I used for filing on the desktop version. You can adjust any of the transactions once there imported if some of the fees are not computed correctly. I also noticed you have to go through manually and add whether your short/long transaction was reported or not. It's all just a pain in a#$ to report this stuff especially if your an active trader. Maybe someday it'll get better, but I doubt it since it seems like every year, it just gets worse 😃
Hope this helps, Cheers.
this worked for me - thank you so much!
You actually do not have to mark each transaction as not reported to the IRS. To avoid this, open form 8949 and in part 1, check box C. That will take care of all the transactions.
Great. Thank you. Worked perfectly !!
That has to be the dumbest feature since the technology is there since the Online Version has it. THE DOWNLOAD SHOULD HAVE IT TOO!!!
Token Tax isn't free anymore. They want to charge me $200 for the form.
Note it seems that ONLY the TT ONLINE version suppots Crypto.
TT desktop does not have the features. This is as of Feb 27, 2022
So to use Token Tax there's a big fee. How do you get around that?
You can get around using Token Tax by looking for other services. Several services will format your crypto @Anonymous.
You can upload your transactions as a TXF file.
Last you can enter your sales individually or enter a summary of each sales category and mail a statement of your transactions to the IRS along with your filing.
This is incorrect. There is NO crypto option in the TurboTax Deluxe desktop version.
I really hope TT gets it's act together re: crypto. The desktop version should make crypto filing as easy to do as taxes, and make it clear (upfront) about the file formats required. We used CrytoTrader.tax - which generated the .txf file format for us. Here are their instructions (with pictures...which helps me greatly) on how to upload ANY .txf file to TT's desktop version: https://help.cryptotrader.tax/en/articles/2657181-upload-your-tax-report-turbotax-desktop-cd-version
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