Entering Cryptocurrency into TurboTax

[MarilynG1]

It depends on whether your cryptocurrency was considered earned income or treated as a property sale.

To help you determine which of these two possibilities applies to your situation, click on this link.

Click this link for details on How is Crypto Taxed?

[kcrocks74]

I have turbo tax Deluxe, it ask me if I traded crypto in 2021 and I did, but no where can I find where to import my Coinbase file into turbo tax.  I have looked under wage/income - investment income, no where does it say Crypto?

[PatriciaV]

@kcrocks74

Only the TurboTax Online Premier and Self-employed versions allow you to import cryptocurrency. If you are using the CD/Download version, you have two options:

One option is to start a free tax return in TurboTax Premier Online. You don't pay for the return until you file it, so you won't have to pay the Online fee.  Enter (import) your cryptocurrency information in the Crypto section, and then save the .tax file (not PDF).  You can then open the tax file in TurboTax desktop, add the rest of your tax data and file. 

• How do I save my TurboTax Online return as a tax data file? This FAQ will also have instructions on how to continue your return in the TurboTax CD\Download version.
• How do I import from the .txf file?

The other option would be to file using the Online software and get a refund for the desktop program using this link: How do I request a refund for my TurboTax product?

Related information: 

• Your Cryptocurrency Tax Guide
• How do I report earnings or losses from Bitcoin and other cryptocurrency?
• I didn't receive a 1099-MISC, 1099-B, or 1099-K for my Bitcoin or other cryptocurrency earnings, do ...
• How is cryptocurrency like Bitcoin taxed?
• I'm mining Bitcoin, what does that mean for my taxes?

[kcrocks74]

This makes no sense of why TT would do this, but yet on the desktop version it ask if you bought/sold crypto.  Now I have to do my taxes all over again online and now try to request a refund from TT for my deluxe edition.  What could go wrong with this scenio?  

[tlclark46]

where do I enter crypto trades on turbotax premier 2021

[ErnieS0]

To enter cryptocurrency into TurboTax Premier 2021 @tlclark46:

1. Type 1099-b in Search in the upper right
2. Select Jump to 1099-b
3. Say Okay! on Time to kick off your investments!
4. Tap Continue on Relax. We got it.
5. Find your crypto exchange from the list on Let's import your tax info or type it in Search by name or Sigh-in URL.

For more help see How do I import my cryptocurrency transactions into TurboTax?

[huntra6]

I have TurboTax Home and Business 2021 and I followed these instructions but I cannot find the "Cryptocurrency Worksheet" in the list of forms. As others have said, I got a question asking if I sold cryptocurrency, but it didn't ask me about it again. Do I have to enter each sale manually like a stock sale?

[KrisD15]

For TurboTax Desktop you have a couple options. 

Enter the sales in the Investment Income section "Stock, Mutual Funds, Bonds"

You have the option of entering each sale or as a summary. (Answer "Yes" you have a 1099-B, Select "I'll enter a summary for each sales category"

Be sure to separate Short (ONE YEAR OR LESS) and Long Term (MORE THAN ONE YEAR) gains. 

If you are e-filing, paper-mail Form 8453 with the statement or 1099-B  you have showing the transactions, within 3 days of an acknowledgement of the acceptance of your e-filed Federal Return. Check the box on Form 8453 for Form 8949 (the last option)

Mail Form 8453 to:

Internal Revenue Service

Attn: Shipping and Receiving, 0254

Receipt and Control Branch

Austin, TX 73344-0254 

(If you are mailing in a paper 1040, include the statement only with the paper return)

Be sure to separate any earned income (Mining, Air Drops) from trades. Enter any "Earned Income" on your Schedule C. 

TurboTax (Online) does have a separate section for reporting Virtual Currency trades, but that is just a convenience for the customer. It all goes to Capital Gains/Loss. 

DESKTOP:

Personal 

Personal Income 

I'll choose what I work on

Scroll down to "Investment Income"

"Stocks, Mutual Funds, Bonds, Other" START

Did you get 1099-B?"   NO   

Select "I'll enter a summary for each sales category" 

If you have both Short Term and Long Term, you will need to enter each on a separate screen. 

Form 8453

I also found this suggestion which might work for 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."
 

"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."

[miralomagirl]

The directions given for entering cryptocurrency into Turbo Tax do not seem to match the Turbo Tax Home and Business for 2021.  Could you provide those steps?

Thank you

[JamesG1]

To import a .txt file into TurboTax Desktop, follow these steps:

• Import .txf file into Turbotax Desktop:  File --> Import --> From Accounting Software --> Select Other Financial Software (TXF) file --> Browse .txf file and 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.

[Tom_II]

I have Turbotax Deluxe, I checked that I have invested in Crypto.  I can not find where to enter my data.  Do I need to upgrade my tax program?  If so do I get a refund ($100.00) on my Deluxe program?

[rsbunn]

I have the MAC desktop version of TurboTax 21 premier.  There is no cryptocurrency section under Wages&Income > Investment Income in the software.  All the help topics point to a cryptocurrency section.   Not there.  Also, Coinbase and CoinTracker are not listed under imports, again, help topics say data can be imported from those sites.  I tried adding Coinbase manually into a Form 1099-B but after adding Coinbase name and hitting "continue" thing happened.  It kept going back to the edit page with no way to add the financial data.  Right now, I have no way to enter cryptocurrency sales.  I am very disappointed in TurboTax.

[RobertB4444]

@Tom_II  You will need to upgrade to Premiere in order to enter your cryptocurrency transactions.  If you click the button on your software to upgrade you will only be charged an upgrade fee which should be the cost difference between the deluxe that you purchased and the premiere that you are upgrading to.

[rsbunn]

There should be no difference in capabilities between the online version and the desktop version.  Having different versions is poor business management.  

[jadelu4200]

I have the desktop version of TurboTax Premium.  I can't find any Cryptocurrency worksheet when I search in Open Form as PattiF suggested.  This does not work. TurboTax is really difficult to use when it comes to reporting for crypto.