How to enter cryptocurrency on the downloaded version???

[JN_123]

@AshleyLO , in this thread, KathrynG3's provided step-by-step instructions regarding entering crypto transactions and she then said, "Mail in the pages along with Form 8453 with the Form 8949 box checked", and "Form 8453 can be found in Open Forms and printed to include with the hard copy details of your transactions."

From many posts, it seems the online version of TT easily handle crypto transactions, but you have to employ a workaround to enter crypto transactions in the downloaded version of TT.  Therefore, I interpreted KathrynG3's instructions to mean forms would have to be mailed in if including crypto transactions in the downloaded version of TT.

It's baffling why the two versions are so different.  I don't understand why the TT download users can't access an online module to handle crypto transactions and then incorporate the resulting data/forms in their tax file, similarly to how we download and incorporate w2, 1099s, etc.

[KathrynG3]

The tax return itself can still be electronically filed when Form 8453 with transaction detail is mailed. 

In either version, if a large volume of transactions were involved and entering a summary of the transactions into the tax return was preferred, the detail would be mailed to the IRS with Form 8453.

Form 8453 is like a cover page telling the IRS what is being submitted. Your statements with all the transaction details are sorted on Forms 8949 based on the type of transaction, covered or non-covered, and the length of time the asset was held, short-term or long-term. TurboTax automatically sorts the summaries or transactions to Forms 8949 as necessary.

For more information, see: Do I need to fill out or mail in Form 8949?

@JN_123

[fanfare]

If you detail everything on Form 8949, there is nothing to mail.

If you summarize on Form 8949,

then you must mail in the details.

If you do not get a 1099-B because Coinbase or whoever you use does not provide one, your sales category must be C or F.

[JN_123]

Thank you... 2 questions.  For reference, I have 200+ crypto transactions (air drops, rewards, buy/sell, etc.) across 20+ coins in multiple exchanges and wallets.  With that in mind...

1.  I am currently using the downloaded version of TT.  If I continue with this version, do you think it's worth paying another provider to do my crypto taxes and then import those forms into TT to finish my taxes? Or,

2.  Buy the online TT version, and let TT do it for me?

Thank you!

[fanfare]

so many people report problems with Online import ...

BUT

you can use TurboTax Online for free until you decide to file.

THEREFOR you can try Online Import and see if it works for you.

I doubt it will work in your complex situation,

but if it does, 

you can download the unfinished tax return to your PC, and finish in TurboTax CD/Download version.

Keep in mind only Sell transactions need to be reported.

An exchange from one currency to another is considered a sale of the first currency.

[KathrynG3]

Aggregating your cryptocurrency activity from multiple exchanges and wallets would be useful in complex situations. TurboTax does partner with CoinTracker with an export feature. Go to 2020 Coin Tracker Pricing Plans where TurboTax Export is listed at all levels.

Since you have already purchased TurboTax CD/Download, you can convert it to TurboTax Online, if you prefer. For more information, see: How do I switch from TurboTax CD/Download to TurboTax Online?

@JN_123

[sbsnyder]

All of these instructions from Turbo Tax are showing a way to access a Cryptocurrency link or page -- and there IS NONE. I've searched it, gone through the Wages and Income then Stocks Bonds Mutual Funds links -- none of it gives an option to enter crypto. I do not have a 1099 because we didn't make money. We simply traded. Where is this entered? I've spoken with multiple representatives who link me back to 2018 and 2019 videos. I need some current help entering crypto trades, please. 

[KathrynG3]

Where your cryptocurrency transactions are entered depend on why you have it. If it was earned or if was an investment affect how it is taxed.

For trades or conversions from one cryptocurrency to another, yes, you are correct, this should be reported regardless if any forms were received.

While TurboTax Online has a dedicated section in Investment Income for Cryptocurrency reporting, TurboTax CD/Download does not. The trades can still be reported in the Stocks Bonds Mutual Funds link.

To do this in TurboTax CD/Download, follow these steps:

• From the PERSONAL tab, scroll to Investment Income and select Update by Stocks, Mutual Funds, Bonds, Other.
• Did you get a 1099-B or a brokerage statement for these sales? Answer No.

  • If you only had a few transactions, select I'll enter one sale at a time.

  • If you had hundreds or thousands of trades, select I'll enter a summary for each sales category. I strongly encourage using an aggregator service. Several different ones are supported by TurboTax and would help simplify reporting.
     

  • In either case, these transactions must be identified by their holding period, short-term (C), which is 1 year or less, or long-term (F), which is more than 1 year. The codes refer to which box will be checked when reporting these details on Form 8949 to the IRS. 

For more information including additional cryptocurrency how-to article links, see: I didn’t receive a 1099-MISC, 1099-B, or 1099-K for my Bitcoin or other cryptocurrency earnings, do ...

In case you are interested, see: How do I switch from TurboTax CD/Download to TurboTax Online?

@sbsnyder

[nassux]

does each transaction have to be entered manually or is the csv file good enough

[DianeW777]

If your file is not being imported as you expect, then you can enter the transactions in TurboTax Desktop. 

• In TurboTax Desktop you will enter Cryptocurrency as a Stock, Mutual Funds, Bonds, Other, under Investment Income

Be prepared with the following information:

• Service name (examples: Coinbase)
• Asset name (examples: Bitcoin, Ethereum)
• Date of purchase
• Cost basis
• Date of sale
• Sale proceeds

You can do a summary of long term and then short term combinations (long term holding is more than one year, short term holding is one year or less).  Make one entry for each. You can then send the worksheets or statement with Form 8949 after your return is accepted, attached to Form 8453.

• Long term is a holding period of more than one year and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
• Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)

Columns should be similar to Form 8949 (grouped together by holding period): 

• Description
• Date Acquired
• Date Sold
• Proceeds
• Cost
• Gain/Loss
  • Sale date can be the last date a sale occurred or 12/31/2020 
  • Purchase date can be 'Various' 
  • These worksheet can be filed after your tax return is accepted.  

If you are e-filing your tax return, then mail your statements along with Form 8453 to: 

Internal Revenue Service

Attn: Shipping and Receiving, 0254 

Receipt and Control Branch 

Austin, TX 73344-0254

If you need a blank Form 8453, you can download this pdf, enter your address information and check the box for Form 8949 (this form is really just a cover sheet). 

[emathis409]

How do I answer the 1040 form question about whether I've received, sent, sold, etc any virtual currency? That checkbox is disabled and I can't find where on the software to check it as YES.  I have the downloaded version.

[KatrinaLO]

If you are having issues and need assistance, please contact customer support. Please see the Customer Support phone number here. If you would like to reach out through our website, please see the TurboTax FAQ below for contact information: https://support.turbotax.intuit.com/contact/

[yoyogabbagabba]

I found out how to enter cryptocurrency transactions into TurboTax 2019 Premier Desktop Version.

• On TurboTax, first click Personal Income -> I’ll choose what I work on -> Investment income -> Stocks, mutual funds, bonds and other.
• Click “Yes” when asked if you have you sold any investments.
• Then click “Yes” when asked if you received a 1099 (even if your exchanges didn’t give you one).
• Scroll down below the "financial partners" window and select “I’ll import a TXF form.”
• Then select the TXF file you saved from TokenTax or whatever service you used. I used bitcoin.tax and successfully uploaded that.

I successfully did this today for ammending something, maybe last year this didn't work, I am not sure.

[Mmc]

The 1099B crypto form doesn’t have the digital ID, so I can’t upload the file. How can I upload the file??

[KathrynG3]

Another option is to convert the data into a .CSV file and upload it. If necessary, re-order the columns TurboTax 

There are several compatible aggregators that can be used to help with the import:

• BitCoin.Tax
• Cointracker
• CryptoTrader.Tax
• TokenTax
• ZenLedger

Only one .csv file can be uploaded at a time. 

In general, the .csv file should be provided via download from your cryptocurrency platform.

It is best to upload the .csv file to your desktop first. Then, save a new copy to change the columns if necessary to match TurboTax before importing.

The columns should be: 

• Service name (examples: Coinbase)
• Asset name (examples: Bitcoin, Ethereum)
• Date of purchase
• Cost basis
• Date of sale
• Sale proceeds

Once you have edited the .CSV file to match this format, return to TurboTax.

Inside TurboTax Online from the search box, enter cryptocurrency. Select the Jump to link in the search results and follow the prompts.

• At Let's get your cryptocurrency info, select any of the tiles and Continue.
  • You must select one of the tiles in order to get to the upload screen. Otherwise, enter each transaction individually.
• At Let's add your cryptocurrency transactions, drag and drop your CSV file.

For more information, see: How do I report Bitcoin or other cryptocurrency as a capital gain?

However, if you are mining cryptocurrency, then report this as self-employed income. 

@Mmc