How to enter cryptocurrency on the downloaded version???

[DawnC]

That is true @Basement_Buzzard.   The desktop version does not have the feature to upload images or CSV files to autofill your crypto transactions.    The only way to import your crypto transactions in the desktop program is if your crypto financial institution is on the TurboTax Import Partner List.   If not, your crypto transactions can be summarized or entered individually in the Investment Income section of TurboTax Desktop - using the first subsection, Stocks, Mutual Funds, Bonds, and OTHER (crypto).

If you have a large number of crypto transactions and are using the desktop software, there is another option you can try out.    This will allow you to start your 2021 return in Online using your 2020 desktop tax file (*.tax2020), upload your crypto and finish the return using the desktop software without having to retype or re-enter any information.  

1. Start a return in the Online software in the Self-Employed (any individual tax return will work with SE) product.  Use the ''Start for Free'' option as you will not be paying for or filing the return using TurboTax Online.  
2. If you have a saved copy of your 2020 return as a tax file (*.tax2020), import that previous year tax file using the linked instructions (choose 'I used the CD/Download version last year') .   This will populate your personal information, previously used Schedules, AGI, carryover amounts, and other important details  from your previous years return.   A PDF file won't work; you need the 2020 tax file.    If you do not have a 2020 tax return to transfer in, you can skip this step, but your 2021 return won't have your 2020 data if you do skip this step.   
3. Import or upload your crypto data.   You can connect directly to your exchange or upload your own CSV file.    Use one header row with only the 5 key column labels (description, purchase date, sold date, proceeds, and cost basis) at the top.   If you are using the file from the crypto exchange or aggregator, it may have something hidden or embedded in the header row that prevents it from importing correctly.
4. Once you have all your crypto in TurboTax Online, you can use the Tax Tools >> Tools menu on the left side panel and click on Save your 2021 return to your computer link.   The 2021 tax file will download to your computer.
5. Open that tax file using your desktop software and finish your return.   All of your previous year's information as well as your crypto transactions will included in the tax file (*.tax2021).

Keep in mind, a .tax file from a previous year won't transfer if the file is password protected.

[liliasergey]

Is there a plan to fix the Desktop version before April? Just add "upload crypto transactions"! And... How to reach TurboTax Import Partner List  in Desktop version if there is no question about Crypto at all? There is nothing regarding imputing cryptocurrencies!

 Even the on-line version looks differently. Last year we could upload CVS files from companies  who prepare crypto-tax (i.e. CryptoTrader), but this year you are using only your 15 partners,   mostly Crypto Exchanges. But the list of Exchanges in the world is far more than your 15. 
Looks like TurboTax going to be less and less useful. 

[Basement_Buzzard]

You refer to using "self-employed income & expenses" if you are crypto mining.

This is NOT correct unless you are mining as a business and not a hobby.

As a hobby it is reported as ordinary income.

The IRS has a set of specifics on what is & is not hobby mining.

The question is where in TurboTax is this entered?

[DawnC]

I was referring to the sale of cryptocurrency (capital gain transactions) in my previous post.   For mining transactions (income transactions), both the online version and desktop version work the same.   @Basement_Buzzard

For tax purposes, it’s either considered earned income or treated as property sales.  The differences are below.

It’s considered earned or ordinary income when you:

• Receive it as payment for goods or services (like if you were paid in cash)
• Mine it and make a profit
• Receive new cryptocurrency from a hard fork followed by an airdrop or other transfer

It’s treated as a property sale, and the earnings are capital gains, when you:

• Sell it (like you would stock)
• Exchange it (swap one type of cryptocurrency for another)
• Spend it (use it as payment for goods and services)
• Convert it to US dollars (sell cryptocurrency to buy regular currency)

Instructions for each are below.   The differences between online and desktop are with the capital gains transactions, not the earned income transactions.

• How do I report earnings or losses from Bitcoin and other cryptocurrency?
• How do I report Bitcoin or other cryptocurrency as a capital gain?

[liliasergey]

OK, if I have interest earned on crypto, then I have to enter every transaction as ordinary income . How exactly can I enter it? In "Less Common income" section? 

Also, how can I enter all crypto transactions with interest earned, not just a total interest? (Desktop version, please)

[Basement_Buzzard]

In the DOWNLOADED version of TT where in the STEP-BY-STEP do we enter this "ordinary income" from mining crypto?

[Cynthiad66]

Follow these steps if the import option didn’t work for you or you’d prefer to manually enter your crypto transactions.

1. Sign in to TurboTax, and open or continue your return
2. In the Wages and Income section under Investments and Savings (or Investment Income), select Start or Revisit next to Crypto (1099-B)
3. On the next screen, you may see Did you sell any of these investments in 2021? or Time to kick off your investments!, select either Yes or Okay!
4. On the We can make this faster screen, select Enter a different way, and then select Cryptocurrency on the following screen
   1. If, instead, you’re asked to select an investment type, select Cryptocurrency
   2. You’ll then see the Get ready to be impressed screen. Select Continue, then select Try another way
5. Select Type it in myself on the Select your crypto experience screen 
6. On the Let’s enter your crypto tax info screen, search for your cryptocurrency exchange 
7. On the Did you get a 1099-B screen, answer accordingly
   1. If you didn’t get a 1099-B, skip to step 11
8. Continue answering the interview questions to help us determine the best way to enter your transactions, then select Continue 
9. Depending on your answers, we’ll recommend either entering your sales One by one or as Sales section totals 
10. If you answered yes to getting a 1099-B in step 7, we’ll help you find your sales on your form. Then select Continue
11. Enter your sale information on the next screen, then select Continue
12. Review your sales information. Repeat these steps for any additional transactions

For additional information please use the link below.

How To Import Cryptocurrency Transactions into TurboTax

[Basement_Buzzard]

I seem to be repeating myself here. YOU ARE RESPONDING FOR THE ONLINE VERSION OF TT. NOTHING YOU POSTED APPLIES TO THE DOWNLOAD VERSION. Your suggested entries DO NOT EXIST!!!!!!!!!!! Again from what "help" responses I am seeing throughout Support I am assuming Intuit is intending on eliminating the download / cd versions next year. Also you assumed I was referring to the sale of crypto. However, if crypto is received as a reward and not sold your outline would be incorrect even in the online version. 

[Cynthiad66]

This income is reported as ordinary income using a Schedule C.  If you earn cryptocurrency by mining it, it's considered taxable income and reported on Form 1099-NEC at the fair market value of the cryptocurrency on the day you received it just as if it were self-employment income.  You need to report this taxable income even if you do not receive a 1099 form.

Use this link for additional information about reporting income from mining crypto currency

.How to Report Income From CryptoCurrency

Self-employed persons, including direct sellers, report their income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Use Schedule SE (Form 1040), Self-Employment Tax if the net earnings from self-employment are $400 or more.

In the Desktop Version you can go to Forms View and Click on the Schedule C to report the income.

1. Open or continue with your return.
2. In the Search box type schedule c.
3. Click the “Jump to schedule c” link in.
4. Answer Yes to Did you have any self-employment income or expenses

[Basement_Buzzard]

Form 1099-NEC does not appear to apply. No crypto questions pop up when filling this out. On the other hand using Form 1099-MISC filling only the boxes I have data for results in some 8 or 9 further inquires into the crypto mining income. Furthermore IRS publications & FAQs refer to reporting crypto mining as "miscellaneous" income. Our operation is the intermittent use of a personal computer to do some mining. It is not a full time or dedicated operation. The "intent for profit" is only one of a whole list of criteria the IRS uses to determine hobby vs business.

[JohnB5677]

If you earn cryptocurrency by mining it counts as part of your regular taxable income. You owe tax on the entire fair market value (converted to USD) on the day you received it.

If you did not have any expenses associated with the payment, you can post it to Miscellaneous Income.

In Desktop go to 

1. Wages and Income
2. I'll choose what I work on
3. Scroll to the bottom Less Common Income
4. Select Miscellaneous income
5. Select Other income not reported on a Form W-2
6. Under Other Wages Received select Yes
7. Continue to Any other earned income  Yes
8. Select Other
9. Post the Description and Amount

@Bassement_Buzzardk on

[liliasergey]

Would you please advise how to report interest earned on stacking crypto?

I spent a week trying to find the answer. You say: Enter as regular income. Where? There is no "regular income" section. Where to enter all transactions?

Step-By-Step, If crypto is received as a reward. No 1099 form received. DESKTOP version.

Please.Please.Please.

[PDtaxfilerDIY]

You have got to be kidding - what a ridiculous solution to fix a major flaw in your software!!!

[PDtaxfilerDIY]

My earlier post was regarding a post I read in this tread saying that one should start their tax return in the online ver so they could import their crypto transactions and then convert the online ver to the desktop ver so they could continue - I just can't believe that the 2021 desktop version does not have anything related to crypto!!! What is going on at turbotax???

[DawnC]

To enter hobby income from mining, you can enter it under Hobby Income, which is the same in the desktop versions and the online versions.   This will get reported as ordinary income (Line 8 of Form 1040). 

You can find it under Miscellaneous Income, the last section in the Less Common Income section.   

@Basement_Buzzard

@PDtaxfilerDIY - That suggestion is for those with a large amount of transactions that want or need to enter each transaction separately in detail.   Right now, only the online version allows importing of CSV files and images.    You can also summarize your transactions and enter them the same way you would in the online program when using the desktop software.  

How to enter a summary in lieu of individual transactions - this works for either version when you cannot import from the institution.