How to enter cryptocurrency on the downloaded version???

[Basement_Buzzard]

After filing my taxes & reporting crypto ordinary income from mining & rewards, I went back into TT. When it updated the income reported as Misc. Income from mining was deleted. In other words, it appears Turbo Tax has now revised its program in accordance with the court rulings. When you harvest corn you do not pay taxes on the market price at the time of harvest. You pay taxes when you sell it. According to the court crypto, as property, is to be treated the same way. It was ruled that the IRS cannot tax it both ways.

[JoeFM]

@Basement_Buzzard 

I understand what you are saying, but there is a lot of conflicting information out there.  

Here is an article from a few days ago...

https://www.forbes.com/advisor/taxes/cryptocurrency-taxes/

Crypto Taxes When You Mine Crypto

If you earn cryptocurrency by mining it, or receive it as a promotion or as payment for goods or services, it counts as part of your regular taxable income. You owe tax on the entire fair market value of the crypto on the day you received it, at your regular income tax rate.

And if you hold the same cryptocurrency you mined or earned from these activities, its value increases, and you either spend it or sell later at a profit, you would also owe capital gains taxes on the profits, based on how long you’ve held it

[MMDM1983]

Thank you for helping, I have the downloadable version and when I Click Open Forms and enter Cryptocurrency nothing pops up. When I called TT to ask why I do not have a Crypto option I was told it’s “because I purchased it at Costco and probably have a bogus copy “. I see here that’s not the real reason. Is there ant way to get the crypto form to come up in this version?

[liliasergey]

@Basement_Buzzard 

If you are right, then we do not need to report interest earned on crypto at all.

(if interest was paid in crypto and I do not sell it, of course). Correct?

[Basement_Buzzard]

This information is incorrect according to the US Federal Tax Court. The IRS lost its case to double tax crypto.

[Basement_Buzzard]

If you were paid in crypto and not cash, as I understand it the IRS cannot tax property as though it were currency (i.e. cash income). TurboTax has updated its tax form to remove the "ordinary income" tax. Capital gains taxes, however, are to be reported on any crypto sales. The IRS has declared crypto Property not currency. 

[Basement_Buzzard]

Capital gains taxes are to be reported on the sale of crypto. The download version does not have any direct way of reporting crypto. I reported mine in the same manner as gains on stocks. I may have done it the hard way. I downloaded my transaction report from the exchanges as CSV files. I then loaded them into Excel & parsed out which transactions were sales and entered them in the Investments section of TT to compute the required capital gains taxes.

[liliasergey]

@Basement_Buzzard

"The IRS lost its case to double tax crypto." It's good news. However, in my BlockFi account I found a 1099-MISC form. I did not sell anything. Just keep my altcoins on BlockFi. 

So, I earned interest paid in crypto. But BlockFi generated the 1099-MISC with a total amount in USD. Obviously, they converted the crypto amount into USD amount and now I have 1099-MISC and should report it. 

This 1099-MISC has just one number (in USD), but I have 30+ transactions with different coins which gave me that number. Should I report those transactions somehow or just report one number from 1099-MISC? 

If they would not generate the 1099-MISC, I would not report anything according to your information about the US Federal Tax Court.

Totally confused.

[JohnB5677]

So I understand that you got interest paid in crypto.  You then got a 1099-MISC for the USD value of the interest. 

• This is exactly correct.
• The dollar value represents the basis for the crypto that you received.
• The interest (even in crypto) is taxable to you in the year you receive it, just like bank interest.
• When you sell, exchange or dispose of those units of crypto, you will deduct the basis from the selling price.

[rongbingham]

It looks like I wasted $30 for an upgrade from Delux to Premier in order to import my crypto trades.

It looks like it's impossible to import CSV files for my transactions but to ONLY import (in Premier) CPA generated -- paid for to a handful of CPAs -- forms. What's up with this? 

I cannot find any instructions to import CSV files in Premier.

Is this possible? Are you going to add it like it appears the free online version allows?

Tell me, please.

[rongbingham]

It looks like the vast majority of exchanges ARE NOT PROVIDING 1099-Bs for Crypto this year making TurboTax deficient in helping us crypto users enter our tax info on this.

I encourage you to provide CSV importing.

Here's a link that explains what's needed for header information you can use to get this out there -- this year.

https://help.taxbit.com/hc/en-us/articles/[phone number removed]-Importing-Transactions-Manually-wit...

[rongbingham]

Give us a CSV Import in TurboTax Deluxe that follows the TAXbit.com CSV Headers as provided at 

https://help.taxbit.com/hc/en-us/articles/[phone number removed]-Importing-Transactions-Manually-wit...

Deluxe provides imports for a handful of CPA imports only! 

The vast majority of exchanges ARE NOT providing 1099-Bs for Crypto Trades. I know this is not a TurboTax problem but TurboTax can at least help remedy this by proving CSV Imports by providing header info to import 1099-B info as I provided above. HELP US.

[GeorgeM777]

Here are the steps to follow to upload your CSV files.  If you have tried the following steps and still remain unable to upload your cryptocurrency transactions, provide additional information explaining what is happening in a follow-up post.

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 Upload on the Select your crypto experience screen 
6. On the What’s the name of the crypto service you used screen, select your crypto service from the dropdown menu 
7. After downloading your CSV file from your crypto service, upload it on the Go ahead and upload your crypto CSV file screen 
   1. Note: Make sure your file extension is .csv
8. Review your uploaded crypto information

TurboTax supports CSV files uploaded from these cryptocurrency services.

• Bitcoin.Tax
• BitTaxer
• Coinbase
• CoinTracker
• CoinLedger
• Robinhood
• TokenTax
• ZenLedger

@rongbingham

[liliasergey]

@JohnB5677
you said "The interest (even in crypto) is taxable to you in the year you receive it, just like bank interest."
It is opposite what Basement_Buzzard said above about the IRS losing its case to double tax crypto. The IRS has declared crypto Property not currency. 

Who is right?

If Basement_Buzzard is right, we do not need to report interest earned in crypto at all.

If you are right, then the question remains. What  is the best way to report my 120 transactions (10 coins got interest each month) using the TT desktop version? 

[DianeW777]

There is some detail that may make this more clearly understood about the 'crypto interest incentive', language. 

When the Crypto is paid out to you and you have control (when it it transferred to your wallet) you should report it as income.

The amount of income you report will be that value of that Crypto when you get possession/control. This becomes your cost basis when, in the future, you trade or sell it. The difference will be a taxable event resulting in gain or loss for tax purposes. Our awesome Tax Expert @KrisD15 provides useful details to be able to grasp the concept.

Example:

If the value is 5, you report 5 other income

Now your "basis" is $5, if it is traded at $7, you have a $2 gain, if you sell at $3, you have a $2 loss. 

If you buy a $2.50 coffee with it and it's still worth $5, (so you only use half) nothing to report.

If you buy a $2.50 coffee with it and it's worth $10, you have a 2.50 gain (because it doubled in value) 

If you buy a $2.50 coffee with it and it's only worth $2,50, you have nothing to report. You can't claim a loss when using it for a purchase.

• Note: You COULD have sold it for $2.50, claimed a @2.50 loss, THEN bought your coffee

Enter the income as an "Crypto Interest Incentive". It will be listed on line 8 of your 1040, as other income entry (as opposed to interest income entry). 

If you use it to make a personal purchase, that transaction won't be reported UNLESS the value of this virtual currency is up when you use it, then you are taxed on the gain. When you USE IT (for a personal purchase), you may need to report a gain, but can't claim a loss. The IRS does not allow a personal loss to offset other income.

Step 1: Please follow the instructions below to report Other Income:

1. Click Federal Taxes -> Wages & Income and scroll down to Less Common Income
2. Go to the last selection, Miscellaneous Income and click Start
3. Go to the last option, Other reportable income and click Start
4. When it asks, "Any other reportable income?" > yes and then type in a description and the amount to report it on your tax return.
   • Type "Crypto Interest Incentive" as the description (or whatever you think will make sense to the IRS and always use this same description going forward) and the amount (the dollar value of the crypto) 
5. TurboTax Online and TurboTax CD/Download will use the same procedure

You will need to keep track of this basis for each unit of crypto you hold. The IRS says First In First Out, so when you use it, you use the oldest basis for that unit of crypto unless you specifically designate the crypto you sold.  Again, this all needs to be tracked for each action until you no longer have specific lots of crypto. 

@liliasergey​​​​​​​