I didn’t make any money with crypto in the year, do I have to report it?

[Star168]

I didn’t make any money with crypto in the year. In fact I lost some money. Do I have to report it?

[TeriH]

Great question!

If you sold any crypto or earned any income, it is reportable.  That being said, if your losses exceed your gains, you can write off up to $3000 per year.  Any excess is carried-forward.

Here's a great article on how cryptocurrency is taxed.

[Star168]

If I didn't report my crypto trade loss in 2022, can I still report it for my filing for 2023?

[TeriH]

You would need to go back and amend 2022.

[mdyune]

I did not know about 3k limit. If I lost 10k from crypto and made 10k from stock trade, I can only use 3k for the loss to reduce the gain from stock trade?

[TeriH]

not quite.

if you lost $10k on crypto and made $10k in stocks, they offset fully , so zero taxable income.  However if you lost $20k on crypto and made $10k in stocks, you could only report a loss of $3k.  And the extra $7k in loss would carryforward for use.

[mdyune]

I misunderstood. Now I got it. Thanks

[Ruth C-L]

Great answers from the previous expert.

I would add that it is always wise to report capital gains or losses to avoid IRS notices in the future for unreported investment income. When it comes to crypto and other investments that do not have a cost basis reported to the IRS via a 1099-B, the IRS will issue notices to the taxpayer stating they have unreported income and the IRS will assert that the taxable income is the gross sales proceeds since they don't have any information on the cost basis. To avoid getting IRS notices that may provide the wrong taxable income and assess taxes and penalties, you should report the investment transaction and include both the sales proceeds and the cost basis.

[Star168]

"You would need to go back and amend 2022."  
---How do I go back to amend 2022 on Tubotax? Is there a step by step guide showing me how to go back?

[DoninGA]

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@Star168 wrote:

"You would need to go back and amend 2022."  
---How do I go back to amend 2022 on Tubotax? Is there a step by step guide showing me how to go back?

---

See this TurboTax support FAQ for amending a tax return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-a...