Ok, gotcha! In that case, your stock platform should provide you with a Form 1099-B. This information also may be reported on a Consolidated 1099.
The 1099-B will show the stocks that you sold during the year, the cost of those stocks, and the gain or loss on the sale. This information will all need to be reported on your tax return for this year, even if the gain or loss is only a few dollars.
To enter your information in TurboTax you may be able to import it directly from your stockbroker once the form is available:
- Open or continue your return (if it's not already open) and search for stock sales
- Select the Jump to link in the search results
- Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2021?
- If you land on Your investment sales summary, select Add more sales
- On the OK, what type of investments did you sell? screen, select Stocks, Bonds, Mutual Funds, then Continue
- If you do not want to import, you can also select I'll type it myself
- Step through the interview and select Sales section totals when prompted to choose how to enter your sales
- You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your 1099-B for the amounts and category. When finished, select Continue
- You can add additional sales totals by selecting the Add another sales total on the Review your sales section totals screen
This TurboTax article gives more information about stock sales. For the most part, the same is true of crypto, although the platform you use for crypto may not provide you with a 1099-B. One general rule is that if you hold stocks or crypto for longer than a year and recognize a gain, they are treated as long-term capital assets which are taxed more favorably for you.
Lastly, if your stockbroker does provide a Consolidated 1099, be sure to report any dividends, interest, or other miscellaneous income that may be reported on that form.
