Virtual Currency Yes No Chbx

[OldNavySubSailor]

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1040 / 1040SR Wks: Virtual Currency check Boxes must be entered.

This shows up during the smart check. I found out what it means after searching the forums, which confirmed my what it thought it means. Why the gov. needs to know is another intrusion as far as I am concerned. 

However, my concern is that I never saw these "questions" in the first place. Why did they not show up until the smart check?

[JamesG1]

To view the virtual currency question in TurboTax online:

• Click on Federal.
• Click on Wages & Income.
• Scroll down to the bottom of the page and click on Wrap up income.
• Click through several screens to arrive at Did you acquire, sell or exchange any virtual currency in 2021?

If the question is not answered during the tax interview, the question is asked during Review or Smartcheck.

IRS Publication 17 page 1 states:

Virtual currency.

If, in 2021, you engaged in a transaction involving virtual currency, you will need to answer “Yes” to the question on page 1 of Form 1040 or 1040-SR. See Virtual Currency in the Instructions for Form 1040 for information on transactions involving virtual currency. Do not leave this field blank. The question must be answered by all taxpayers, not just taxpayers who engaged in a transaction involving virtual currency.

[OldNavySubSailor]

Thank you for your reply,

However, look at that progression!

All those steps for a mandatory, rather cryptic (given the number of questions that I have seen asked about it).  Now, I know that it is no way your fault JamesG1, but really, that thing should have been way up front in all our faces waving a red flag (seeing as how this is the very first time that is is required if I understand things correctly). 

I was doing my son's (a sailor) taxes first before I did our taxes, all he has is a W2, why in the world would one go through all those steps? Someone in Turbotax land, needs to put on a commonsense think like a real, actual, normal person trying to get their taxes done and get on with their life designer there. 

[JamesG1]

The 2020 Federal 1040 contained a virtual currency question.

[OldNavySubSailor]

And if I wanted to use paper, I would not have spent a lot of money on TurboTax, would I? The paper forms mean nothing to me. We fill out what TurboTax indicates and skip what it indicates or implies that we should. 

Regardless, this remains a new area or topic and TurboTax should have flagged it better.  If nothing else, the Smart Check could have been more helpful by putting up one of the little ? Icons that would have opened an explanation / definition box. How hard would that have been? Not at all for a good programmer. 

[Anonymous]

2023 Mac version of TurboTax - I receive this exact error message when running SmartCheck. Nowhere in this version of TurboTax is a question about "cryptocurrency". Following the instructions, which direct me to "Investment Income," and then to complete the section, does not take me to any questions involving cryptocurrency. Here are the instructions from the help section of TurboTax:

1. Open TurboTax and open your return
2. Go to Federal Taxes, then Wages & Income
3. On the Your 2022 Income Summary screen, under Investment Income, select Start or Update next to Stocks, Mutual Funds, Bonds, Other
4. On the Did you sell any investments in 2022? screen, select Yes
   • You need to use TurboTax Premier or Home & Business to do this. If you're using a different product, you'll be able to change products.
5. Answer the questions and continue through the screens