If you use cryptocurrency to buy things like coffee or movie tickets, you might have to pay taxes on it.
The IRS doesn’t consider cryptocurrency as a cash alternative, like a credit or debit card. Instead, the IRS treats cryptocurrency as property, meaning there could be a taxable gain or loss whenever cryptocurrency changes hands.
For example, if you spent $5 on a coffee using a coin you purchased last year for $4 (but now it's worth $5), you have a taxable gain of $1.
Your crypto wallet may send you a Form 1099-K or Form 1099-B, showing the total value of your cryptocurrency activity. Follow these steps to import cryptocurrency transactions into TurboTax.