How To Report Your Crypto Taxes with TurboTax (Updated for 2020)
Filing crypto with TurboTax? Learn how to make a crypto Form 8949 for TurboTax. TokenTax is integrated with TurboTax for easily getting your cryptocurrency in TurboTax
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TokenTax is partnered with TurboTax for crypto tax filing. With TokenTax, you can automatically import all your trading data and then download your Form 8949 tax form for easy import to TurboTax.
Here’s the step by step for importing your cryptocurrency Form 8949 into the web edition of TokenTax. If you’re looking for instructions for the CD / Download / Desktop version of TurboTax, scroll down past the web instructions.
- First, complete calculating your crypto taxes on TokenTax.
- Next, go to your TokenTax Documents page and create a TurboTax CSV.
- Start your tax return in TurboTax. In the TurboTax introduction process, be sure to select “I sold or traded Cryptocurrency” on the page titled “Let’s get an idea of your financial picture.”
- Once you get to your Wages & Income screen, click Start next to Cryptocurrency. If you didn’t previously select that you sold or traded cryptocurrency, you can add it by clicking “Add more income” on this screen and selecting cryptocurrency.
- You’ll be asked if you sold or traded cryptocurrency in 2019. Click Yes.
- Click the TokenTax tile on this next screen.
- You’ll be on a screen where you can upload a file. If your file is rejected because it is beyond TurboTax’s 2251 transaction limit, instead create an aggregated report. You’ll see the option to create an aggregated report when you go to create the form.
If your number of transactions exceeds 2251, consider the desktop instructions below, where up to 3,000 transactions are allowed. Otherwise, the instructions below are for mailing in your full 8949 to the IRS separately.
If you want to submit your full detailed report, you physically mail the Form(s) 8949 (or a CSV/spreadsheet in the same format), along with Form 8453. For your TurboTax tax return, you can upload a summary of your capital gains / losses.
To create a summary capital gains file for TurboTax, select "yes" under the aggregated report option when you make a TurboTax CSV. This will allow you to import just your summarized short and long term gain / loss to TurboTax. Only use this option if you are mailing in the complete 8949 separately with the Form 8453.
You can include your crypto with your tax return via the TurboTax desktop / CD / downloaded edition. Note that the transaction limit in this case is higher than the their web version, at 3,000 transactions. If you are still above 3,000 transactions, refer to the instructions above for sending in your 8949 separately.
How to import your transactions into TurboTax:
- In your TokenTax Documents screen, create and download a Form 8949 TXF.
- On TurboTax, first click Personal Income -> I’ll choose what I work on -> Investment income -> Stocks, mutual funds, bonds and other.
- Click “Yes” when asked if you have you sold any investments in 2018.
- Then click “Yes” when asked if you received a 1099 (even if your exchanges didn’t give you one).
- Scroll down below the "financial partners" window and select “I’ll import a TXF form.”
- Then select the TXF file you saved from TokenTax.