How To Report Your Crypto Taxes with TurboTax
TurboTax is one of the most commonly used tax filing programs, and its inclusion of cryptocurrency taxes marks a major milestone for crypto adoption in the mainstream.
The inherent difficulty with crypto tax is that TurboTax cannot aggregate all of your cryptocurrency transactions. With more conventional assets, like stocks, brokers are able to give you a report of all your taxable transactions and cost basis. Crypto, meanwhile, can be freely sent between exchanges and individuals, meaning that exchanges are rarely able to give you accurate tax reports because they don’t have all your data.
People are using crypto tax software to create aggregated reports of their whole crypto history across all exchanges. This makes tax reporting much easier. Your Form 8949, which is used to report your crypto capital gains or losses, is generated automatically accounting for all of your trades during the tax year.
We’re officially partnered with TurboTax for crypto tax
We’re integrated with the TurboTax software, so you can automatically import your crypto tax calculations to file your taxes. This makes filing your cryptocurrency taxes simple because the Form 8949 is automatically included with the rest of your tax return.
How to import crypto into TurboTax Online
Note that TurboTax only allows upload of up to 250 transactions for their web product. If you have more than 250 transactions, use TurboTax desktop instead or skip to the end of this section for further instructions on how to send in your Form 8949 separately.
In your TokenTax Documents screen, create and download a Form 8949 TurboTax CSV.
On TurboTax, progress through the steps until you get to the page titled, “Let’s get an idea of your financial picture.” Click the “I sold or traded Cryptocurrency” tile.
Continue through the TurboTax process. When asked, “Let’s get your cryptocurrency info,” click the TokenTax tile. Then, upload the TurboTax CSV file you downloaded from TokenTax.
Do you have more than 250 transactions and you’re using the TokenTax web version?
If your number of transactions exceeds 250, 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 can also 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.
How to import crypto into TurboTax CD/Download/Desktop
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.
TurboTax allows you to upload your transactions in their Desktop app with a TXF file.
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.
TokenTax does the work so you don’t have to.
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