Content
You just need to import your transaction history and we will help you categorize your transactions and calculate realized profit and income. You can then generate the appropriate reports to send to your accountant and keep detailed records handy for audit purposes. TurboTax makes turbotax desktop crypto it easier than ever to file for taxes — including many cryptocurrency transactions. Even if you’re an active trader with complex transactions across exchanges and wallets, ZenLedger’s integrations can help you ensure that you’re properly reporting everything to the IRS.
Like crypto traders, miners must pay a separate capital gains tax when exchanging the coins for fiat or another crypto currency that’s reported on Form 8949 and Schedule D. The manner in which you choose to enter any other income, such as staking, airdrops, rewards, hard-forks, liquidity pool income or other types of income, will depend on whether you received a Form 1099-MISC or not. If you received a Form 1099-MISC, you want to report this in the 1099-MISC separately and exactly as Box 3 shows.
Demystify Crypto Taxes
Oftentimes discussing your tax situation and planning ahead can help you save significant amounts. In the next screen, select “Sales section totals”and click continue through this and the next screen as well. Glossary Broaden your knowledge of crypto terminology.FAQ Answers to your commonly asked questions.
- This crypto tax guide aims not only to help you understand the different sections of…
- TokenTax was founded in 2017 and is a tax filing company offering services across 18 countries.
- Accointing is an excellent one-stop solution for all your crypto tax problems.
- Yes, TaxBit is absolutely a secure crypto tax software.
- Some of the best tax software for beginners are Koinly, CoinTracking, and Accointing.
- Before uploading your file, confirm that the end of your file name says .csv, not .xls or .xlsx.
- Cryptocurrency mining is considered either hobby or self-employment income.
You can use 25 customizable crypto reports and interactive charts for all your trades https://turbo-tax.org/ and coins. Try looking for tax software that ensures the safety of your actual data.
Select “Enter a different way” on tax import screen
This means that technically, you have to separately report each sale or exchange that has a different acquisition date. This can be very time consuming due to the volume of transactions most crypto investors have, and even with software, there can be limitations on how many trades can be reported. The next screen will ask for the category that this sale is related to. You should select either C or F depending on whether you are reporting short-term or long-term trades and click “Continue”.
- I will say though that they do not work on weekends so get your work done during the week.
- The above steps outlined the process for reporting your cryptocurrency taxes within the online version of TurboTax.
- We generate documents for you with every field already populated.
- For now, the feature is only available to Coinbase users who file their tax return with TurboTax.
