How To Do Your TurboTax Canada Crypto Taxes in 2023

Using TurboTax Canada for your crypto taxes and completely lost on how to file? We got you. Here's how to file TurboTax cryptocurrency taxes in 2023 with Koinly, ahead of the April 30 deadline.

Watch how to do your Canada TurboTax crypto taxes

Watch our video tutorial on how to do your TurboTax cryptocurrency taxes in Canada, or follow our step by step instructions below.

How to do your Canada TurboTax crypto taxes

You'll need to start by setting up your Koinly account and getting the files you need. Here's how:

On Koinly

1. Sign up and set up your Koinly account by connecting all your wallets, exchanges, and blockchains. Make sure your settings are correct for Canada, i.e. CAD, Adjusted Cost Basis method, and the correct financial year.
2. Download the Complete Tax Report from the tax report page in Koinly. You'll use this information to copy and paste into TurboTax.

Now you need to set up your TurboTax account. Please note, for these instructions - we're using the online version of TurboTax Canada, the desktop instructions may differ slightly. Here's how:

On TurboTax Canada

1. Sign up or log in to your TurboTax Canada account.
2. Select “start a new 2023 return”.
3. Please note you'll need the Premier Plan or higher on both the online and desktop versions of TurboTax Canada to do your crypto taxes. Select the Premier "Start for free" option. You can pay at the end.
4. Fill out your personal information for your TurboTax account, and any other information as it applies to your circumstances. We'll only be covering how to file your crypto taxes in this guide. If you need help learning how to file using TurboTax generally, you can find more information on the TurboTax site.

You need to report your crypto capital income and your crypto capital gains separately in TurboTax Canada. We’ll walk you through how to do both. Please note, your province may have additional reporting requirements we do not cover in this guide.

How to report crypto capital gains in TurboTax Canada

1. In the menu on the left, select investments.
2. Select investments profile.
3. Check capital gains or losses (and interest and other investments if you have crypto income)
4. Select continue, then continue again after reviewing the page.
5. You'll be taken to the capital gains page in TurboTax now. Many of the boxes you'll see on this page don't need to be filled out for cryptocurrency capital gains, they apply to other kinds of capital assets instead. As well as this, there are some sections that may apply to your unique circumstances that you may need to complete - for example, the 'percentage claimed on a spouse's return if applicable', may apply to you. You can learn more in our guide.
6. From the drop-down next to 'type of capital property disposed of', select 'virtual currency transactions (cryptocurrency, tokens, etc.)'.
7. Copy the figure next to 'proceeds from sales' from the capital gains summary section of your Koinly Complete Tax Report and paste it into the 'proceeds of disposition' box in TurboTax.
8. Copy the figure next to 'acquisitions costs' from the capital gains summary section of your Koinly Complete Tax Report and paste it into the 'adjusted cost base' box in TurboTax.
9. If you have allowable expenses, copy the figure next to 'total' from the expenses section of your Koinly Complete Tax Report and paste it into the 'outlays and expenses' box in TurboTax. However, it's important to note here that you should check that your expenses are allowable expenses according to the CRA's guidance as not all expenses are deductible.
10. Select done.
11. TurboTax will now calculate your capital gains based on the figures you've entered. Double check this against the figures in your Complete Tax Report. You should also check and correct the other information on the page as it applies to your circumstances.
12. Select done.

Please note if you have capital gains or losses from other sources, you should report them in this section as well.

How to report crypto income in TurboTax Canada

1. In the menu on the left, select investments.
2. Select investments profile.
3. Check interest and other investments (and capital gains or losses if you have capital gains and losses)
4. Select continue, then continue again after reviewing the page.
5. If you have capital gains to report, you'll complete this section first. You can find step-by-step instructions above. Once you're on the interest and other investment income summary page in TurboTax, you'll need to get the relevant figures from your Koinly Complete Tax Report.
6. Copy the figure next to total in the income summary section of your Koinly Complete Tax Report.
7. Paste this figure into the amount box next to interest and other investment income.
8. In the box titled specify, describe your income, for example, staking rewards or crypto other income.
9. Select done with interest and other investments income.
10. Review and select continue
11. Check your summary and select continue.
12. You're done!

Please note if you have additional income from other sources, you may need to report them in this section as well.