Do you E-file your federal and state tax returns with TaxAct? Use Koinly to make the crypto tax section of your TaxAct submission super easy and super accurate! In this video, we explore how to report your crypto activities on TaxAct, with Koinly's IRS-compliant cryptocurrency tax calculations!
First up, let's look at how Koinly generates the tax report that TaxAct needs.
How Koinly and TaxAct work together
Now that you've got the hang of how Koinly calculates your crypto gains and losses for tax reporting purposes, let's check out how Koinly works with TaxAct.
The most important thing to remember about TaxAct and your crypto declaration is that you'll have to work with 2 different forms:
Form 8949: Sales and other dispositions of capital assets
Schedule D: Capital gains and losses
Looks easy enough right? Ok, so here's the step by step:
Download Form 8949 from Koinly
Login to your Koinly account. Don't have one yet? Sign up here.
Click on Tax Reports.
Select IRS Report (Form 8949 & Schedule D) and download.
Import Form 8949 into TaxAct
Login to your TurboTax account.
Find Capital gains and losses and click Review.
On the Form 8949 Summary page, scroll to Add Form 8949 Attachment.
Check the box for 'Attach a statement of transactions instead of entering them individually'.
For Name of Brokerage enter Koinly.
Next, select your 8949 reporting category.
For short term transactions select Category C.
For long term gains select Category F.
For Category C, fill out the Total sales proceeds, Total cost of other basis, and Total adjustment amount fields from the totals found on Part 1 of the 8949 form that you downloaded from Koinly.
Continue to your summary and complete.
Add data from Schedule D into TaxAct
From your TaxAct Income page, scroll down to Other Income-Summary.
Select Add Schedule 1 Form 1040) Other Income.
Work through all related sections until you hit Other Income - miscellaneous. Select Yes.
Next, you'll add totals from your Schedule D of your downloaded Koinly report- IRS Report (Form 8949 & Schedule D).
Continue to complete.
And that's it! Crypto taxes sorted for another year using Koinly and TurboTax!