How To Do Your TurboTax Crypto Taxes in 2023

Using TurboTax for crypto taxes, but no clue how to file them? Use our step by step guide for US investors on how to file your crypto tax with TurboTax and Koinly in 2023.

Does TurboTax handle cryptocurrency?

In short, yes, but TurboTax isn't designed specifically to file crypto taxes and the integrations it offers are far too limited for most crypto investors. This is why most investors opt to use TurboTax with a crypto tax calculator like Koinly.

How to report crypto taxes on TurboTax with Koinly

Koinly calculates your crypto gains and losses for tax reporting purposes and lists everything you need in a dedicated TurboTax report. Once you've downloaded your report, you'll need to upload it to TurboTax Online or TurboTax Desktop.

TurboTax & Koinly video tutorial

Watch our video to see how to file crypto taxes with TurboTax, or follow the instructions for reporting crypto taxes on TurboTax below.

Get set up on TurboTax & Koinly

To get started, you'll need to get set up and get the reports you need from Koinly, as well as get your account set up on TurboTax.

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 the USA and select an allowable cost basis method.
2. Download the TurboTax Online tax report from the tax report page in Koinly. If you're using the desktop version of TurboTax - download the TurboTax CD/DVD report instead. If you have income or other allowable expenses, or if you'd like to compare your totals in TurboTax to ensure accuracy (we recommend doing this), you may also want to download the Complete Tax Report from Koinly.

On TurboTax

1. Sign up or log in to your TurboTax account. Please note you'll need the Premier Plan or higher on both the online and desktop versions to do your crypto taxes.
2. Fill out your personal information for your TurboTax account as it relates 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.

Where to enter crypto in TurboTax

There are two different sections you may need to head in your TurboTax account to do your crypto taxes:

• Capital gains and losses
• Crypto income

Let's look at each. If you need a quick refresher on how crypto is taxed in the US - check out our US crypto tax guide.

How to report crypto capital gains in TurboTax

1. Under wages & income, select pick up where you left off.
2. Select add next to investments and savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto).
3. On the page with the question "did you have investment income in 2022?", select yes.
4. Select continue on the following page.
5. Select enter a different way on the following page.
6. Select cryptocurrency on the following page, then continue.
7. Under select your crypto experience, select upload it from my computer, then continue.
8. From the drop-down menu under "what's the name of the crypto service you used?" select other.
9. Under name, enter a relevant description for your crypto, for example, "crypto investments."
10. For CSV type, select gain/loss or 1099-B.
11. Select continue.
12. Upload the Koinly TurboTax Report you downloaded earlier.
13. Select review, then continue.
14. Compare the totals of your Koinly Complete Tax Report against the totals recorded in TurboTax. If there is a small difference, this is normal, it's because TurboTax rounds your figures.
15. Once you're happy with everything, select confirm and then next.

You're done reporting your crypto capital gains and losses, so let's move on to income!

How to report crypto income in TurboTax

Your TurboTax Online report only covers assets (so capital gains) - so to report your crypto income you'll need to use the figure in your Koinly Tax Summary. If you want to split your crypto income into the different types of income you've had - for example, mining, staking, airdrops, etc. - then you'll need to download the Koinly Complete Tax Report to get this information.

1. Under wages & income, select less common investments.
2. Select start (or revisit) next to miscellaneous income, 1099-A, 1099-C.
3. Select start (or revisit) next to other reportable income.
4. On the page titled "any other taxable income?" select yes.
5. Enter a description of your income as it's relevant to your investments, for example, crypto mining or crypto airdrop. You don't need to break your crypto income down into different sources, you can just report the total figure.
6. Under amount, enter the total amount from the income summary section of your Koinly Complete Tax Report.
7. Select continue.
8. Review your miscellaneous income summary section and select done once you're happy with it.
9. You can now finalize and submit your return!

Please note there are other deductions that may be possible like charitable donations, allowable expenses, and tax planning deductions for self-employed workers. You should include these as relevant to your circumstances.

How to report crypto with TurboTax desktop

As we said before, the instructions above are for TurboTax online. If you're using TurboTax Desktop the steps are slightly different.

Start by signing up and setting up your Koinly account by connecting all your wallets, exchanges, and blockchains. Check you're happy with the calculations and then download the Koinly TurboTax CD/DVD file. Once you've got it, head over to TurboTax and follow these steps:

1. Navigate to File > Import > From Accounting Software

2. Select Other Financial Software (TXF file) then click Continue

3. Select Browse File and select the TXF file you downloaded from Koinly. Once the file has been selected, click Import Now.

4. Confirm that the file appears as a 1099-B and click the Import Now button once again. Important note: The report generated by Koinly is aggregated across multiple cryptocurrency exchanges so the Financial Institution name isn't set. This is to be expected, so you can disregard the Needs Info column and continue forward by clicking Done.

5. The import of the crypto transaction data is now complete once you get to this screen. You may now click Done and continue entering information for the rest of your return as relevant to your financial circumstances.

FAQs

Got more burning questions about TurboTax & crypto? Here are some of the questions we get asked most frequently:

Where do I enter crypto in TurboTax?

Wondering where to enter crypto in TurboTax? You report crypto gains and losses under investments and savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) and crypto income under less common investments as miscellaneous income. You can find more detailed steps above.

How long does TurboTax take?

This very much depends on your personal circumstances and how complex your financial situation is. For most taxpayers with a simple enough financial situation, using the right tools for the job, your TurboTax return should take no longer than an hour.

What's the best crypto tax TurboTax integration?

So we might be biased here - but Koinly is purpose-built to help you file your TurboTax tax return easily. You can download an online or desktop TurboTax Tax report from Koinly and upload it to TurboTax to report in minutes. Not convinced? See our 1000+ glowing Trustpilot reviews.

How much does TurboTax online cost?

TurboTax has many pricing options - from free to $89 for the premier plan or $119 for self-employed taxpayers (plus state filing costs). The plan you'll need depends on how complicated your tax return is. For crypto investors, you'll need TurboTax Premier.

Why does TurboTax say needs review?

Once you've reported your crypto taxes on TurboTax, you'll be given the option to review every transaction. You do not need to do this - especially if you're pushed for time.

Which is better TurboTax Deluxe vs Premier?

There's four different bands of TurboTax, Free, Deluxe, Premier and Self-Employed.

TurboTax Deluxe includes everything in the free TurboTax edition, plus:

• Searches 350+ tax deductions and credits
• Maximizes mortgage and property tax deductions
• Turn donations into big deductions

While TurboTax Premier includes everything in the TurboTax Deluxe edition, plus:

• Covers stocks, bonds, ESPPs, crypto, and other investments
• Auto-import your crypto and stock activity to make sure there’s no missing info
• Covers rental property income and tax deductions
• Accurately account for gains and losses from crypto transactions

As you can see, you'll need the TurboTax Premier edition to file your crypto taxes. Prices start from $89 with additional fees for state taxes.