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.
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.
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.
Watch our video to see how to file crypto taxes with TurboTax, or follow the instructions for reporting crypto taxes on TurboTax below.
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.
There are two different sections you may need to head in your TurboTax account to do your crypto taxes:
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.
You're done reporting your crypto capital gains and losses, so let's move on to income!
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.
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.
Got more burning questions about TurboTax & crypto? Here are some of the questions we get asked most frequently:
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.
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.
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.
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.
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.
There's four different bands of TurboTax, Free, Deluxe, Premier and Self-Employed.
TurboTax Deluxe includes everything in the free TurboTax edition, plus:
While TurboTax Premier includes everything in the TurboTax Deluxe edition, plus:
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.