Do you file your US Taxes with TurboTax? Wondering what to do about your crypto reporting? Let us show you how to file your crypto taxes on TurboTax within minutes, using Koinly's automagic cryptocurrency tax calculator!
First up, let's look at how Koinly generates the tax report TurboTax needs.
How Koinly and TurboTax 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 TurboTax.
Looks easy enough right? Ok, so here's the step by step:
Download tax report from Koinly
Login to your Koinly account. Don't have one yet? Sign up here.
Click on Tax Reports.
Select TurboTax online and download. This report contains all the totals from your synced wallets and ledgers in a format that answers the requirements of the IRS 8949 and Schedule D forms.
Login to your TurboTax account
Login to your TurboTax account.
Find where the Investments section is. (Depending on when you are watching this video and the format of the TurboTax website, it might have changed.)
Scroll down to Investment income and select Cryptocurrency
For question 'Did you sell or trade cryptocurrency in 2020?' Answer Yes.
Next, go to the 'Let's add your cryptocurrency transactions' page.
Click Add More and then select Coinbase (the other options will work too - we just need to get to the next page.)
Import Koinly report into TurboTax
Next you will import the report you downloaded from Koinly into your TurboTax account.
For question 'Now tell us which of these transactions are taxable'. Select All and Continue. Koinly already did the hard part and calculated which of your crypto transactions were taxable.
View your Summaryand Continue and Done.
About TurboTax' Transaction limit
TurboTax has a limit of 2250 transactions so if you have more than this, Koinly will aggregate your transactions, keeping your long-term and short-term gains the same. You might want to attach the Capital Gains Report with your tax-return in such cases.
TurboTax CD / DVD version
If you're using the CD/DVD version of TurboTax then you should download the TurboTax CD/DVD report from Koinly which will give you a .txt file that can be easily imported into the CD and DVD version of the TurboTax software.
And that's it! Crypto taxes done and dusted for another year using Koinly and TurboTax!