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H&R Block Crypto Tax Guide

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How To Do Your H&R Block Crypto Taxes

Last updated: Monday, 24 October 2022

Do you use H&R Block to file your tax return with the IRS or the CRA? It's a popular self filing solution, but as crypto moves towards the mainstream - more taxpayers are asking does H&R Block do crypto taxes and if so, how to file crypto taxes on H&R Block? Fortunately, we've got the answers to all your questions in our H&R Block Crypto Tax Guide, including common questions about H&R Block crypto taxes and how to file H&R Block USA crypto taxes and how to file H&R Block Canada crypto taxes.

Does H&R Block do crypto taxes?

In short, yes. With H&R Block Online Premium you can manually enter your crypto disposals, but for most investors this takes hours -which is why most people opt to use a combination of H&R Block and a crypto tax calculator.

How do I report crypto on H&R Block?

You can add all your crypto transactions manually to H&R Block, or you can use a crypto tax calculator to calculate the information you need to report on your tax return including your cost base, proceeds, income, expenses and more. It's really easy to do - in fact, we'll walk you through it.

How to file crypto taxes with H&R Block USA

Watch our video, or follow the step by step instructions below to find out how to file crypto taxes with H&R Block USA.

On Koinly

1. Sign up or log in to Koinly and sync all the wallets, exchanges and blockchains you use via API or by uploading a CSV file.

2. Koinly will then calculate your crypto taxes for you including your capital gains, losses, income, expenses and more. You should check these totals to ensure you believe they are correct. If you think there are errors, get in touch with our amazing customer support team who will be happy to help guide you through resolving any issues.

3. Go to the tax reports page and download the IRS Report (Form 8949 & Schedule D).

On H&R Block

4. Sign up or log in to your H&R Block account. Please note, you'll need H&R Block Online Premium to file your crypto taxes, so select this plan when prompted. This plan costs $74.99 (+$44.99 per state filed). Don't worry, you don't need to pay until you've filed.

5. Fill out your personal data on the info tab as it relates to you. We'll only cover steps on how to file crypto taxes with H&R Block USA in these instructions - so fill out any other questions as they relate to your personal circumstances.

6. Under the income tab, fill out your regular income information (unrelated to crypto investments).

7. When you get to the question "did you receive, sell, exchange, or dispose of any cryptocurrency?", select yes.

How to report short & long-term crypto capital gains on H&R Block

8. On the page that says "Here's your income", select start next to cryptocurrency. You'll need to report your short-term and long-term capital gains separately. We'll start with short-term gains.

9. Select, add transaction.

10. You'll need to fill out the fields as follows:

  • Under service, write Koinly Tax Summary
  • Under description of property, write short-term cryptocurrency gains.
  • Leave date acquired blank.
  • Under exception to date acquired, select various - held short term gains.
  • Under date of sale, enter your last date of sale (your final taxable transaction in the financial year - you can see this date in Koinly under the transactions tab, just sort by most recent).
  • Now open your Koinly IRS Report. Your short-term gains are in Part 1 of your report. Copy your total short-term capital gains proceeds figure and paste it into the sale proceeds box in H&R Block.
  • Now copy your total short-term cost figure in your Koinly report and paste it into the cost basis box in H&R Block.

11. To report your long-term gains, you'll need to go back to cryptocurrency transactions page and select add transaction.

12. You'll need to fill out the fields as follows:

  • Under service, write Koinly Tax Summary
  • Under description of property, write long-term cryptocurrency gains.
  • Leave date acquired blank.
  • Under exception to date acquired, select various - held long term gains.
  • Under date of sale, enter your last date of sale (your final taxable transaction in the financial year - you can see this date in Koinly under the transactions tab, just sort by most recent).
  • Now open your Koinly IRS Report. Your long-term gains are in Part 2 of your report. Copy your total long-term capital gains proceeds figure and paste it into the sale proceeds box in H&R Block.
  • Now copy your total long-term cost figure in your Koinly report and paste it into the cost basis box in H&R Block.

13. Once you have reported all your gains, select next.

How to report crypto income on H&R Block

14. To report crypto income, go back to the income tab in H&R block and select add income.

15. Select see more income types.

16. Select less common income and then select add next to income not reported anywhere else.

17. You'll be taken back to the main income tab, select start next to income not reported anywhere else.

18. Fill out the fields as they pertain to your personal circumstances. Under additional income not reported anywhere else, in the description box, write a description of your income, for example, cryptocurrency mining.

19. Go back to Koinly and go to the tax reports page. You can copy your income figure from your tax summary (or if you'd like to make deductions, download the Complete Tax Report or Income Summary from Koinly). Paste this figure into the amount box on H&R Block.

20. Select next. You'll go back to the main income tab on H&R Block.

How to report crypto deductions on H&R Block

21. If you have deductions you'd like to report on H&R Block related to crypto investments, go to the deductions tab.

22. Select add deduction, then see more deductions.

23. There are a couple deductions you may be able to make relating to your crypto investments including:

  • Investment loan interest (Form 4952). You can find this under retirement and investments. You can then go to the expenses section of your Koinly Complete Tax Report and enter the figures relating to margin trade fees, margin interest fees and costs. You should not include your transfer fees in this section.
  • You may also be able to deduct the cost of your tax preparation software (like your Koinly plan and H&R Block plan). Please note, currently only self-employed taxpayers can deduct these costs, salaried workers cannot. This is a new IRS rule - which we're hoping changes soon!

24. Complete the rest of your tax return as it relates to your personal circumstances.

25. You're done!

Want to learn more about how crypto is taxed? Read our Ultimate USA Crypto Tax Guide.

How to file crypto taxes with H&R Block Canada

Watch our video, or follow the step by step instructions below to find out how to file crypto taxes with H&R Block USA.

On Koinly

1. Sign up or log in to Koinly and sync all the wallets, exchanges and blockchains you use via API or by uploading a CSV file.

2. Koinly will then calculate your crypto taxes for you including your capital gains, losses, income, expenses and more. You should check these totals to ensure you believe they are correct. If you think there are errors, get in touch with our amazing customer support team who will be happy to help guide you through resolving any issues.

3. Go to the tax reports page and download the Schedule 3 Report. If you have crypto income to report, you may also wish to download the Income Summary Report.

On H&R Block

4. Sign up or log in to your H&R Block account.

5. Fill out your personal data on the info tab as it relates to you. We'll only cover steps on how to file crypto taxes with H&R Block Canada in these instructions. You'll need to fill out the rest of your tax return as it pertains to your personal circumstances.

How to report crypto capital gains on H&R Block Canada

6. Under the prepare tab, scroll down and select investments, then continue.

7. Select the other investments as they relate to your personal circumstances, then select continue.

8. Under bought/sold securities or other property, check capital gains (or losses) in 2021 (Schedule 3), then select continue.

9. Under your capital property, select virtual currency transactions from the drop down menu.

10. Now go to your Koinly Schedule 3 Report. Take the figure from row three, line two (proceeds of dispositions) and copy and paste it into the proceeds of disposition box in H&R Block.

11. Now take the figure from row three, line three in your Schedule 3 Report (adjusted cost base) and copy and paste it into the adjusted cost base box in H&R Block.

12. If you have expenses, take the figure from row three, line four (outlays and expenses) and paste it into the expenses box on H&R Block.

13. Finally, take the figure from row three, line 5 (gain) and paste it into the box next to "what's the amount of your 2020 reserve for this capital property?"

14. Fill out the other fields as they relate to your circumstances, then select continue.

How to report crypto Income on H&R Block Canada

15. Under the prepare tab, under other types of income, check the box next to other income earned or received in 2020.

16. Select continue.

17. On the other income page, in the box next to the question "how much income did you earn or receive in 2020 that hasn't been entered anywhere else in your return?" copy and paste the total income figure from your Koinly Tax Summary or Koinly Complete Tax Report.

18. Select continue.

19. Fill out the other fields as they relate to your personal circumstances and select continue.

20. You're done!

Want to learn more about how crypto is taxed? Read our Ultimate Crypto Tax Canada Guide.

Other common questions

Still have more questions? Here's the answers to our most frequently asked questions about H&R Block crypto taxes.

Do I need to report each disposal of crypto to the IRS?

Lots of investors worry about this when filing with H&R Block, but you don't need to. Provided you have the documentation in the form of your H&R Block Form 8949 (you can use your Koinly IRS Report Form 8949 for this), you don't need to report each individual disposal on H&R Block. You can report your short-term and long-term capital gains totals instead and submit your Form 8949 alongside it to ensure you're compliant with the IRS guidelines.

Do I need to report each disposal of crypto to the CRA?

No. The CRA are only interested in your net gain or loss for the financial year, which is available on your Schedule 3 Koinly Report. If you ever face audit by the CRA, they may require more information. Koinly can help you provide this in the form of your Complete Tax Report, which has a breakdown of all your taxable transactions.

How to report Robinhood on H&R Block

Robinhood cryptocurrency taxes are complicated. Because it isn't an exclusively crypto exchange, many crypto tax calculators aren't equipped to report all your Robinhood investments. Up until 2022, this wasn't too much of an issue as Robinhood issued a 1099-B form to users and users could not move crypto off the platform, meaning the 1099-B form was likely correct and users could simply file this separately with the IRS. However, Robinhood now lets many investors move crypto on and off the platform without a means to track cost base - meaning the 1099-B form is often incorrect. While this is a long-winded explanation, it means the best way to file Robinhood crypto taxes very much depends on whether you've moved crypto off or on the platform. If you haven't moved your crypto assets between Robinhood & other exchanges, you will likely be able to use your 1099-B form to file separately on H&R Block (just add a 1099-B form). But if you have moved crypto assets between Robinhood & other exchanges, you may be better off reporting your Robinhood crypto taxes alongside your other crypto taxes using a crypto tax calculator. Here's how.

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