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!
Does TaxAct handle cryptocurrency?
Yes - but it's limited. TaxAct is a great self-filing tax tool, but it isn't purpose built to handle crypto taxes. So you can manually enter your crypto transactions, but for most investors this is too time consuming to be a realistic option - which is why many crypto investors opt to use dedicated crypto tax software like Koinly in combination with TaxAct.
How do I get a a TaxAct crypto import?
With a crypto tax tool like Koinly! All you need to do is connect the wallets, exchanges or blockchains you're using to Koinly and it'll do the rest for you, calculating your crypto gains, losses, income, expenses and more. Once it's done this, Koinly generates your TaxAct Report, ready to import to TaxAct when you're filing.
Let's take a look at how it works.
TaxAct & Koinly
First up, let's look at how Koinly generates the tax report that TaxAct needs.
How to do TaxAct cryptocurrency taxes with Koinly
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:
Prefer step-by-step instructions? We got you.
Log in to your Koinly account and head to the tax reports page.
Download the TaxAct Report.
Log in to your TaxAct account (you'll need TaxAct Premier to file crypto taxes)
Fill out your personal data as it relates to your circumstances.
Once you've completed the personal section, you'll need to answer a series of questions. Many of these you'll need to answer based on your personal circumstances - we are only guiding you on how to file your crypto taxes. For question 2, "tell us any additional income you had", select less common income.
Now check "I have different income not listed".
For question 3, "did you participate in any of these investments or savings?", select cryptocurrency.
Check the boxes as they apply to your crypto investments.
Complete question 4 as it relates to your personal circumstances and select continue.
Once you've completed these sections, you'll be taken to the "cryptocurrency transactions" page. Select CSV import.
Upload your Koinly TaxAct report.
Double-check your CSV file has imported correctly. Description should match up with asset, and your date, sales proceeds and cost or other basis columns should match. Once you've checked, select import in the top left corner of the spreadsheet and then click the import button in the bottom left corner.
Select close and continue.
You'll see a cryptocurrency summary page where you can check through your transactions and calculations if you want to. Select continue.
You'll then go to the less common income page. Scroll down to "other income". Report any crypto income - like from staking, mining or airdrops here. You can find your income total on the tax report page under summary in Koinly (or in the Complete Tax Report if you prefer). You can separate each kind of income or just report your total.
If you'd like to claim a deduction relating to your crypto investments, in the left hand menu under "Federal", select deductions.
Next to itemized deductions, select review.
Select investment interest.
You can find your expenses (unrelated to your capital gains and losses) in your Koinly Complete Tax Report. You can copy and paste the total figure from here. This would include expenses like costs, margin trade fees, margin interest fees and more.