banner border
TurboTax crypto taxes 2023

General

How To Do Your TurboTax Crypto Taxes in 2023

Last updated: Thursday, 27 October 2022

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. Using TurboTax Premier you can manually add your crypto transactions, but if you're an active investor, this is time consuming. Which is why most investors opt to use TurboTax with crypto tax software like Koinly.

We'll take a look at how it works, but before you can report your crypto taxes with TurboTax you need to calculate your crypto taxes - so let's take a look at how it works.

Koinly & TurboTax

Let's look at how Koinly generates the crypto tax report that TurboTax needs. Hundreds of people have given Koinly 5 star reviews on Trustpilot as the best crypto turbo tax integration. Here's why.

How to report crypto taxes on TurboTax 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 to do your TurboTax cryptocurrency taxes with Koinly. We're giving instructions for TurboTax Online in our video, but if you're using TurboTax Desktop - the steps should be very similar.

TurboTax 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 for your reporting crypto taxes in TurboTax

On Koinly

1. Sign up and set up your Koinly account (refer to video above!)

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.

Download TurboTax online report from Koinly

On TurboTax

1. 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.

Fill out your personal information on TurboTax

There's three different sections you'll need to head in your TurboTax account to do your crypto taxes:

  • Capital gains and losses.
  • Crypto income.
  • Crypto related expenses.

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. In TurboTax - in the left hand menu, select Federal.

2. Scroll down to investments and savings and select show more.

3. Next to stocks, cryptocurrency, mutual funds, bonds, other, select start.

Add crypto capital gains to TurboTax

4. Select add investments then continue.

5. Select enter a different way in the bottom right.

6. Select cryptocurrency then continue.

Select your investment type in TurboTax

7. Select upload it from my computer/use a CSV file then continue.

Upload Koinly CSV file to TurboTax

8. Under 'what's the name of the crypto service you used?' from the drop down tab select 'other' and for name enter 'Koinly' then hit continue.

9. Upload your Koinly TurboTax Online report. Please note, If you're using TurboTax Desktop, you can upload your Koinly crypto tax file by going to 'file', then 'import', then 'from accounting software'.

10. Double check your summary to ensure the totals, number of disposals, proceeds and cost basis are correct.

Review your uploaded Koinly file on TurboTax

11. Select continue, then confirm, then next. You're done with this section!

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. In TurboTax - in the left hand menu, select Federal.

2. Scroll down to less common income and select show more.

3. Next to miscellaneous income, select start.

Add your crypto income in TurboTax

4. Next to other reportable income, select start.

Add other reportable income in TurboTax

5. Select yes.

6. Enter a description of your income and the amount of income in USD. If you have income from various sources, for example mining, staking and airdrops - you can choose to split these into different transactions by repeating these steps or simply enter the total for all crypto income for the financial year.

Describe your crypto income in TurboTax

7. Select continue and then done. You're done with this section!

1. In TurboTax - in the left hand menu, select Federal.

2. In the top navigation select deductions & credits.

Add your crypto tax deductions in TurboTax

3. Scroll down to other deductible expenses and select show more.

4. Next to other deductible expenses, select start.

Add other deductible expenses in TurboTax

5. Answer the questions after you add your expenses as they relate to your personal circumstances. Where TurboTax asks "did you have any of these less common expenses?" select yes and add your crypto expenses. You can add a variety of crypto-related expenses here - provided they aren't part of your capital gains.

Add your crypto expenses in TurboTax

6. Head back to other deductible expenses and select show more.

7. Select start next to tax preparation fees. You can deduct the cost of your tax preparation fees from your return - although please note the IRS has issued more guidance on this suggestions salaried workers cannot do this and only self-employed workers can, so please fill this out as it relates to your circumstances.

Add your crypto tax preparation fees in TurboTax

8. Enter the amount for your expenses and select continue. You're done with this section!

Add your crypto tax preparation fee amount in TurboTax

Finishing up your TurboTax cryptocurrency taxes

You'll need to finish up your TurboTax report as it relates to your unique circumstances - so your income, any other investments, your other eligible deductions and so on. Once you've entered all your information - you've got a couple more steps to finish up.

1. In the left hand menu, select review.

2. You'll be presented with a "to do list" to check.

View your TurboTax to do list

3. You'll be given an option to review each trade... which is time consuming to say the least. You don't need to to this - especially if you're pushed for time. The IRS only cares about the end net result and not the constituent transactions, so you can skip this step by scrolling down and selecting continue.

Skip your review in TurboTax

4. TurboTax will also ask whether you received a 1099-B form for your disposal(s) and how your asset(s) was acquired. You do not have to say whether you received a 1099-B form - it's merely an administrative query for the IRS’s own internal reconciliation purposes. The IRS should not penalize anyone for ‘incorrectly’ stating whether they have or have not received a 1099B form - as long as you have not missed out any reportable income.

5. You're done with your crypto taxes!

FAQs

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

Where do I enter crypto on TurboTax?

It depends on what you're reporting. You'll report crypto gains and losses under investments and crypto income under less common 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 around 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 700+ glowing Trustpilot reviews.

How much does TurboTax online cost?

TurboTax has many pricing options - from free to $89 for the premier plan or $119 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 each trade. You do not need to do this - especially if you're pushed for time. Scroll to the bottom of the screen and select continue if you do not wish to do this.

CTA

Share:

Få vores historier leveret

Fra os til din indbakke, ugentligt.