Are you using TurboTax for your Canada crypto taxes but have no idea where to begin? We got you. Here's our step-by-step guide on how to file your crypto taxes with Koinly and TurboTax Canada for 2022.
How to do TurboTax Canada crypto taxes with Koinly
Watch our complete TurboTax Canada video guide below, or follow the step-by-step instructions underneath.
First up - you're going to need a Koinly account and a TurboTax Canada account. You'll need to do a couple of steps first to get them all set up and ready to file your crypto taxes with the CRA.
Please note, for these instructions - we're using the online version of TurboTax Canada, the desktop instructions may differ slightly.
1. Sign up and set up your Koinly account by connecting all your wallets, exchanges and blockchains. Make sure your settings are correct for Canada, i.e. CAD, Adjusted Cost Basis method and tax year.
2. Download the Complete Tax Report from the tax report page in Koinly. You'll use this information to copy and paste into TurboTax.
On TurboTax Canada
1. Sign up or log in to your TurboTax Canada account.
2. Select “start a new 2021 return”.
3. Please note you'll need the Premier Plan or higher on both the online and desktop versions of TurboTax Canada to do your crypto taxes. Select the Premier "Start for free" option. You can pay at the end.
4. Fill out your personal information for your TurboTax account.
You need to report your crypto capital income and your crypto capital gains separately in TurboTax Canada. We’ll walk you through how to do both.
If you’re not sure what counts as income and what counts as a capital gain - check out our Canada crypto tax guide.
How to report crypto capital gains in TurboTax Canada
1. Head to the Income section in TurboTax Canada. Answer the other questions in this section out as they relate to your personal circumstances.
2. For crypto capital gains, select "yes" for the question "did you have income from investments such as interest earned on investments, the sale of stocks or stock options, cryptocurrency/token transactions, the sale of real property, income from rental property or other related investment expenses?"
6. A new group of questions will appear below this section once you've selected "yes". Answer the other questions as they relate to your personal circumstances. Select "yes" for the question "did you buy or sell cryptocurrency, tokens or other virtual currency?"
7. A new option will appear below the question once you've selected "yes". Check "I bought virtual currency" and "I sold virtual currency" as it relates to your individual investments.
8. Answer the expenses section as it relates to your personal circumstances, then move onto the capital gains section. Please note the capital gains section in TurboTax Canada relates to all capital gains, so if you have additional capital gains outside your Koinly report you'll need to combine these figures with the figures in your Koinly crypto tax report. For this guide, we are assuming you're only reporting crypto investments in TurboTax Canada.
9. Find the Capital Gains Summary Page in your Koinly Complete Tax Report. On the Capital Gains page in TurboTax, you'll see several boxes you need to enter figures into, like so:
10. From the drop down menu next to "type of capital property disposed of", select "bonds/other properties".
11. For “percentage claimed on a spouse's return if applicable” - fill this out relating to your personal circumstances. You can see more on this in our guide.
12. You can ignore the following boxes as they relate to bonds, not crypto assets:
# of units for shares or face value
Corporation name and share class or name of issuer
Maturity date - bonds (dd/mm/yyyy)
Year of acquisition (yyyy)
Date of disposition (dd/yyyy)
13. For “Proceeds of Disposition”, copy and paste the "Proceeds from sales" figure from your Complete Tax Report from Koinly.
14. For "Adjusted cost base", copy and paste the "Acquisition costs" figure from your Complete Tax Report from Koinly.
15.For "Outlays and expenses” copy and paste the total figure from the Expenses section of your Complete Tax Report from Koinly.
16. Select done.
17. If you have any crypto capital losses to report from previous years, head to the top right corner and select “find”.
18. Now search losses. Select losses and hit go.
19. On the new page, check the "Net Capital Loss Carry Forward" option. Now select continue and enter your capital loss information from previous years as it relates to your personal circumstances.
20. You’re done reporting your crypto capital gains and losses in TurboTax Canada!
How to report crypto income in TurboTax Canada
1. In your TurboTax Canada account, in the top right corner select “find”then search "income".
2. Select “investments”, then go.
3. You may already have the first box "Capital Gains or Losses" checked if you've reported your crypto capital gains already. Check the second box titled "Interest and Other Investment Income". Select “continue”.
4. TurboTax may ask you to review your Capital Gains Summary. If you've already completed your crypto capital gains reporting, you can skip this section by selecting "done”. If you have gains to report, follow the steps prior to this section.
5. On the "Interest and Other Investment Income - Summary" page, enter your crypto income in the first box "Interest and other investment income". You can find this in the Income Section of your Complete Tax Report from Koinly - it's the total figure you want to copy and paste into TurboTax Canada.
6. For the "specify" box, describe your income. For example "crypto income". You can be as specific as you like.
7. Select "Done with Interest and Other Investment Income".
8. You’re done reporting your crypto income in TurboTax Canada!