As of 2019, TurboTax has added support for filing your cryptocurrency transactions.
Note: TurboTax's direct cryptocurrency filing ONLY work if you used used a single exchange for 100% of your cryptocurrency transactions. If you have ever done any of the following, then the direct TurboTax CSV will compute the WRONG tax information for you:
- Used more than one cryptocurrency wallet/exchange
- Mined crypto
- Staked crypto
- Received a forked or airdropped coin
- Participated in an ICO
- Used a DeFi product
- Earned crypto interest
Instead, use the steps below to accurately file your cryptocurrency taxes using the CoinTracker-TurboTax integration. This integration has the added benefit that there is NO transaction limit.
You can use TurboTax Online (Premier or Self-Employed tiers) to file your capital gains:
1. Download your TurboTax Online File (.CSV) from CoinTracker's Tax page
2. Sign into TurboTax and go through the setup steps. When you get to the page that says "Let's get an idea of your financial picture", select I sold or traded Cryptocurrency.
3. Continue through the flow until you can select Federal > Wages & Income.
4. Continue through the flow until you see Cryptocurrency and then select Start (if you skipped selecting "I sold or traded Cryptocurrency" earlier, you can add it now by selecting the "Add more income" button instead and then returning to this step).
5. Select Yes.
6. Select CoinTracker and press Continue.
7. On the next page upload your TurboTax Capital Gains CSV file and continue.
8. Continue through the summary and then on the "Now tell us which of these transactions are taxable" page press Select all and continue (CoinTracker automatically boils down the report to only the taxable transactions).
Note: TurboTax has a bug that pressing "Select All" only selects the transactions on that particular page, so you will need to scroll through every page and click "Select All" and then continue to the next page.
9. Review the summary. It should match what CoinTracker says on the Tax page, though there may be small discrepancies because TurboTax uses the rounded values to two decimal places for the calculations. It's fine to keep the Exchange listed as CoinTracker. Select Done.
10. That's it — you're done! If you need to add more transactions you can select Edit/Add for more entries. Also please note that this will compute your capital gains into your tax return, however it will NOT include the income information from the Tax page. That information needs to be added separately & manually into your other income in TurboTax.
I'm Getting an Error
If you are getting an error (e.g. "Validation failed", "Make sure your file has columns for Currency Name, Purchase Date, Cost Basis, Date sold, and Proceeds", or other Error) when you try to upload your CSV file to TurboTax, please double check the following:
- Ensure that you are using the TurboTax Online File from the CoinTracker Tax page (and not any other file)
- Ensure that your cumulative number of taxable entries is less than or equal to 2,000 (including previous upload attempts)
If you have already gone above 2,000, you can clear your TurboTax account for the current year by pressing the Clear & Start Over button. Then simply re-upload the file, keeping in mind to stay below the 2,000 entry aggregate limit.
If you are still facing issues, please contact us via Intercom support.
Taxable Event Limit
TurboTax Online forces a 2,000 taxable row limit via CSV upload. CoinTracker however works around this by automatically auto-aggregating your TurboTax CSV per coin and per long/short-term if you have more than this number of taxable events. This means that even if you have thousands of taxable events, you'll still be able to directly upload to TurboTax with the instructions above.
You should still keep your Form 8949 from CoinTracker for your records.
Note: TurboTax also offers an option right before filing to print out your forms and file a hardcopy return (instead of e-Filing). If you select this option, you can send in your complete 8949 as part of that filing.
If you are using TurboTax CD/download version (or want to switch from the online version) you can follow the steps below. Note that TurboTax has a hard limit of 3,000 entries in the CD/download version of TurboTax so CoinTracker automatically aggregates your taxable events per coin and per long/short-term if you have more than 3,000 taxable events (you should still keep your Form 8949 from CoinTracker for your records).
- Open TurboTax for your current return. Select File > Import > From Accounting Software (Windows) or File > Import > From TXF Files (Mac)
- Select Other Financial Software (TXF file) and click Continue
- Click Browse Files..., find the .txf file from CoinTracker, and select Import Now
- The file should show up as 1099-B. Select Import Now
- Click Done on the next screen
- From the top menu, navigate to PERSONAL > Personal Income and scroll down to Investment Income. You should see the new entries added here
- Click Start (or Update if you have already been here) next to Stocks, Mutual Funds, Bonds, Other
- Notice that Needs info? says YES. There is no Institution Name set for the data because crypto data is not set to one institution. This is expected and you can ignore this warning
- Click Edit to see the information that has been entered or Done to finish.
Disclaimer: CoinTracker is provided for informational purposes only. This service is not intended to substitute for tax, audit, accounting, investment, financial, nor legal advice. For financial, tax, or legal advice please consult your own professional. The information on CoinTracker is subject to change without notice. All information is provided "as is." CoinTracker disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your tax returns. Please see our full disclaimer.