Okay, so you imported all of your transaction history from your cryptocurrency exchanges and generated your crypto tax reports with CryptoTrader.Tax — nice work. Now you might be wondering, what do I actually do with these different tax reports? This article breaks down the next steps for including your crypto tax reports with your entire tax return. As you will see, you have a few different options depending on how you typically file your taxes every year:
If you use TurboTax, TaxAct, or another tax prep platform, you can import your crypto tax reports directly. Once you import these files, your work is done! TurboTax and TaxAct take care of the rest of your tax return for you.
If you are completing your taxes in TurboTax online, you should download the “TurboTax Online” CSV from the downloads option on your report dashboard. You will then simply import this CSV file into the TurboTax cryptocurrency section.
We walk through this complete step-by-step process for importing your TurboTax cryptocurrency file here.
If you are using the Desktop version of TurboTax, you will download the “Tax Exchange Format”. Follow this guide which walks through the step-by-step for TurboTax desktop editions.
If you use TaxAct to file your taxes, you can take the same approach but instead download the “TaxAct” file from the downloads option on your report dashboard. For a step-by-step walk-through of this process, follow our TaxAct guide.
If you are using software other than TaxAct or TurboTax, it is likely that you can still import your gains and losses into the program. Typically, you need to find an option to import a file into your “investments” section of the program. You should use your “Short Term Gains” and “Long Term Gains” CSV files that CryptoTrader.Tax exports for this process.
If you have an accountant who typically files your tax return for you, you can simply invite them to review your tax report and download it directly from CryptoTrader.Tax. You can easily do this by navigating to your report dashboard.
Inviting your tax professional will automatically send out an email to him or her. From this email, your tax pro can login and review your information and download the necessary reports that they need to file your taxes.
If you file your taxes yourself, you should download the 8949 Form from your downloads options. Transfer your net capital gain or loss from this form onto your 1040 Schedule D. If you have any ordinary income from cryptocurrency (mining, staking, etc), you will find that in your “Income Report”. Be sure to include this in the income section of your tax return.
You can also read through our complete guide on how to file your cryptocurrency taxes.
CryptoTrader.Tax automatically consolidates Form 8949 in accordance with exception 2 of the IRS 8949 instructions when you have a high volume of trades. In accordance with this exception, you should include the detailed line-by-line transaction history with your tax return filing—this is your Short Term Gains CSV.
If you e-file your return with the consolidated Form 8949, you should mail in the complete Short Term Gains CSV to the IRS. Read about the exact step by step process for mailing in your detailed transactions here.
Disclaimer - This post is for informational purposes only and should not be construed as tax or investment advice. Please speak to your own tax expert, CPA or tax attorney on how you should treat taxation of digital currencies. For a more detailed look at how cryptocurrencies are taxed, please read our guide: The Complete Guide to Cryptocurrency Taxes.