BitcoinTaxes and Intuit® have partnered for this year's tax season and can now help users import their cryptocurrency capital gains directly into TurboTax Online®.
Users of Bitcoin.Tax can also benefit by saving up to $15 on TurboTax federal products.
Importing your capital gains
Including your cryptocurrency capital gains information into your tax forms has been quite difficult due to the basic support from the major online tax preparation services.
Also, the current IRS forms are not really designed for cryptocurrency users that have to report every tax event. The standard Form 8949 only allows for 14 lines per page, but trading on multiple exchanges can easily generate many more lines because of how lots are split and cost bases determined.
A trader could end up with a 5,000 page PDF to print!
Fortunately, IRS Form 8949 instructions do allow for printing your own condensed version, but this could still result in a 800+ page file that must be printed and mailed to the IRS.
While Intuit's desktop/CD version of TurboTax has limited import support for the TXF file format, it has not been available for users of the web-based TurboTax Online versions until now.
Importing into TurboTax Online from Bitcoin.Tax
Filing your 2018 taxes has just become much easier with the addition of a new TurboTax Online download report file. BitcoinTaxes and the TurboTax Online team have created a file format that can be exported from your Bitcoin.Tax account and imported directly into the TurboTax website.
This means you can use the power of Bitcoin.Tax to calculate your crypto capital gains along with the convenience of TurboTax to prepare and file your taxes.
Just use Bitcoin.Tax tax as normal, go to the Reports tab and click the Download button. The new option for "TurboTax Online" will download the file you need.
TurboTax Online has a new Cryptocurrency section:
- click Federal in the menu on the left
- choose Income & Expenses at the top
- scroll down into All Income and clicking the Investment Income section
- click the Start or Revisit button next to the new Cryptocurrency option
Importing more than 500 entries
Please note that TurboTax have limited their import to only 500 entries for the 2018 tax year. They are working on increasing this limit either this year or next.
If you have more than 500 entries in your capital gains report, you can either try and reduce the number or look into alternatives methods.
- Use the Options button in the Reports tab of Bitcoin.Tax and enable Show Rounded and Ignore Zero Gains. This will round to the nearest dollar and remove any entries where the gain is zero.
- Switch to using the CD / Desktop version of TurboTax for Windows or Mac. This can still import up to 2,000 entries using the "TXF File" report. Please see our TurboTax import instructions.
- Use another online tax service such as TaxACT or H&R Block than can handle larger file limits.
- Download the "Form 8949 Statement". You can print this yourself and then send the statement into the IRS. Please follow the IRS Form 8949 Instructions for more information or speak with your tax professional.
BitcoinTaxes gives you up to $15 off when purchasing TurboTax by passing 100% of any commissions onto our users when clicking our link below.
Bitcoin.Tax is the leading capital gains and income tax calculator for Bitcoin and cryptocurrencies. You can sign up for free at https://bitcoin.tax/signup.
BitcoinTaxes does not provide financial, tax planning or tax advice. Please speak to your own tax expert, CPA or tax attorney on how you should treat taxation of digital currencies.