Master TurboTax Desktop for Crypto: Streamline your 2024 tax filing with our guide on entering crypto transactions, optimizing deductions, and more.
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<div fs-richtext-component="info-box" class="info-box"><div class="flex-info-card"><img src="https://assets-global.website-files.com/65098a145ece52db42b9c274/650c6f4cef4c34160eab4440_Info.svg" loading="eager" width="64" height="64" alt="" class="icon-info-box"><div fs-richtext-component="info-box-text" class="info-box-content"><p class="color-neutral-800">Starting January 1, 2024, the Infrastructure Investment and Jobs Act requires reporting 10,000$+ crypto transactions to the IRS. Yet, the Treasury and IRS deferred digital asset reporting until new regulations are set, promising future guidance and public input on these rules. We keep you informed! </p></div></div></div>
TurboTax, by Intuit, is the most popular tax preparation tool for American taxpayers to file their individual income tax return. Their desktop version provides flexibility to taxpayers looking to file multiple returns or needing additional support for self-employed or business tax reporting. With your Blockpit tax report, you can enter your crypto information to easily file your crypto taxes. In this article, we guide you through the process of reporting your crypto taxes with TurboTax Desktop.
For comprehensive insights into additional crypto tax topics, be sure to consult our guide.
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If this is the first time you are using TurboTax Desktop, you will need to spend some time entering your personal information. During this setup, you will be given the option to choose whether you want TurboTax to guide you or let you work on your tax return at your own pace. Regardless of your choice, the input screens will be the same.
One of the biggest advantages of TurboTax Desktop over TurboTax Online is that you can actively flip back and forth between their EasyStep guided input and your actual tax forms, so you can see how your Form 1040 is progressing as you prepare your return.
As you get started, navigate to the Forms view, and make sure to check yes if you can answer yes to the question: “At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”
The easiest way to report your cryptocurrency gains and losses is to summarize your gains into short and long term. This will save you a lot of time, but you will need to send an attachment with detailed information.
For additional information on filing Form 8949 and Schedule D, check out our article.
We now have to enter any other taxable crypto income such as mining, staking, airdrops or hard forks. Keep in mind that if your income is from a trade or business, such as a Bitcoin mining operation, you will need to report as such. For everyone else, how you report this income will depend on whether you:
For further details on handling 1099 forms, refer to our guide on Crypto Forms 1099.
If you filed with TurboTax in the prior year and you either used that return or imported your TurboTax Online return, any capital loss carryovers should be automatically rolled over into this year. However, it is a good idea to verify that these amounts are correct as they impact your current year tax return. If this is your first time using TurboTax Desktop, you will need to enter this information regardless.
Crypto tax software significantly simplifies optimizing cryptocurrency taxes. Navigating the complexities of trades, staking, and airdrops becomes straightforward with the right tools. Manual management is cumbersome and error-prone, risking penalties for non-compliance.
Blockpit's software streamlines this process. It offers seamless integration through API, Public Keys, or CSV, compiling all cryptocurrency transactions efficiently. It automates tax calculations according to the latest regulations, ensuring compliance. Moreover, Blockpit provides expert support to ease the tax filing process.
By using Blockpit, you can focus on maximizing investments instead of tax reporting complexities. It ensures compliance is straightforward, offering a stress-free approach to managing crypto taxes.
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Blockpit creates the most comprehensive crypto tax reports in PDF format. The report provides information about all your balances and transactions and can be used as proof of origin with banks or tax advisors. It contains all relevant transactions of your account in the selected tax year and shows details such as timestamp, amount, asset, costs and fees of the individual transactions.
Using Blockpit couldn’t be easier:
Blockpit offers direct integrations for crypto exchanges, wallets and DeFi protocols. Automatically import your transactions via API integration, wallet address synchronization, or by manually uploading an Excel file.
Discover all crypto integrations
Blockpit offers smart insights and suggestions to optimize your tax report, fix issues, add missing values and to validate your transactions.
Generate your compliant tax report with the click of a button. Our tax engine calculates your tax report on the basis of the US tax framework.