How To Import Crypto into TurboTax

turbotax header

If you make more than a handful of trades over the fiscal year, calculating your tax liability when April rolls around can be a painful process.

Luckily, there are a number of third-party services that make it much simpler. Using software from Cryptotrader.tax, Koinly, or Cointracker.io - among others - you can quickly and easily import all your trades, and export everything in a .csv database or IRS Form 8949. This can then be imported into Turbotax, which will calculate your capital gains and losses when preparing your return.

We’ve reviewed the best bitcoin and crypto tax software, now we’re going to focus on the next step of the process: getting that data into Turbotax.

Before we get started, it’s important to have a general understanding of the regulations that apply to cryptocurrency. Let’s take a quick look at the way cryptocurrency is treated and taxed by the IRS. If you’re not in the U.S., Koinly has a great list of country-specific guides, covering Canada, the UK, Australia, and Denmark.

  • TAX SOFTWARE
  • CryptoTrader.Tax
    • Easy import from nearly any crypto exchange
    • Can be uploaded to TurboTax
    • Support for many exchanges
  • Koinly
    • Very clean interface makes it easy to use
    • Supports over 300 exchanges
    • Can export US and Canadian tax forms
  • Accointing
    • Easily print tax reports at any time
    • Connect 4500 coins form all exchanges and wallets
    • Supports USA, UK, Austria, Germany, and Switzerland

Taxation of Cryptocurrency

Cryptocurrencies such as Bitcoin and Ethereum are classified as property under federal law. This means that the same tax obligations apply to crypto as do to physical property such as real estate. The main implication of this is that most cryptocurrency transactions are subject to capital gains tax.

The following are considered taxable events:

tax bill

The following are not considered taxable events:

Proceeds of crypto mining are generally treated as income and taxed as such.

When a taxable event occurs, capital gains or losses are calculated by subtracting the purchase price (also known as the cost-basis) from the selling price. For example, if you bought one Bitcoin for USD$5k in 2018 and sold it for USD$10k in 2020, you would realize a capital gain of $5k, or 100%.

This capital gain would be subject to taxation at the long-term capital gains tax rate, as you held it for more than one year. This rate varies between 0% and 20%, depending on your taxable income and filing status.

Capital gains realized less than one year after purchase are added to your income and taxed at the applicable rate.

form 1040 bitcoin

To accurately calculate the capital gains tax due on every transaction, you would need to have records of the purchase price of Asset A in USD, the conversion rate of Asset A to Asset B, the value of Asset B at the time of exchange in USD, and the amount of Asset B purchased.

These data are logged by your exchange, but sifting through them manually is a painstaking task. Let’s take a look at how to do it using crypto tax software.

A completed Form 8949.

Importing Transactions

Crypto tax software integrates with your exchange’s API to fetch and compile a list of all your transactions.

Koinly's service supports over 300 exchanges.


Exchanges such as Binance also allow you to manually export your trade history.

binance export

Once you have imported your trade history, the crypto tax software will compile this and give you a rundown of total capital gains or losses.

Contracker.io interface.


You can now export your data. IRS Form 8949 (Sales and Other Dispositions of Capital Assets) is the most common way to do this, and it’s always a good idea to keep a copy for your own records. You can also export directly to TurboTax’s proprietary online format.

Koinly and other services allow you to export in a range of different formats.


Filing With Turbotax

Filing your cryptocurrency capital gains/losses with TurboTax is simple. For this tutorial, we’ll be using the online platform.

To file investment gains and/or losses, you’ll need TurboTax Premier or Self-Employed.

When filling out your financial picture, be sure to select I sold or traded cryptocurreny.

1. Navigate to cryptocurrency

Once you have begun your return and filled out the initial prompts, navigate to the Cryptocurrency tab by choosing Federal > Wages & Income > Cryptocurrency

sold or traded

2. Add cryptocurrency data

Here, you can link the third-party service you used to prepare your trade history, or choose to enter information manually.

cryptocurrency info

3. Import

Upload the .csv file that you prepared earlier.

import transaction

4. Review

Check the summary of your taxable transactions to ensure that everything looks right.

review

5. Submit

That’s it! You’ve successfully imported your cryptocurrency transactions into TurboTax and can rest assured that your capital gains and/or losses will be accurately reported.

Make sure to check out these other crypto tax services as well to find the right one for you!

  • TAX SOFTWARE
  • CryptoTrader.Tax
    • Easy import from nearly any crypto exchange
    • Can be uploaded to TurboTax
    • Support for many exchanges
  • Koinly
    • Very clean interface makes it easy to use
    • Supports over 300 exchanges
    • Can export US and Canadian tax forms
  • Accointing
    • Easily print tax reports at any time
    • Connect 4500 coins form all exchanges and wallets
    • Supports USA, UK, Austria, Germany, and Switzerland

Crypto tax software makes it easy to properly file taxes on your cryptocurrency trading and protects you in the case of an audit.