How to File Your Bitcoin and Crypto Taxes with TaxAct
You can easily file your bitcoin and crypto taxes with popular tax filing software TaxAct by importing your crypto tax reports from CryptoTrader.Tax. This guide walks through the step by step process, so that you can quickly file your cryptocurrency transactions.
It might be helpful to first read through our complete guide for a detailed overview of how crypto taxes work.
*Note* - Reporting cryptocurrency transactions requires the paid version of TaxAct that supports investments. As of 2018, this version costs roughly $59.
1. Login to your TaxAct Account
2. Navigate to the Capital Gains and Losses Review section
Federal > Income > Review Capital Gains and Losses
3. On the Capital Gains or Losses - Summary page, select “Review” for form 8949
4. Select “New Copy of Form 8949 Attachment”
*Because you do not receive 1099-B forms from your cryptocurrency exchanges like you would from a stock broker, you need to complete form 8949 to account for your crypto transactions. This is the form that CryptoTrader.Tax automatically creates for you.
5. Check the box stating that you will be attaching a statement of your transactions
*You will attach your detailed 8949 at the very end of the process after you pay for the TaxAct software.
6. Enter CryptoTrader.Tax as your broker
7. Select “New copy of form 8949”
8. Select your reporting category
Here you should reference your 8949 that you received from CryptoTrader.Tax to determine if you have short and long term gains to report. Many people will only have short term; however, this example will showcase how to handle both short and long term gains/losses.
From the example 8949 below, you can see that we are on the first page which is SHORT TERM gains. Box C is checked because these transactions were not reported to you on a form 1099-B.
From this example 8949, you can see that we will select “Short-Term Category C” within TaxAct to first report our short term gains. Then click continue.
9. Transfer your Net Proceeds and Net Cost basis to TaxAct from your 8949
Your net proceeds can be found at the bottom of the 8949 in column D, and your net cost basis can be found in column E. Transfer these totals onto the TaxAct 8949 amounts page. You can leave the adjustments field blank.
*If you have multiple pages from your 8949, you will need to repeat these steps and create an entry for each page of 8949 that you have.
*If you received a consolidated 8949 from CryptoTrader.Tax that only contains one line because you had a high volume of trades, your net proceeds and cost basis numbers will be found at the top of the 8949 page, not the bottom.
10. You will see a summary of your transactions after completing
*Note that TaxAct rounds to the nearest dollar
11. Repeat these steps to create a new 8949 entry that details your Long Term Gains
Long term gains are detailed on the last page of the 8949 export. Instead of Short Term Category C, you would select Long Term Category F. It is normal if you do not have any long term gains/losses.
12. Complete the rest of your TaxAct profile and tax return
Once you complete your return in TaxAct, you can either E-file it or you can print it out and mail it in.
After completing all of the final steps and paying for your report, you will be prompted by TaxAct to attach the 8949 form that you summarized in the above steps. *See the below prompts.
If your 8949 that you received from CryptoTrader.Tax details all of your cryptocurrency transactions and it is NOT simply one line, you will attach that PDF here in TaxAct and submit your return. No other steps are required.
If your 8949 contains one line that says “see attached statement” like the example below, you should still upload this document into TaxAct and submit your return, but you will also have to print out and mail in your CSV file that details all of your trades that CryptoTrader.Tax gave you. We detail the easy mailing process here.
Have any questions? Let us know!