Cryptocurrencies are generally taxed in two ways: capital gains and income. Capital gains and losses result from disposing of your crypto (selling, exchanging for another crypto, or making a purchase) and are reported on Form 8949 on your tax return. Other forms of crypto income (airdrops, mining income, staking or interest income, etc.) are typically reported on Schedule 1 as "Other income". This assumes you aren't in a business or trade related to your crypto activity - that activity gets reported on Schedule C.
CoinLedger exports capital gains/loss files formatted for TurboTax Online or TurboTax Desktop/CD version. It's important to note that these TurboTax gains/loss files do not contain crypto income received. This is because cryptocurrency income has to be entered in a separate section from within TurboTax.
You can find your income from crypto events (like mining, staking etc) reported in your local FIAT currency within your Income Report which is exported by CoinLedger. You can also see a breakdown of each transaction type in the Taxable Income display in Step 4.
From there you will need to decide how you want to input each income type into TurboTax. This guide is not intended to function as tax advice, so if you are at all unsure of how to enter your crypto income within TurboTax you should consult with a tax professional.
The following sections walk step-by-step through the process of entering crypto income into different sections within TurboTax.
You can also check out expert advice from TurboTax here.
Entering Crypto Interest Income into the 1099-INT Section in TurboTax
Navigate to Wages & Income and select Add other income
Select Interest on 1099-INT and then click Yes.
Select Change how I enter my form and then select Type it in myself.
Enter the name of the exchange or platform where you received crypto interest distributions and then enter the total amount of your crypto interest income in USD. Then select Continue.
From within CoinLedger this is displayed in Step 4 under the Taxable Income display.
You have now entered your crypto interest income! Answer the other questions if they apply and then select Continue.
See step-by-step instructions for this process below!
Entering Other Crypto Income into the Miscellaneous Income section from within TurboTax
Navigate to Wages & Income and select Add more income.
Scroll down to the bottom of the page and select Less Common Income.
Scroll down and select Miscellaneous Income, 1099-A, 1099-C.
Select Other reportable income.
Select Yes at this stage.
Enter the amount in USD for the crypto income received and then click Continue.
When this screen pops up again, you can select No if you have no other crypto income to report.
You will know that the income has been successfully imported if you see Revisit. Click Continue to move on.
See step-by-step instructions for this process in the video below!