What are the steps to accurately report my cryptocurrency holdings on TurboTax Deluxe for federal and state taxes in 2021?

3 answers

• Kaas AbdiSep 13, 2022 · 3 years ago
  Sure! Reporting your cryptocurrency holdings on TurboTax Deluxe for federal and state taxes in 2021 is an important step to ensure compliance. Here's a step-by-step process: 1. Gather all your cryptocurrency transaction records, including buys, sells, trades, and any income received. 2. Determine the cost basis for each transaction. This is the original value of the cryptocurrency when acquired. 3. Calculate the capital gains or losses for each transaction by subtracting the cost basis from the selling price. 4. Enter the total capital gains or losses on Schedule D of your federal tax return. 5. If required, report your cryptocurrency holdings on your state tax return as well. 6. Make sure to include any additional information or forms required by your state. Remember, it's always a good idea to consult with a tax professional or accountant to ensure accuracy and compliance with tax laws.
  903

  452
• Hari SarmahAug 20, 2021 · 4 years ago
  No worries! I got you covered. To accurately report your cryptocurrency holdings on TurboTax Deluxe for federal and state taxes in 2021, follow these steps: 1. Collect all the necessary information about your cryptocurrency transactions, such as dates, amounts, and transaction types. 2. Determine the cost basis for each transaction. This is the amount you initially paid for the cryptocurrency. 3. Calculate the capital gains or losses for each transaction by subtracting the cost basis from the selling price. 4. Enter the total capital gains or losses on Schedule D of your federal tax return. 5. If your state requires reporting of cryptocurrency holdings, follow the specific instructions provided by your state tax agency. 6. Double-check your entries and make sure all the information is accurate. Remember, it's always a good idea to consult with a tax professional if you have any doubts or questions.
  913

  305
• RiskmanNov 29, 2021 · 4 years ago
  Reporting your cryptocurrency holdings on TurboTax Deluxe for federal and state taxes in 2021 is a breeze! Just follow these simple steps: 1. Open TurboTax Deluxe and navigate to the section for investment income. 2. Enter the details of each cryptocurrency transaction, including the date, type, and amount. 3. TurboTax will automatically calculate the capital gains or losses based on the information provided. 4. Review the calculated amounts and make any necessary adjustments. 5. Continue with the rest of your tax return, following the prompts and entering any additional information as required. If you have any specific questions or encounter any issues, TurboTax has a helpful support team that can assist you. Happy filing!
  735

  184