TurboTax is a user-friendly software for the processing and electronic filing of tax returns for individuals and businesses in the US and Canada.
The software allows free processing and e-filing of tax returns up to $28,500 gross income in the US, and it has now been updated to allow users to tax their cryptocurrencies. Earlier this year, the tax preparation software launched a new section for crypto taxation on its site. This will only be available to those who have purchased the 2018 Premier version and above.
The newly announced service allows users to import data straight from major cryptocurrency exchanges such as Coinbase, Poloniex, and Gemini. Before this, users would have to manually enter each taxable transaction, which could potentially take hours. But now, users can upload up to 100 Coinbase transactions through compatible files straight to TurboTax Premier.
US and Canadian residents will only need to report cryptocurrency as an income if they have done the following:
- If any cryptocurrency was converted into regular currency like US dollars
- If a user has sold any cryptocurrency
- If cryptocurrency has been spent to pay for goods or services
- And finally, if a user has received free coins through an airdrop or a fork
A user’s cryptocurrency transactions will not be taxable if:
- A US or Canadian resident has bought cryptocurrency but not sold it
- Has gifted cryptocurrencies to a friend or family member with the price being under $15,000
- Or if they have purchased any cryptocurrency with a Self-Directed IRA
Why is TurboTax needed?
Filling out tax returns can be a difficult job with any fiat currency, never mind digital assets. Just like TurboTax helps users to prepare their fiat currency taxes, the software makes it very easy for owners of cryptocurrency to tax their assets.
TurboTax helps customers to determine how to file their taxes from the previous year. Any customers who need additional help can tap into TurboTax’s database of certified public accountants or enrolled agents at Intuit.
With just a few simple steps needed, filling out tax returns has never been easier with the help of TurboTax. Once all initial prompts are filled out, users can jump straight to the ‘crypto’ section and select the crypto platform they used to prepare their data.
From this point, TurboTax can list all taxable transactions. Once these have all been imported, user’s can go ahead and fill out the other parts of their tax filing. It is as simple as that.
This simple and easy-to-use platform is great for beginners who have had no previous experience of filing cryptocurrency taxes. With the platform being linked to major exchanges, it ensures that no data is missed and all users are complying with all laws and regulations. This makes it a great tool for traders and investors who deal with large amounts of crypto.
Final thoughts
If you live in the US or Canada, when the time comes to fill out your tax returns for the year, using TurboTax is going to be your best option, as the platform’s simple interface allows you to upload your digital asset transactions from major cryptocurrency exchanges with ease. Cryptocurrency investments may seem daunting at first, but they no longer have to be with this useful tool.
For guides on cryptocurrencies, exchanges, and blockchain technology, click here. Make sure you take a look at all the latest crypto and blockchain news.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.