Filing your crypto taxes in the U.S. can feel confusing, especially when you’re using multiple wallets, exchanges, or DeFi platforms. Even with popular tools like TurboTax, many investors struggle to track cost basis, calculate gains accurately, or report staking rewards properly. Missing even a few transactions can lead to misreported income or inflated tax bills.
That’s where KoinX comes in. KoinX automatically compiles all your crypto transactions, calculates your capital gains and income, and exports a TurboTax-compatible report ready for upload. Whether you’re using TurboTax Premier or Self-Employment, KoinX helps you generate IRS-compliant reports that simplify every part of your crypto filing process.
How TurboTax Handles Cryptocurrency Reporting?
Filing crypto taxes through TurboTax may seem simple, but it involves multiple layers of information entry and categorization. TurboTax does support cryptocurrency transactions; however, its reporting features are limited compared to the complexity of crypto activity. Here’s a closer look at how TurboTax manages crypto reporting and where its limitations appear.
Supported Versions for Crypto Reporting
TurboTax allows cryptocurrency reporting only on its Premier and Self-Employment plans. These versions include features for investment income and capital gains reporting. If you’re using TurboTax Free or Deluxe, crypto options are unavailable. For accurate filing, most crypto investors need to upgrade to one of the supported versions.
Capital Gains and Losses Reporting
TurboTax lets users report capital gains and losses from crypto transactions under the “Wages & Income” and “Investments and Savings” section. This covers disposals such as selling, swapping, or spending crypto. However, TurboTax struggles to automatically track cost basis if your crypto was transferred between exchanges or wallets.
KoinX solves this limitation by auto-tracking your transfers, adjusting cost basis across platforms, and consolidating every transaction into a single accurate report. This helps prevent duplicate or missing entries that could distort your tax summary.
Reporting Crypto Income
Income from staking, mining, airdrops, or interest isn’t automatically handled by TurboTax. Users must manually enter such income in the “Miscellaneous Income” and then in the “Other Reportable Income” section. Determining the fair market value (FMV) in USD for each transaction can be tedious and time-consuming.
KoinX simplifies this by automatically calculating the FMV for every crypto income event, using accurate timestamps and pricing data. You can include this information in your TurboTax filing without manual calculations.
Step-By-Step: Reporting Crypto Taxes on TurboTax
Filing your crypto taxes becomes much easier when you combine TurboTax’s simplicity with KoinX’s automation. The process involves generating a TurboTax-compatible report in KoinX and then importing it into your TurboTax account. Follow these simple steps to ensure your crypto taxes are filed accurately and without stress.
Step 1: Create Your KoinX Account
Start by signing up on KoinX and connecting all your wallets, exchanges, and blockchains. KoinX supports 800+ integrations, including Coinbase, Binance, MetaMask, and Kraken. Once connected, your entire trading and income history is auto-synced, ensuring nothing gets missed during filing.
Also Read: How To Choose Right Crypto Tax Software
Step 2: Generate TurboTax-Compatible Reports
Once all your transactions are imported, KoinX automatically classifies them into taxable categories: capital gains, income, or losses. Head to your KoinX dashboard and export the TurboTax CSV report, which aligns with IRS Form 8949 and Schedule D. This report includes every gain or loss accurately calculated in USD and formatted for direct upload to TurboTax.
Step 3: Open TurboTax and Choose Your Plan
Log in to your TurboTax Online account and select the Premier or Self-Employment plan. These are the only versions that support cryptocurrency reporting. Once selected, navigate to your return and go to the income section to begin adding your crypto data.
Step 4: Go to ‘Wages & Income’
After finishing the “My Info” section, go to the sidebar and select the Federal tab and scroll down to the “Wages & Income” tab.. Follow the on-screen prompts and make sure to tick the boxes that relate to your cryptocurrency investments.
Step 5: Select ‘Investment and Savings Income’
Inside TurboTax, Under the “Investments and Savings” section, click Start/Edit to access the cryptocurrency reporting area. This is where you’ll upload the file generated from KoinX.
Step 6: Select ‘Enter a Different Way’ for Crypto Data
When TurboTax prompts you to import data from specific exchanges, select “Enter a different way.” This avoids duplication or incomplete cost basis data since your KoinX report already aggregates all transactions across platforms.
Step 7: Choose ‘Cryptocurrency’ as Investment Type
TurboTax will now ask what type of investment you’re uploading. Choose “Cryptocurrency” and click Continue. This ensures the system recognises your imported file correctly.
Step 8: Upload the TurboTax CSV File from KoinX
Select “Upload it from my computer” and choose the file exported from KoinX. When asked for the platform name, select “Other” and enter KoinX as the source. The file type should be marked as Gain/Loss or 1099-B to align with IRS reporting standards.
Step 9: Review and Confirm Imported Transactions
TurboTax will display all the imported transactions from your KoinX file. Review the list to confirm your sales, swaps, and disposals. Since KoinX includes only taxable transactions, you can simply review and proceed by clicking Continue.
Step 10: Complete Filing and Submit Return
After reviewing, TurboTax automatically populates Form 8949 and Schedule D with your KoinX data. You can now finalise your filing and submit your return electronically. Congratulations, your crypto taxes are now accurately reported using KoinX and TurboTax.
Reporting Crypto Income (Staking, Mining, or Airdrops)
Apart from capital gains, the IRS also treats crypto earned through staking, mining, airdrops, or interest as taxable income. While TurboTax doesn’t have a built-in feature to automatically detect this type of income, you can still report it manually by following these steps:
Also Read: Tax on Crypto Airdrops in the US
Step 1: Calculate Fair Market Value (FMV):
Every time you receive crypto from staking, mining, or airdrops, it’s taxed as income based on its fair market value in USD at the time of receipt. KoinX automatically calculates this FMV for each transaction, saving hours of manual price checks.
Step 2: Navigate to ‘Miscellaneous Income’ in TurboTax: I
In TurboTax, follow the given steps:
- Click on Federal Tab
- Select Wages & Income
- Choose Less Common Income
- Click Miscellaneous Income
- Now press Other Reportable Income.
This is where you’ll enter your crypto income details manually.
Step 3: Enter Total Crypto Income from KoinX:
Use the total value from your KoinX income report and input it under “Other Reportable Income.” You can label it as “Crypto income from staking/mining/airdrops – reported via KoinX.”
Step 4: Keep Detailed Records for the IRS:
KoinX keeps a full record of your income events, helping you stay audit-ready. If the IRS requests proof, your KoinX report provides exact timestamps, prices, and sources of each transaction.
By combining KoinX’s automated reporting with TurboTax’s income entry tools, you can ensure all your crypto-related income is properly declared and compliant with IRS rules.
Why Use KoinX As A Crypto Tax Software For TurboTax Reporting?
Tracking your crypto trades, swaps, airdrops, and staking rewards across multiple wallets and exchanges can be a nightmare during tax season. Transactions scattered across platforms often lead to missing data, incorrect cost basis, and reporting errors. KoinX brings everything under one window, automatically syncing your entire crypto history and generating TurboTax-ready tax reports so you can file your U.S. crypto taxes with confidence and accuracy.
Ensures Complete IRS Compliance With Form 8949–Ready Tax Reports
KoinX generates crypto tax reports fully compliant with IRS Form 8949 and Schedule D, listing all gains and losses in the correct format for TurboTax. Every transaction is timestamped and categorized so your filings always meet IRS accuracy standards.
Offers 800+ Wallet and Exchange Integrations for Seamless Data Syncing
Whether you trade on Coinbase, Binance, Kraken, or smaller DeFi platforms, KoinX connects with 800+ wallets, exchanges, and blockchains. This ensures that every transaction, from spot trades to NFT sales, is captured automatically without manual uploads or missed records.
Generates TurboTax-Compatible Files for Smooth and Quick Filing
KoinX exports your complete tax summary as a TurboTax-compatible CSV file, ready to upload. The file aligns perfectly with TurboTax’s investment income section, making crypto reporting as easy as traditional stock filing.
Automatically Classifies Transactions to Reduce Reporting Errors
Every transaction on KoinX is automatically labeled as buy, sell, transfer, or income, minimizing human error. This classification ensures you don’t double-count transfers or misreport staking rewards, leading to more accurate tax filings in TurboTax.
You Can Use It to Track Unrealized Gains and Tax-Loss Harvest in the USA
With KoinX, you can monitor your unrealized gains and potential tax-loss harvesting opportunities in real time. This helps you make smarter sales decisions and optimize your tax liability before year-end, directly improving your filing strategy in TurboTax.
Ready to simplify your next tax season? Join KoinX today and generate your TurboTax-compatible crypto tax report in minutes, accurate, compliant, and effortless.
When you receive cryptocurrency as payment for goods or services, it is treated as income. The tax authorities assess the value of the crypto-based on its fair market value at the time of receipt. This means you need to report the exact value of the cryptocurrency in Danish kroner (DKK) at the moment you receive it.
The amount you receive will be subject to taxation as income, not capital gains. You will pay tax on this income according to the applicable income tax rates, which may vary depending on your overall income.
Conclusion
Filing your crypto taxes doesn’t have to be complicated or time-consuming. While TurboTax offers a solid platform for U.S. taxpayers, it isn’t built to handle the complexities of multiple wallets, exchanges, and DeFi transactions on its own. That’s where KoinX bridges the gap by organizing your entire crypto activity, calculating accurate gains and income, and generating TurboTax-compatible reports ready for upload. Get started with KoinX today and make your TurboTax filing faster, easier, and stress-free.
Frequently Asked Questions
Can TurboTax Track Transfers Between Wallets and Exchanges?
No. TurboTax cannot automatically track cost basis or transfers across different wallets or exchanges. This often leads to inaccuracies when calculating total gains and losses. You’ll need to consolidate transaction data manually before importing it into TurboTax.
Does TurboTax Support NFT Transactions?
TurboTax supports NFTs only for specific blockchains like Ethereum. However, the platform may struggle to determine cost basis or calculate profits accurately for NFT trades, requiring users to manually input sales data or adjust valuations for precise reporting.
What Happens If I Have More Than 4,000 Crypto Transactions?
TurboTax Online currently supports up to 4,000 crypto transactions from a single account. If your crypto activity exceeds this limit, you’ll need to consolidate your data by asset type or file a summarized version online and then mail the complete Form 8949 to the IRS.
Can TurboTax Handle DeFi Transactions Or Airdrops?
TurboTax doesn’t automatically support DeFi or airdrop data. You’ll need to manually record such events, ensuring each transaction reflects its fair market value in USD at the time of receipt, as required by IRS income reporting rules.
