TurboTax is a very popular tax reporting tool in Canada. CryptoTaxCalculator supports both the desktop and online versions of the TurboTax app. Below are the instructions for reporting your cryptocurrency taxes using TurboTax.
1. Visit the TurboTax Canada Website
Create an account below the sign in option, or simply sign in if you already have an account
2. Choose your package
TurboTax features four different packages, however only two of these – Premier and Self Employed, include reporting for cryptocurrency.
Once you have chosen one of the two packages, click “Start for free” to get started.
3. Provide your details
You will be required to enter some personal information that helps with your filing status. When asked if you have any income from investments interest earned on investments, the sale of stocks or stock options, cryptocurrency/token transactions, choose “yes”.
Once you have proceeded and provided your details, you will then be taken to the TurboTax Income page.
4. Navigate to the “Capital Gains and Capital Gains Deduction Profile” section
You can do this by clicking on the “Income” Tab and then “Investments” on the left side once you have completed the “My info” section. Once again, you may be required to answer some questions about your income for the year.
This is where you will need to enter the information about the capital gains/losses that you have made during this tax year. To do this, you will need to download your Turbotax Online - Easy Import Summary from CTC by following the below instructions:
Navigate to the 'Reports' page on the Cryptotaxcalculator website.
Select the tax year that you would like to download your report for.
Press the 'View All' button next to Tax Reports.
Press the Software Integrations tab.
Click the PDF download button under TurboTax PDF.
5. How to report your capital gains using CTC’s Turbotax Online - Easy Import Summary
Once you have downloaded the TurboTax report, you are ready to fill in your information on TurboTax. TurboTax Canada only requires you to enter in a summary of your taxable events, making this step quite easy.
At the top of the Capital Gains and Capital Gains deductions Profile, you will need to select “Mutual funds/publicly traded shares/stocks/cryptocurrencies” from the dropdown menu.
Then you will just need to copy the values from the TurboTax Online - easy import summary and enter them into TurboTax under the corresponding category. The CryptoTaxCalculator report uses the same names for each category as you will see on TurboTax. See the below images as an example:
Note: The capital gains section in TurboTax Canada relates to all capital gains, so if you have additional capital gains outside your CryptoTaxCalculator (CTC) report, you'll need to combine these figures with the figures in your CTC crypto tax report. For this guide, we are assuming you're only reporting crypto investments in TurboTax Canada.
6. How to report your Income in TurboTax Canada**
On the navigation menu on the left hand side of TurboTax, click Income > Investments > Investment Profile
Check the second box labeled “Interest and Other Investment Income” and select “continue”. TurboTax may ask you to review your Capital Gains Summary. If you've already completed your crypto capital gains reporting, you can skip this section by selecting "continue” and then “Done”. If you have gains to report, follow the steps prior to this section.
Once on the "Interest and Other Investment Income - Summary" page, enter your crypto income in the first box labeled "Interest and other investment income". You can find information on the TurboTax Online Report Summary that we previously downloaded under the same label “Interest and other Investment Income”.
Copy this value over to TurboTax and enter it in under the column “Amount”.
For the “specify” field, this is where you can write a description of what this income was for or where it came from. An example would be “Crypto Income or Crypto Airdrops”, although it is worth discussing with an accountant if you are unsure.
Once these details have been added, similar to the above image, click “Done With Interest and Other Investment Income”, and you will have completed your crypto tax reporting using CryptoTaxCalculator reports in conjunction with TurboTax.