In this guide, we will explain how to import your crypto capital gains and losses and report crypto income and deductions. Please note that the content in this guide provides general instructions for using Crypto Tax Calculator reports with your TaxAct account and may not account for your specific circumstances. If you have any doubts, we recommend consulting with your accountant.
Step 1: Download the TaxAct report CSV file
1. Log in to your Crypto Tax Calculator (CTC) account and navigate to the Reports page.
2. Scroll down and find 'Custom' in the 'Tax Reports' section.
3. Find 'TaxAct - Capital Gains Report' in the pop-up window and download the CSV file.
Step 2: Import it into your TaxAct account
1. Log in to your TaxAct account and follow the steps to fill out your personal information and answer the questions according to your personal circumstances.
2. Once you come across the 'Tell us any additional income you had' section, select 'Less common income'.
3. Check 'I have different income not listed'.
4. In this section, check all options applied to your situation.
5. Follow the steps in TaxAct until you see 'Cryptocurrency' section. The page outlines the options you checked in the previous steps.
6. When handling 'Gain or loss on the sale of cryptocurrency', you will need to import your TaxAct report CSV file downloaded from CTC in Step 1. Select 'CSV import'.
7. Follow the prompts to import the CTC TaxAct report CSV file. Double-check if the imported format matches the TaxAct format.
8. Once confirmed that the columns match, follow the prompts to finish importing your report. You can check your imported capital gain and loss results on the upcoming Cryptocurrency - Summary page and edit them if needed.
Step 3: Handling crypto income
1. Continuing with the process, you can report your other crypto income in the 'Less common income source' section.
2. Go to the Reports page on your CTC account, select 'Custom', and download your Income report PDF file.
3. Enter the figures on your CTC Income Report in the Other Income section accordingly. Alternatively, you can just enter the total income figure as 'Total crypto income'.
Step 4: Handling crypto deductions
Always consult with your accountants or check with the IRS if you are unsure what can be deducted.
Margin fee deduction
1. Continuing with the process, you can report your other crypto income in the 'Deductions' section.
2. Select 'Itemized deductions' -> 'Investment interest'
3. Go to the Reports page on your CTC account, select 'Custom', and download your Derivative Trading Report PDF file.
4. Enter the Margin Fee figure on your CTC Derivative Trading Report in the 'Investment interest expense from other sources' field.
Tax preparation fee deduction
If you run a business, you might be eligible to deduct your tax preparation fee (IRS P529). You can deduct it in the 'Business income or loss' section.
Please note that the content in this guide provides general instructions for using Crypto Tax Calculator reports with your TaxAct account and may not account for your specific circumstances. If you have any doubts, we recommend consulting with your accountant.