How to file your cryptocurrency & bitcoin taxes with CoinTracker and TurboTax

hi welcome to coin tracker we're going to today set up a tutorial on how to create a coin tracker account import your crypto currency transactions and complete your crypto currency tax filing to begin navigate to WWN tracker io and sign up for a new account right now I'm gonna create a test account with email and then click register in the background a test email account has been created and email has been sent to confirm the account once you've done that you can basically refresh the page and sign in with your new account credentials here you'll be presented with the three steps to create a cryptocurrency tax report first step is to add your exchanges and wallets followed by reviewing the transactions and then getting your tax forms so let's start by importing the exchanges wallets here you'll see 3 different options on how you can import your transactions the first is to connect your exchange accounts and there are a variety of options here you can see an extensive list the second option is to import a public address or an extended public key address for a local wallet such as a Bitcoin or theer you address the third option is to add transactions manually either individually one at a time or importing in both BS csv file so to get started let's connect a coin base account on we've presented with a prompt for read-only access to your coin base account so we'll continue and since i'm already logged into quite base its browser it just went right through otherwise you'd be prompted to log into your base account if you scroll down now you'll see that a coin base wallet has been created and it is updating meaning it's sinking in the background to add the new transactions while waiting for that to load will add one more wallet let's actually add a point based procow to the coin base pearl count again we're asking for view permissions only and there are step-by-step guide on how to create a read access API key grant coin tracker permission to view your coin based pro transactions so we're gonna follow these steps first by opening the API settings page once that loads you have the ability to create a new API key so we'll say it's the default profile we only want new permissions so let's check that box we have a passphrase now we're leading the IP whitelist blink and will enter a two-factor authentication code if you have two-factor authentication enabled for the account which I do make sure we're copying the passphrase here creating a new API key so this is done we'll go back to the original place coin tracker where it's asking for the password and copy that you have a new API secret which we've copied and then we'll see that there is a new view permission G which we can also copy paste and add account now wallah see that there's now into coinbase Patrol API key being connected with a new coin based pro-wallet here also you'll notice that the coin base account that we just previously added has also synced and you'll see the icons the different wallets the names of the wallets what transactions have synced and the current balances in each of these accounts currently it's it's all 0 in my account however you can see that there have been a bunch of transactions here previously during it into one of them you can simply click on one of the transactions and see what the previous transactions were on what dates and make sure that they're all here step 2 review transactions so now we're going to click on that and we're going to see that all of our transactions is that have imported you can scroll to different pages and see all the different transactions here we want to review and make sure all the transactions have been imported including buys sells trades transfers deposits withdrawals you want to make sure that they're all there that there are no issues with any of the imports that you've done this process for all of the exchanges you have and all of the local wallets hardly wallets for wallets that are off exchange 100% of their transactions will be need added need to be added to coin tracker in order to get an accurate tax report once you've done that we'll go to the third step get your tax forms here you'll see that you can get a summary of your 2018 tax year and you also have the ability to filter to other tax years if you want to go ahead to next year or to previous years we'll see a summary of what exchanges we've connected in which wallets we'll see a summary of how many transactions we have how many sent and received transactions there were you'll also see which country you've selected which is important for making sure you have the right tax rules applying to your account what your base currency is you can change it to another base currency or a different cryptocurrency which cost basis method you want which is set by default to first-in first-out but you can choose other options if you're an advanced user and what kind of crawlspaces tracking you want by default set to universal but again you can change that to other settings for advanced users so the next thing to do will be to get a tax plan so that we can unlock all of our tax forms so we'll choose a tax plan here there are multiple options again we're looking at the 2018 tax here here right now hobbyist basic trader active trader pro trader and the difference is the number of transactions that each of them supports so for my account we saw that there were over a hundred transactions so that's why we're getting a red warning here that 169 transactions won't be covered by this plan so we'll want to go ahead at the basic trader plan so we'll go ahead and get started here we'll be presented with a striped payment flow where you can complete the payment so I'm going to go ahead and authorize this on my account and while I'm going ahead and doing that you can go ahead and make sure that you're making the payment that you need to get the tax plan that you want one common question that comes up is can we regenerate the tax forms multiple times and I decide to make changes or if something else comes up and I need to add a transaction or rerun the report without paying again and the answer is yes you can rerun the report as many times as you need for a particular account for that same tax year so I've gone ahead and added this tax plan to my account I'm going to refresh the page and you'll now see that a basic trader plan has come in so all of these tax reports are now unlocked and you'll see a summary of my total capital gains here short term and long term proceeds cost basis capital gains so the next step here is to get your tax report and there are many different ways that you're filing your taxes one approach is to just get the IRS form 8949 which in the United States is your cryptocurrency capital gains tax form that can be used to directly file yourself if you're using a CPA or accountant tax advisor or tax lawyer to file the two files you'll want to present them with it at a minimum are the IRS form 8949 that we just talked about which is a PDF and your capital gates CSV which is the exact same information but in a spreadsheet format you may also want to give them your transaction history CSV which gives you a summary of every single transaction you've covered and exactly what the cost basis was for each of those transactions if you're filing with some online tax software such as TurboTax our Tax Act there are specific formats for those files so here we'll talk about how you can use TurboTax to file there are extensive instructions here if you click on the instructions button but for simplicity sake we will go through the TurboTax online filing system now note this only works with up to a hundred entries so if you have more than a hundred taxable events in the tax year this will not work with TurboTax online and you'll have to use alternative method which is explained in the instructions and also note that the number of transactions you have in a tax year is not the same as the number of taxable entries there's also an explanation of that in our Help Center so we're going to download this file once that's downloaded we'll have the option to continue forward by now visiting TurboTax saved and here we are presented from this page so in the background live confirming the account the email so that we know that this account is fact connected to our own email address that's been done right now you'll see all these different options for different things that you can select you can pick which other ones are relevant for you for the sake of this demonstration we're going to pick the premier tier here because you need at least the premier tier or the self-employed tier in order to file is clipped out currency so start for free information date now here how did you file your taxes last year you can pick whatever applies to you and we feel good we're using point tracker and this is going to be super easy continuing forward select the relevant boxes for you will say that we were single that everything else is pretty straightforward and once you get to the idea of your financial picture you'll see an option for I traded or sold cryptocurrency on the bottom right here so we'll select that box and then we will continue the last site information summer is here and keep going we'll continue through this skip through this and then we'll talk so basically take you to your my info section for now we're going to skip towards the federal section of income we'll just read it cooked over NC sections so we can start it there and we'll continue now we'll get the cryptocurrency section where we want to start did you sell or trade after cutscene 2018 the answer is yes we did so it looks like yes and you'll have the option of connecting with them and services this is coin tractor so we'll select that and continue we'll have the opportunity knob to add our crypto currency transactions so here term tax is saying that it actually is supporting up to two hundred and fifty transactions now so we'll browse for desktop and pick the file that we just created and upload that it's accepted it's great if you get any warnings here validation errors or other warnings please check the turbo tax instructions and Help Center which extensively outline everything you can do every scenario we'll continue once we've done that you'll see a summary of all the different transactions here but the asset name was once purchase cost basis date sold proceeds gain loss will select all of them because these are all taxable events that have already been detected by claim tracker so once they're all selected can you verify them they're right you'll see its summary now of all those transactions you select all of them so it should be all the same ones and then we'll continue here it'll give you a date line by line summary of the aggregate number of transactions and our taxable events total cost basis and proceeds for each of those and you might see a different line for short-term and long-term before you'll be able to press done and then that's it you see your cryptocurrency finished here you click wrap-up income and you're done wonderful pie yourself on the back press Continue and you're now done filing your cryptocurrency taxes with coin tracker if you have any questions please let us know on support otherwise give us a like on Twitter and tell your friends thank you

4 thoughts on “How to file your cryptocurrency & bitcoin taxes with CoinTracker and TurboTax”

  1. It's a great service except I got stuck on importing Cryptopia.
    I pasted in my API key and API Secret and over and over again I get "Failed to add account. Please check the values below." I was following instructions perfectly. Very frustrating! Any ideas? Have you experienced this?

  2. Hi, i didn't file my tax on crypto last 2017, is there any way that i can still file the 2017 even is already 2019? thanks for your help in advace.

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