We sent you 4 files. Here's what each one is, what it looks like, and how you'll use it. The Excel workbook is the most important β it's where every number you'll type into TurboTax comes from.
π Heads-up about the screenshots in this guide: Every dollar amount you see in our mockups (like $14,299.45, $28,129.72, $1,864.83) is a SAMPLE from a fake client β not your numbers. They're shown so you know what the screen looks like. Always pull your real numbers from your own Excel workbook and PDF report.
π
Excel Workbook START HERE
2025 Tax Report - YourName.xlsx
The numbers. Every figure you'll type into TurboTax comes from this file. Has 5 tabs covering buys, sells, the Tax Year breakdown, Form 8949 summary, and Schedule 1 income.
5 tabs at the bottom:
Buys
Sells
Tax Year 2025
Form 8949
Schedule 1
π
Tax Analysis PDF
YourName_Tax_Analysis_2025_v3.pdf
The story behind the numbers. Plain-English summary: net gain/loss, top performers/losers, crypto income breakdown, tax planning notes, and any special items (theft loss, etc.). Read this first to understand your results.
SAMPLE
Short-Term Net($132.02)
Long-Term Net$14,431.47
Total Net Capital Gain$14,299.45
π
Schedule D & Form 8949 PDF
YourName_2025_8949_v3.pdf
The detail you mail. Schedule D summary on page 1 + Form 8949 detail pages organized by box (H, K, I, L). Attach this to your e-filed return β or mail it with Form 8453 if you're using Sales Section Totals.
Inside:
Β· Schedule D summary (page 1)
Β· Box H β short-term, basis not reported
Β· Box K β long-term, basis not reported
Β· Box I / L β DeFi (no 1099-DA)
π°
Schedule 1 Income PDF
YourName_2025_Sch1_v3.pdf
Your "other income." Staking rewards, airdrops, fee rebates β anything that isn't a capital gain. Goes on Schedule 1 line 8z (see Part E). If your total is $0, you can ignore this file.
SAMPLE
Staking rewards$4,752.91
Airdrops$1,295.06
Total Crypto Income$6,047.97
β‘ You may also receive 2 more files (only if applicable to you)
Form 4952 PDF β Investment Interest Expense. Only included if you did margin trading (BloFin, Bybit, etc.). See the Margin Trading section. CPA Filing Instructions β only included if you requested a CPA-ready packet. If you're filing yourself, this guide replaces it.
π How to read the Excel workbook (the most important file)
The Excel workbook has a 1 / 2 / 3 outline in the top-left corner. Click these buttons to expand or collapse the level of detail you want to see β this is the trick that makes our file 100x easier to read.
SAMPLE NUMBERS
1
2
3
Asset
Quantity
Proceeds
Cost Basis
βΈ
BTC Total
2.45
$54,019.25
$17,250.32
βΈ
ETH Total
11.07
$20,630.02
$12,290.97
βΈ
SOL Total
389.74
$28,345.23
$20,481.29
βΈ
ADA Total
12,847.30
$14,952.18
$8,738.99
GRAND TOTAL
β
$427,123.55
$56,761.83
Buys
Sells
Tax Year 2025
Form 8949 - Crypto Txns
Form 1040 Schedule 1
The 3 buttons in the top-left explained:
- Click "1" β shows only the Grand Total row. Use this to confirm your overall numbers match the Tax Analysis PDF.
- Click "2" β shows Grand Total + per-asset subtotals (BTC Total, ETH Total, SOL Totalβ¦). Use this when you're checking how each coin contributed.
- Click "3" β expands every individual transaction. Use this only if you need to look up a specific trade or audit a single line.
Most clients live at level 2 β it's the sweet spot between detail and overwhelm.
π‘ Excel workbook vs Tax Analysis PDF β which to use when
- Excel workbook = the numbers you type into TurboTax. Open the Form 8949 - Crypto Txns tab for everything you'll enter in Part C. Open the Form 1040 Schedule 1 tab for staking/airdrop totals.
- Tax Analysis PDF = read this first. Tells you what your numbers mean, flags anything special, and gives you the context to answer TurboTax's follow-up questions confidently.
- Schedule D & Form 8949 PDF = mail this to the IRS with Form 8453 (or attach in TurboTax's Documents tab).
Form 1099-DA Is Now Live
Starting with Tax Year 2025, centralized exchanges (Coinbase, Kraken, Binance.US, PayPal, Crypto.com, etc.) are required to issue Form 1099-DA reporting gross proceeds to both you and the IRS. Cost basis is not required for 2025 though β so many 1099-DA forms will show proceeds but leave basis blank or $0.
When comparing your 1099-DA against our report: the proceeds in our report should be equal to or greater than what appears on your 1099-DA. This is expected β our report captures your complete transaction history, including activity your exchange may not have on record. Always use our figures.
New Form 8949 Boxes for Digital Assets
The IRS added new checkboxes specifically for digital assets in 2025. Use these β not the old Box C or Box F:
G
Short-term
1099-DA received, basis reported to IRS
1099-DA received, basis reported to IRS
J
Long-term
1099-DA received, basis reported to IRS
1099-DA received, basis reported to IRS
H
Short-term
1099-DA received, basis NOT reported
1099-DA received, basis NOT reported
K
Long-term
1099-DA received, basis NOT reported
1099-DA received, basis NOT reported
I
Short-term
No 1099-DA (DeFi, on-chain, wallets)
No 1099-DA (DeFi, on-chain, wallets)
L
Long-term
No 1099-DA (DeFi, on-chain, wallets)
No 1099-DA (DeFi, on-chain, wallets)
Your Form 8949 summary sheet labels the correct box for each group. Match that label to the TurboTax dropdown.
β‘ Important β TurboTax's dropdown does NOT say "Box H" or "Box K"
In the "Applicable Form 8949 checkbox" dropdown, TurboTax uses long descriptions instead of letter codes. Use this translation:
| Our label | What you'll actually see in the TurboTax dropdown |
|---|---|
| Box G | "Short-term transaction, basis reported to IRS (covered)" |
| Box H | "Short-term transaction, basis not reported to IRS (non-covered)" β most Coinbase / Robinhood / Crypto.com trades |
| Box I | "Short-term β did not receive 1099-B" β DeFi / on-chain / margin trading |
| Box J | "Long-term transaction, basis reported to IRS (covered)" |
| Box K | "Long-term transaction, basis not reported to IRS (non-covered)" β most 1099-DA long-term trades |
| Box L | "Long-term β did not receive 1099-B" β long-term DeFi / on-chain |
Quick rule of thumb: If the 1099-DA showed proceeds but left cost basis blank (the normal 2025 situation), you want "basis not reported" β that's Box H (short-term) or Box K (long-term). Do NOT pick "basis reported" β that's for traditional brokerages where the cost basis has always been tracked.
Answer 'Yes' on Form 1040
Form 1040 asks: "At any time during 2025, did you receive, sell, send, exchange or otherwise acquire any financial interest in any digital asset?" Answer Yes even if you only bought crypto and never sold anything.
The Form 1040 digital asset question
Digital Assets
At any time during 2025, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?
Yes
β pick this
No
Answer Yes if you did any of the following in 2025: bought crypto, sold crypto, swapped between coins, received staking/airdrops, got paid in crypto, or received a gift. Even if you only bought and held β still Yes.
This is the question on Form 1040 itself β TurboTax asks you here so it can fill that box in for you.
DeFi Brokers Are Exempt from 1099-DA
Congress repealed the requirement for decentralized exchanges and non-custodial wallets to file 1099-DA. DeFi and on-chain transactions will not appear on any 1099-DA β but they are still fully taxable. They are included in our report in the Non 1099-DA group.
β‘ Special Situations β CPA Review Required Before Filing
If your PDF tax analysis mentions a theft loss, casualty loss, or any IRC Β§165 item, consult a qualified tax professional before filing. These are handled outside Form 8949 and require a CPA determination. Your PDF analysis will tell you if this applies to you and what to do.
π Before You Sit Down β Have These 4 Things Open
Your BCTP report PDFThe "TY2025_Tax_Analysis.pdf" we sent you. Used for context, theft loss notes, and reference figures.
Your Excel workbookThe .xlsx with the "Form 8949" and "Schedule 1" tabs. This is where your numbers come from.
Any 1099-DA PDFs from your exchangesFrom Coinbase, Robinhood, Crypto.com, etc. You'll attach (not import) these.
Your TurboTax loginPremium or Deluxe β Free Edition won't work for crypto.
Tip: open the Excel workbook on a second screen or in a second browser tab so you can copy numbers directly into TurboTax without flipping windows.
You need TurboTax Premium or Deluxe (Online). Free Edition does not support Form 8949 or Schedule D.
Phase 1 β Answer the Crypto Questions
1
Sign in at
turbotax.intuit.com and open or continue your 2025 return.2
Go to Federal β Wages & Income.
3
Scroll to Investments & Savings and click Start / Revisit next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B, 1099-DA).
4
When asked "Did you have investment income in 2025?" β select Yes.
5
When asked "Did you have crypto income or losses?" β select Yes.
6
Answer follow-up questions (wallet transfers, NFTs, staking rewards, DeFi/DAO participation) based on your actual 2025 activity. Check your PDF tax analysis if unsure.
Step 6 β The follow-up questions
Tell us about your 2025 crypto activity
Check every box that applies. Be honest β these affect which screens you see next.
I sold or swapped cryptocurrency β usually yes
I transferred crypto between my own wallets or accounts β if applicable
I received staking rewards or airdrops β check Schedule 1 tab
I bought, sold, or traded NFTs β if applicable
I participated in DeFi (Uniswap, Pendle, lending, etc.) β if applicable
Don't sweat these β they only change which screens TurboTax shows next. Your actual numbers come from our report regardless.
7
Click Continue. When asked how to add investments, choose "Enter a different way" β then "Type it in myself." Do not choose "Connect" β this imports raw unreconciled exchange data.
What you'll see β TurboTax
How would you like to add your investments?
Connect to my exchange
(Coinbase, Robinhood, Crypto.com, etc.)
Upload a CSV or 1099 PDF
β imports with $0 cost basis
Enter a different way
Then pick "Type it in myself" on the next screen
β click this
Continue
Illustrative mockup. Exact wording varies slightly by TurboTax version.
Phase 2 β Enter Your Exchange Totals (Coinbase, Robinhood, Crypto.com, etc.)
We use the Sales Section Totals method β one summary line per group from your Form 8949 summary sheet. This is IRS-approved. The full transaction detail is mailed separately (see Part J).
β If TurboTax offers to "import transactions" from your 1099-DA file β say NO
When TurboTax detects a 1099-DA PDF, it will often offer to read the transactions from it. Do not do this. It brings everything in with $0 cost basis and creates a massive fake gain. Always decline the import and enter the Sales Section Totals by hand using our numbers. (You can still attach the 1099-DA PDF separately in the Documents tab β that's just storage.)
8
Select Digital Assets from the investment type list. Tip: do NOT pick "NFT" even if you traded NFTs β "Regular digital asset" prevents TurboTax from taxing them as collectibles at 28%.
9
"Did you get a 1099-DA?"
• Groups labeled with an exchange name (Coinbase, Robinhood, Crypto.com, Kraken, etc.): select Yes.
• Groups labeled "Non 1099-DA" (DeFi, on-chain, margin): select No.
Your Form 8949 summary sheet identifies each group clearly.
• Groups labeled with an exchange name (Coinbase, Robinhood, Crypto.com, Kraken, etc.): select Yes.
• Groups labeled "Non 1099-DA" (DeFi, on-chain, margin): select No.
Your Form 8949 summary sheet identifies each group clearly.
Step 9 β "Did you get a 1099-DA for this sale?"
Did you get a 1099-DA for these sales?
A 1099-DA reports digital asset sales from centralized exchanges like Coinbase, Robinhood, Kraken, Crypto.com, and PayPal.
Yes
Pick this for groups from Coinbase, Robinhood, Crypto.com, Kraken, PayPal, etc.
No
Pick this for groups labeled "Non 1099-DA" β DeFi, Uniswap, Pendle, wallet activity, margin trading.
You'll enter each group one at a time β some will be Yes, some No.
10
If asked "Did you buy every investment listed on your 1099?" select Yes. (Unless something was inherited or gifted β which is rare.)
11
Choose "Sales section totals" when asked how to enter your transactions. If TurboTax asks whether you have "more than 3 transactions," say Yes.
Step 11 β How do you want to enter your sales?
How do you want to enter your sales?
You have more than 3 transactions, so you have a few choices:
Enter each sale one by one (50+ transactions would take hours)
Upload a CSV file (not available for crypto in 2025)
Sales section totals
β pick this
With Sales Section Totals, you enter one summary line per group (short-term Box H, long-term Box K, etc.) β IRS approved. The full transaction list is submitted separately.
This is how we tell every client to file β the numbers on your Form 8949 summary sheet are built specifically for this method.
12
From the "Applicable Form 8949 checkbox" dropdown, pick the option that matches your group. Most 1099-DA trades will be "Short-term β basis not reported to IRS (non-covered)" (= Box H) or the long-term version (= Box K). See the translation table in Part B if you're unsure.
Step 12 β Box dropdown (most common choice)
Applicable Form 8949 checkbox
Short-term transaction, basis not reported to IRS (non-covered)
Short-term transaction, basis reported to IRS (covered) β Box G
Short-term transaction, basis not reported to IRS (non-covered) β Box H β pick this for Coinbase / Robinhood / Crypto.com
Short-term β did not receive 1099-B β Box I (DeFi, on-chain, margin)
Long-term transaction, basis reported to IRS (covered) β Box J
Long-term transaction, basis not reported to IRS (non-covered) β Box K (long-term 1099-DA)
Long-term β did not receive 1099-B β Box L
Your Form 8949 summary sheet tells you which box to pick for each group.
13
For Description, type the exchange name (e.g., "Coinbase" or "Robinhood").
14
Date acquired: click the dropdown β pick "Something other than a date" β type Various. Date sold: type 12-31-2025. (TurboTax 2025 added dropdowns here and won't accept free-form "various" anymore β this is the workaround.)
Step 14 β The "Various" date workaround
Date acquired
Something other than a date
MM/DD/YYYY date picker
Something other than a date β pick this
Inherited
(then type in this box)
Various
Date sold
12-31-2025
For amendments, use 12-31 of whichever tax year you're amending (e.g., 12-31-2023 for a 2023 amendment).
15
Enter the Total Proceeds and Total Cost or Other Basis from your Form 8949 summary sheet for this group.
SAMPLE
Step 15 β Enter proceeds and cost basis
Now enter the totals for this group
Copy these from the row on your Form 8949 summary sheet. Enter dollars and cents.
Total Proceeds (what you sold for)
$ 28,129.72
Total Cost or Other Basis (what you paid)
$ 30,786.30
Gain/Loss: β$2,656.58 (TurboTax calculates this from your entries β sanity-check it against your workbook)
Continue
Numbers shown are an example. Always use the figures from your own Form 8949 summary sheet.
16
On the next screen ("Do any of these apply?" β holding period, sales expenses, etc.), select "None of these apply". Our numbers already have fees netted in β adding them here double-counts.
Step 16 β "Do any of these apply?"
Let us know if any of these less common situations apply
I paid sales expenses that are already included in the sales proceeds
This was a wash sale
I received this investment as a gift or inheritance
Some other less common situation
None of these apply
β pick this
Continue
Our proceeds already have fees netted in β don't enter them again here or they'll double-count.
17
For short-term groups, answer "No" to "Did you acquire this more than a year before selling?" For long-term groups, answer Yes. Confirm the box code looks right on the summary line.
18
Click "Add another sale" and repeat Steps 12β17 for each remaining group (short-term, long-term, each exchange, margin trading, etc.) until every row from your Form 8949 summary is entered.
19
Review the summary β the Net Gain/Loss should match the Schedule D totals in your Excel workbook.
SAMPLE
Step 19 β Review your totals
Investment sales summary
Make sure each row matches a row on your Form 8949 summary sheet.
Cross-check: this number should match your workbook's Schedule D Total. If it doesn't match within a dollar or two, stop and review before continuing β don't file with mismatched numbers.
Example figures. Yours will be different.
Phase 3 β If Your 1099-DA Numbers Don't Match
π‘ How to handle 1099-DA discrepancies
- Check the box: "The cost basis is incorrect or missing on my 1099-DA."
- Enter the corrected cost basis from your Form 8949 summary sheet.
- If our proceeds are higher than your 1099-DA, that's normal β our report captures your full history (including USDC swaps, wallet-to-exchange transfers, and slippage that exchanges often miss). Our figures are correct.
Phase 4 β Attaching the Report & What About "Upload My 1099-DA"?
π‘ Two different uploads β know which is which
TurboTax may prompt you twice for uploads. They are different things:
- β SAFE β Documents tab upload. In TurboTax Online, go to Documents β Add tax docs. You can drop our full PDF packet here as an attachment. This is just storage β it won't touch your numbers. If this works, it may replace the need to mail Form 8453 (see Part J). Try this first.
- β SAFE β "The IRS requires a copy of your 1099-DA" screen. If TurboTax specifically asks you to attach the 1099-DA PDF, go ahead β it's just attaching the document, not importing numbers from it.
- β DANGEROUS β "Import transactions from 1099-DA." If TurboTax offers to read transactions from the 1099-DA file, decline. It brings everything in at $0 cost basis and can inflate your tax bill by tens of thousands of dollars.
If TurboTax says "The IRS requires a copy of your 1099-DA"
π Upload your 1099-DA
The IRS requires a copy of your 1099-DA because you reported corrected figures on your sales summary. Upload the PDF here.
π
Drag & drop your 1099-DA PDF here
or click to browse
β
This upload is safe. It just attaches the PDF as a document β TurboTax does NOT pull transactions from it. Go ahead and upload.
Different from the dangerous "Import transactions" prompt. This one is just file attachment.
β
SAFE β Documents tab
Federal
State
Review
Documents
File
Your tax documents
π Add tax docs
Upload files from this device
Drop your full BCTP PDF packet here. Just storage β doesn't change any numbers.
Try this first before mailing.
β DANGEROUS β Import
We found a 1099-DA from Coinbase
Want us to pull the transactions in for you?
Yes, import all transactions
β brings them in at $0 cost basis
No, I'll enter totals myself
β pick this
Saying YES here cost one client a phantom $54K tax bill.
If your report has a Margin Trading Reconciliation page (BloFin, BitMEX, Bybit derivatives, etc.), margin trades are split into two separate entries in TurboTax. Doing only one will mis-state your return.
Part 1 β Gain or Loss β Form 8949 (Box I, short-term)
1
Add another sale inside the same Investments & Savings flow as Part C.
2
Investment type: Regular digital asset. Description: "Cryptocurrency β Margin Trading."
3
Date acquired: Various (via "Something other than a date" dropdown). Date sold: 12-31-2025.
4
Proceeds and Cost Basis: take the Net P&L columns from the Margin Trading Reconciliation page of your report.
5
Box: Short-term β did not receive 1099-B (= Box I).
6
Sales expenses screen: select "None of these apply." Do NOT enter the fees here β the fees go on Form 4952 separately (Part 2 below). Entering them in both places double-counts and understates your income.
Part 2 β Margin Trading Fees β Form 4952 (Investment Interest Expense)
1
Go to Federal β Deductions & Credits.
2
Scroll to Retirement and Investments β click Show more.
3
Click Start next to Investment Interest Expenses.
How to find Investment Interest Expenses
Wages & Income
Deductions & Credits
Health Insurance
Other Tax Situations
Retirement and Investments
βΈ Traditional and Roth IRA Contributions
βΈ Investment Interest Expenses Start
βΈ Undistributed Capital Gains
If you don't see the list, click "Show more" under "Retirement and Investments" first.
4
Answer Yes to "Do you have 2025 investment interest expenses?"
5
Description: "Margin trading fees." Amount: the net fee total shown on your Margin Trading Reconciliation page.
SAMPLE
Step 5 β Enter your margin fees
Tell us about your investment interest expense
Description
Margin trading fees
Amount
$ 1,864.83
Continue
π‘ Heads-up: TurboTax may tell you this doesn't reduce your tax this year because you don't have passive investment income. That's fine β it carries forward to next year and every year after until you use it up.
Example amount. Use the net fee total from your own Margin Trading Reconciliation page.
6
Skip the "other investment income" and "annuity/rental" screens β those don't apply.
π‘ What this actually does for your taxes
Investment interest expense flows to Form 4952 as an itemized deduction. If you don't have offsetting investment income (interest, dividends, passive investment income) this year, it carries forward to future years β it'll sit there until you can use it. It's still worth reporting: once you have passive investment income down the road, these fees reduce that income dollar-for-dollar.
β‘ Why not just net the fees against the gain/loss?
Because the IRS classifies derivative/margin fees as interest expense, not trading fees. Our report calculates them separately for this reason. Netting them into proceeds would mis-categorize them on the return.
β Desktop Users β Known Limitation in 2025
TurboTax Desktop 2025 removed CSV import for crypto and does not natively support attaching a Form 8949 PDF. This is widely reported. Your practical options:
- Option 1 (Recommended): Enter crypto in TurboTax Online (free to start), then pull it into Desktop via File β Import from TurboTax Online.
- Option 2: Manually enter the Sales Section Totals in Desktop β go to Federal β Wages & Income β Investments & Savings and follow Part C steps.
- Option 3: Enter summary totals, e-file, and mail the full transaction detail with Form 8453 (see Part H).
Need a TXF file for Desktop import? Email us at info@cryptotaxprep.io and we can generate one for your account.
If your Excel workbook includes a "Form 1040 Schedule 1" tab with a non-zero Grand Total, you received crypto ordinary income in 2025 β such as staking rewards, liquidity pool yields, airdrops, mining, or interest. This goes on Schedule 1, Line 8z β not on Form 8949.
1
In TurboTax, go to Federal β Wages & Income β Less Common Income.
2
Select Miscellaneous Income, 1099-A, 1099-C.
3
Choose Other reportable income at the bottom of the list.
4
Enter a description (e.g., "2025 Crypto Staking / DeFi Income") and the Grand Total from the Schedule 1 tab in your Excel workbook.
SAMPLE
Step 4 β Other Reportable Income entry
Other Taxable Income
Do not enter income reported on Form 1099-MISC, 1099-NEC, or W-2 here.
Description
2025 Crypto Staking & DeFi Income
Amount
$ 1,806.22
Continue
π‘ Use the Grand Total from your Schedule 1 tab. If you'd rather break it out (e.g., "Staking β $1,200" and "Airdrops β $606"), you can β just add separate entries. The total has to match either way.
Example amount. Use the Grand Total from your own Schedule 1 tab.
5
Optional: break it into separate line items by income type (staking, airdrops, etc.) if you prefer. Each line should match the subtotals shown in your Schedule 1 tab.
How to find Other Reportable Income
Wages & Income
Deductions & Credits
Other Tax Situations
Scroll way down the list:
βΈ Interest & Dividends
βΈ Investments & Savings
βΈ Retirement Plans
βΈ Less Common Income click here
Then inside:
Prizes, Awards, Gambling Winnings
βΈ Miscellaneous Income, 1099-A, 1099-C then this
Then at the bottom:
βΈ Other reportable income finally this
Don't use "Self-employment income" by mistake β that triggers self-employment tax on your staking rewards.
π Mining as a business?
If you mined regularly with a profit motive (not a hobby), mining income belongs on Schedule C and is subject to self-employment tax. Contact us if you're unsure which treatment applies.
π Just here by accident?
If you haven't filed your 2025 return yet, you don't need this section. β Go back to Part C β that's the main filing flow for a brand-new 2025 return.
If you filed your 2025 return before receiving your report, or with incomplete crypto data, you need to file Form 1040-X. TurboTax supports online amendments for paid versions.
Before You Start
- Wait until the IRS has fully processed your original return β typically 2β3 weeks after e-file acceptance.
- If you expect a refund, wait until you receive it before amending.
- Form 1040-X for 2025 became available in TurboTax in early March 2026. If you see "not available yet," wait a few days.
- Deadline to amend and claim a refund: April 15, 2029 for your 2025 return.
Steps to Amend in TurboTax Online
1
Sign in to TurboTax and open your filed 2025 return.
2
Scroll to the bottom and click "Amend (change) return" β Amend using TurboTax Online.
Finding the amendment button
Your 2025 tax return
β Filed on March 12, 2026 β Accepted
π₯ Download your return (PDF)
π¨ Print your return
Check e-file status
Scroll down to find:
βοΈ Amend (change) return click here
Wait 2β3 weeks after your original return is accepted before starting the amendment.
3
When asked why you're amending, select: "I need to add or change information about my income, deductions, or credits."
4
Go to Federal β Wages & Income β Investments & Savings.
5
No crypto entered before: Follow Part C Steps 3β17 to add it now.
6
Crypto entered with wrong figures: Click Edit/Update and correct the proceeds, cost basis, and box codes to match our report.
7
TurboTax fills Form 1040-X automatically showing original amounts, change, and corrected amounts. Review carefully.
8
If additional tax is owed, pay promptly to minimize interest accrual.
9
Click "File Amendment." The 2025 1040-X can be e-filed directly in TurboTax.
10
Track status at
irs.gov/filing/wheres-my-amended-return β typically 8β20 weeks to process.πΊ Don't forget your state
If your state taxes capital gains, amend your state return too. TurboTax will prompt you after the federal amendment. State deadlines may differ.
π Only filing 2025? Skip this section.
This section is only for fixing older tax years (2021β2024). If you're filing a brand-new 2025 return, β go to Part C.
If you had cryptocurrency activity in 2021, 2022, 2023, or 2024 that was never reported β or was reported incorrectly β you should file amended returns. As exchanges now share data directly with the IRS via 1099-DA, prior unreported years carry increasing audit risk. Proactively amending puts you in a much better position.
What Years Are Still Open?
β Tax Year 2021 β Refund Window Closed
The 3-year window to claim a refund for Tax Year 2021 (originally due April 18, 2022) closed on April 18, 2025. You can no longer receive a refund for that year. However, you can and should still file an amended return to correct the record β this reduces audit risk and ensures your cost basis carries forward correctly into future years. Contact us if this applies to you.
β 2021 β Refund window closed; record correction only
β
2022 β Open (refund deadline: April 15, 2026)
β
2023 β Open (refund deadline: April 15, 2027)
β
2024 β Open (refund deadline: April 15, 2028)
π 2025 β Current year (see Part F)
β 2022 Deadline is April 15, 2026 β Act Now
The 3-year window to claim a refund for Tax Year 2022 closes on April 15, 2026. After that date you can still correct the record by filing, but you cannot receive any refund owed for that year. If 2022 applies to you, contact us immediately at info@cryptotaxprep.io.
| Tax Year | Originally Due | Refund Claim Deadline | Status |
|---|---|---|---|
| 2021 | April 18, 2022 | April 18, 2025 (passed) | β Record correction only |
| 2022 | April 18, 2023 | April 15, 2026 | β‘ Urgent β closing soon |
| 2023 | April 15, 2024 | April 15, 2027 | β Open |
| 2024 | April 15, 2025 | April 15, 2028 | β Open |
| 2025 | April 15, 2026 | April 15, 2029 | Current year |
β
Good news β amendments are the same steps as Part C, just done once per year
The actual entry of your crypto data inside each amended return is identical to Part C. The only differences:
- Date sold = December 31 of whichever year you're amending (so 12-31-2023 for a 2023 amendment, 12-31-2024 for 2024, etc.).
- Capital loss carryover: if you had a net loss in a prior year, confirm the $3,000/year carryover flowed through to the next year's Schedule D. If it shows $0, enter it manually from prior-year Schedule D line 16.
- Form 6251 (AMT): you almost certainly don't owe Alternative Minimum Tax from crypto. If TurboTax asks, leave blank or type 0.
- State returns: your federal amendment auto-carries to your state. If you were a non-resident of a state where you had no crypto activity, it's fine to mark "no digital assets" on that state return.
- 2022 and older β must be mailed, TurboTax no longer lets you e-file years that old.
β If your amendment adds a capital loss carryover, TurboTax blocks e-file β you MUST mail it
When an amended return includes a change that creates or modifies a capital loss carryover to future years (e.g., you're adding $30,000 of crypto losses that weren't on your original return), TurboTax will refuse to e-file the 1040-X and require you to print and mail it. This is a TurboTax/IRS limitation, not a bug.
What to do: print the full 1040-X packet, attach your Schedule D + Form 8949 + any 1099-DAs, and mail it USPS Certified following Part J. Keep the stamped receipt β it's your proof of timely filing. Heads-up from client feedback: this catches people off guard at the "File" step, so expect it if you're carrying losses forward.
Amending a Prior Year in TurboTax Online
TurboTax Online supports amendments for 2022, 2023, and 2024 if you originally filed with TurboTax. Follow these steps for each year you need to correct:
1
Sign in to TurboTax. Under Tax Returns, find the year you want to amend and click Amend (change) return.
Step 1 β Find the right year on the Tax Returns page
Your tax returns & documents
Pick a year to view, print, or amend.
Click Amend next to whichever year you're fixing. Do them one at a time β finish one amendment fully before starting the next.
2022 amendments can no longer be e-filed β TurboTax forces print & mail for any year 3+ years old.
2
TurboTax will load your original return so you only need to change what's different. Confirm access when prompted.
3
Go to Federal β Wages & Income β Investments & Savings for that prior year and add or correct the crypto data using the BCTP report for that tax year. If you need a prior-year report from us, contact info@cryptotaxprep.io.
4
Note on box codes for prior years: 2021β2024 used different checkboxes than 2025 β Box A or D (reported on 1099-B/DA) and Box C or F (not reported). The new G/H/I and J/K/L digital asset boxes only apply to Tax Year 2025 and later. Your prior-year BCTP report will indicate the correct boxes for that year.
5
TurboTax fills Form 1040-X with the original, change, and corrected columns. Review the net tax change before filing.
6
For 2022 amendments: TurboTax typically requires these to be printed and mailed rather than e-filed. Mail Form 1040-X plus your supporting transaction detail to the IRS address shown on the form.
7
For 2023 and 2024 amendments: You can e-file the 1040-X directly from TurboTax. After e-filing, mail the transaction detail with Form 8453 within 3 business days (see Part H).
8
Track each amended return at
irs.gov/filing/wheres-my-amended-return. Prior-year amendments take 8β20 weeks to process.If You Originally Filed with Different Software
β‘ TurboTax can amend returns you filed elsewhere
Even if you originally used H&R Block, TaxAct, FreeTaxUSA, or a CPA, TurboTax Online can still prepare your 1040-X amendment.
- Start a new return in TurboTax for the prior year and select "I filed with a different service"
- Enter your original return figures when prompted, then add or correct the crypto data
- Alternatively, if you prefer to work through a CPA, contact us and we'll provide a CPA-ready instruction PDF for that prior year
A Note on Multi-Year Cost Basis
Cost basis for cryptocurrency is cumulative across years. If you held assets from 2022β2025, errors in earlier years carry forward into your current cost basis figures. Our report accounts for your full transaction history β do not make manual basis adjustments without consulting us first, as changes to prior years may also affect your 2025 numbers.
β
Need a prior-year report?
We can prepare multi-year reports covering 2022, 2023, 2024, or any combination. Contact us at info@cryptotaxprep.io and we'll get it sorted.
For Tax Year 2025, many clients received a Form 1099-DA from their exchange that shows proceeds but has blank, zero, or incorrect cost basis. This is an industry-wide issue β exchanges were only required to report gross proceeds for 2025, not cost basis. Our report corrects for this.
Below is a breakdown of every scenario you may encounter and exactly what to do in TurboTax for each one.
Scenario 1 β Your 1099-DA Shows Lower Proceeds Than Our Report
π‘ This is expected and normal
Our report is built from your complete transaction history across all wallets and exchanges. Your 1099-DA only reflects what that one exchange captured. We may include additional activity the exchange didn't track β DeFi trades, wallet-to-wallet transfers reclassified as taxable events, or transactions the exchange missed.What to do: Use the proceeds from our report. In TurboTax, when entering the group for that exchange, use our figures β not the 1099-DA proceeds.
Scenario 2 β Your 1099-DA Shows $0 or Blank Cost Basis
β‘ Most common issue in 2025
Most 1099-DA forms issued for Tax Year 2025 report gross proceeds only and leave cost basis blank or show $0. If you filed using those numbers, you would owe taxes on the full proceeds rather than just your actual gain β potentially paying tens of thousands of dollars more than you owe.
What to do in TurboTax:- When entering the exchange group in TurboTax, check: "The cost basis is incorrect or missing on my 1099-DA."
- Enter the corrected cost basis from our Form 8949 summary sheet for that group.
- TurboTax will calculate gain/loss using the corrected figures.
Scenario 3 β Your 1099-DA Shows a Higher Cost Basis Than Our Report
β Less common β but don't just accept it
If your 1099-DA shows a higher cost basis than our report, this usually means the exchange used a different accounting method (e.g., FIFO instead of the method we applied), or it included transfers as purchases. A higher basis means a smaller gain β which sounds good, but using an inconsistent method across exchanges can cause IRS mismatches in future years.What to do: Contact us at info@cryptotaxprep.io before making any changes. We'll review the discrepancy and advise whether to use the exchange figure or ours. Do not file with figures you haven't confirmed with us.
Scenario 4 β Your 1099-DA Includes Transactions That Are NOT Taxable
β Watch for wallet transfers reported as sales
Some exchanges incorrectly reported wallet-to-wallet transfers (moving crypto to your own hardware wallet or another exchange you own) as taxable disposals on Form 1099-DA. These are not taxable events.Our report has already excluded these from your Form 8949 totals. If the 1099-DA proceeds are higher than our report as a result, that difference is explained by these excluded transfers β not missing income.
What to do: Use our report figures. If the IRS sends a notice later asking about the discrepancy between the 1099-DA and your return, your BCTP report and the underlying transaction records are your documentation that those were non-taxable transfers.
What If I Already Filed Using the 1099-DA Numbers?
If you filed using incorrect 1099-DA figures (zero basis, wrong proceeds, or non-taxable transfers counted as sales), you need to file an amended return (Form 1040-X). See Part F for full amendment instructions. If this resulted in overpayment, you may be due a refund β contact us and we'll walk you through it.
β
Keep both documents
Always retain both your 1099-DA and our report. If the IRS ever inquires about the discrepancy between what the exchange reported and what you filed, having both documents β along with our transaction-level detail β is your complete defense. Our report includes the blockchain-verified transaction history that supports every figure.
If your PDF tax analysis includes a Section 8 β Theft Loss Analysis or any mention of IRC Β§165, this section applies to you. If your analysis does not mention theft loss, you can skip this section entirely.
β Do NOT file until you have read this section and consulted a CPA
Theft loss figures are not included in your Form 8949 capital gains totals and are not entered anywhere in the normal TurboTax crypto flow. Filing incorrectly β or filing without the CPA determination β could result in a disallowed deduction, penalties, or an amended return.
What Is an IRC Β§165 Theft Loss?
The IRS treats cryptocurrency as property. When crypto is stolen β via a wallet hack, exchange collapse, rug pull, or similar β the loss is governed by IRC Β§165, not reported as a capital loss on Schedule D. The relevant provision for most crypto investors is IRC Β§165(c)(2), which allows a deduction for theft losses from transactions entered into for profit.
Under the Tax Cuts and Jobs Act (2017β2025), personal casualty and theft losses (Β§165(c)(3)) are largely suspended. However, Β§165(c)(2) investment-related theft losses are not suspended and may still be deductible β potentially as an ordinary loss with no annual cap, which can significantly reduce taxable income.
Key IRS Authority
| Authority | What It Means for You |
|---|---|
| IRC Β§165(c)(2) | Deduction for theft losses from profit-motivated transactions (investing) |
| IRC Β§165(e) | Theft loss is deductible in the year of discovery, provided no reasonable prospect of recovery exists |
| Treas. Reg. Β§1.165-8 | Loss amount = adjusted cost basis of stolen assets; FMV after theft is treated as zero |
| IRS CCA 202302011 | Crypto theft is governed by IRC Β§165 β NOT Β§1001; no Schedule D capital loss |
| IRS CCA 202511015 | 2025 IRS guidance: profit-motivated crypto theft may qualify under Β§165(c)(2) |
| IRS Tax Topic 515 | Casualty, disaster, and theft losses β reported on Form 4684 |
| Notice 2014-21 | Cryptocurrency is property for federal tax purposes |
How the Deductible Amount Is Calculated
Under Β§165, the deductible amount is your adjusted cost basis in the stolen assets β what you originally paid for them β not the market value at the time of theft. If you purchased Bitcoin in 2019 for $5,000 and it was stolen when worth $50,000, your deductible loss is $5,000, not $50,000. The difference represents unrealized appreciation that was never taxed and therefore cannot be deducted.
Your PDF tax analysis includes a detailed table showing the cost basis and market value for each stolen asset, along with the methodology used to calculate each figure. Review Section 8 of your PDF for your specific numbers.
Two Requirements Your CPA Must Confirm
β‘ CPA Determination Required β Two Factors
Before claiming the Β§165(c)(2) deduction, your CPA must evaluate two things:
- Profit motive: Were the stolen assets held for investment or profit? For most crypto investors, yes β but this must be established based on your specific facts.
- No reasonable prospect of recovery: As of December 31 of the tax year, was there no realistic chance of recovering the stolen assets? If the theft involved an untraceable hack or abandoned protocol, this is typically satisfied.
If both factors are met, the deduction may be available. If either is in doubt, the deduction should not be claimed without further analysis.
How to Report It in TurboTax (If Your CPA Approves)
1
Complete your regular crypto capital gains entry first (Parts CβE of this guide). The theft loss is entirely separate.
2
In TurboTax, go to Federal β Deductions & Credits β Other Deductions and Credits.
3
Select Casualty and Theft. TurboTax will open Form 4684 (Casualties and Thefts).
4
On Form 4684, use Section B β Business and Income-Producing Property (not Section A, which is personal-use property and suspended under TCJA).
5
Enter the description of the stolen property, the date of theft, and the adjusted cost basis from your PDF tax analysis theft loss table.
6
Enter $0 for the fair market value after the theft (the assets are gone).
7
Enter $0 for any insurance or reimbursement received (unless you actually received compensation).
8
TurboTax will calculate the deductible loss and carry it to the appropriate line. The deduction flows as an ordinary loss β not a capital loss on Schedule D.
Documentation You Must Retain
β
Keep all of the following in your records
- The theft transaction hash(es) from the blockchain
- On-chain records confirming the unauthorized transfer
- Your PDF tax analysis (Section 8 β Theft Loss Analysis)
- Original purchase confirmations or exchange records establishing cost basis
- Any police reports, exchange communications, or incident reports filed
- Documentation of no recovery as of December 31 of the tax year
π‘ Questions about your theft loss analysis?
Contact us at info@cryptotaxprep.io and we can refer you to a qualified crypto tax attorney or CPA who handles Β§165 claims. Do not attempt to claim this deduction without professional review.
When using the Sales Section Totals method (which we always use), the IRS needs to see the underlying transaction detail. There are two paths β try the first one, then fall back to the second.
Option 1 β Upload in TurboTax (easiest, try first)
β
The 30-second version
In TurboTax Online, look for the Documents tab in the left sidebar.
- Click Add tax docs β Upload files from this device.
- Upload your full BCTP PDF packet (or the Form 8949 PDF export from your Excel workbook).
- If TurboTax accepts it, you're done β no mailing required.
- If TurboTax tells you this document must be mailed (some returns get this message, some don't), move to Option 2.
Option 2 β Mail Form 8453 + Transaction Detail
If the Documents tab upload isn't available, mail within 3 business days of your e-file being accepted (or with your paper return if you're filing by mail).
1
Download blank Form 8453 from
irs.gov. Fill in your name, SSN, and tax year.2
Check the box for Form 8949 on Form 8453.
3
Print: (a) Form 8453, (b) the Schedule D + Form 8949 pages from your BCTP PDF, and (c) your 1099-DA(s) from each exchange (optional but helpful for the IRS).
4
Before mailing, open the PDF and replace the placeholder name on our Schedule D / 8949 PDFs with your full name and the last 4 digits of your SSN. This ties the documents back to your return.
5
Mail to:
Internal Revenue Service
Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254
Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254
β‘ USE USPS CERTIFIED MAIL β NOT UPS, NOT FEDEX
Go to your local U.S. Post Office and ask for Certified Mail. The clerk stamps the mailing date on a receipt and gives it to you. That receipt is your proof of timely filing β even if the IRS receives it after April 15, the postmark date is what counts. UPS and FedEx don't produce this IRS-recognized receipt.
π‘ Filing for a family or multiple years? Bundle it.
You can put multiple tax years and multiple family members in a single certified envelope. Just separate them with a cover page for each section, clearly labeled β for example:
- "2023 β Jane Doe β Schedule D + Form 8949 + Crypto.com 1099-DA"
- "2024 β Jane Doe β Schedule D + Form 8949 + Crypto.com 1099-DA"
- "2024 β John Doe (spouse) β Schedule D + Form 8949"
Paperclip each year's packet. One envelope, one Certified receipt, covers all of them.
β
When mailing is NOT required
If all your transactions are in Box G or Box J (1099-DA received and cost basis was reported to the IRS by the exchange) with no adjustments needed, you qualify for IRS Exception 1 and mailing is not required. Your Form 8949 summary sheet will note this if it applies to you.
My 1099-DA shows different numbers than the report I received. Which do I use?
Always use the numbers from our report. The proceeds in our report should be equal to or greater than what appears on your 1099-DA β this is expected, because our report is built from your complete transaction history and may capture activity the exchange doesn't have on record. In TurboTax, check "cost basis is incorrect or missing on my 1099-DA" and enter the figures from your Form 8949 summary sheet. Keep both documents for your records.
TurboTax is asking me to upload (or import) my 1099-DA. Should I?
It depends what kind of upload. Yes if it's just attaching the PDF as a document (Documents tab, or the "IRS requires a copy" screen) β that's safe and the IRS actually wants this. No if it offers to import transactions from the 1099-DA file β that pulls everything in with $0 cost basis and can inflate your tax bill by tens of thousands of dollars. Always enter the numbers from our Sales Section Totals by hand.
TurboTax won't let me type "Various" in the Date field anymore.
TurboTax 2025 changed these to dropdowns. For Date acquired, click the dropdown β pick "Something other than a date" β type Various. For Date sold, just type 12-31-2025 (or 12-31 of whatever tax year you're filing). This same trick works on amended prior-year returns β just use the right year.
The TurboTax dropdown doesn't say "Box H" or "Box K." Which one do I pick?
TurboTax uses long descriptions instead of letter codes. The quick rule: "basis not reported to IRS (non-covered)" is what you want for almost every crypto group β that's Box H (short-term) or Box K (long-term). Never pick "basis reported" for crypto β that's for traditional brokerages that have tracked cost basis for decades. See the translation table in Part B for all six boxes.
I did margin trading (BloFin, Bybit, etc.). Where does that go?
Margin trading is split into two parts. The gain/loss goes on Form 8949 as Box I (short-term, no 1099-DA) β one summary line labeled "Cryptocurrency β Margin Trading." The fees go on Form 4952 (Investment Interest Expense) under Deductions & Credits β Retirement and Investments β Investment Interest Expenses. Entering fees in both places double-counts. See the Margin Trading section.
TurboTax won't let me e-file my amendment. It says I have to mail it. Why?
If your amendment creates or changes a capital loss carryover to future years β common when adding prior-year crypto losses that weren't originally reported β TurboTax blocks e-file and requires you to print and mail Form 1040-X. This is a TurboTax/IRS limitation, not a mistake in your return. Print the full 1040-X packet, attach Schedule D + Form 8949 + any 1099-DAs, and send USPS Certified Mail following Part J. Keep the stamped receipt as proof of timely filing.
I'm filing amendments for multiple years. Do I need to mail each year separately?
No β you can bundle everything into one USPS Certified Mail envelope. Just separate each year's packet with a labeled cover sheet (e.g., "2023 β Jane Doe β Schedule D + 8949"). Multiple family members can go in the same envelope too. One certified receipt covers everything. Go to the regular U.S. Post Office β NOT UPS or FedEx β because only USPS Certified Mail produces the postmark-date receipt the IRS recognizes as proof of timely filing.
I transferred crypto between my own wallets or exchanges. Is that taxable?
No. Moving crypto between accounts you own is not a taxable event. Our report has already identified and excluded these transfers from your capital gains calculations β they are not in your Form 8949 totals.
I only bought crypto in 2025 and never sold. Do I need to report anything?
No capital gains tax is owed on crypto you held without selling, swapping, or spending. However, you must still answer "Yes" to the Form 1040 digital asset question β it asks whether you acquired digital assets in 2025, not just whether you disposed of them.
TurboTax is asking me to "connect" to my exchange. Should I?
No. Do not connect TurboTax directly to your exchange. It imports raw unreconciled data that hasn't been cross-referenced with your full history across all platforms β this can create duplicate entries, missing transactions, or wrong cost basis. Always choose "Enter a different way" and use the Sales Section Totals from your Form 8949 summary sheet.
What TurboTax version do I need?
TurboTax Deluxe or Premium (Online). Free Edition does not include Schedule D or Form 8949 and cannot be used for crypto capital gains reporting.
Do staking rewards and airdrops get reported differently from my capital gains?
Yes. Staking rewards, liquidity pool yields, airdrops, and other crypto income received in 2025 are ordinary income taxable in the year received. They go on Schedule 1 (see Part E) β not on Form 8949 with your capital gains. Check the "Form 1040 Schedule 1" tab in your Excel workbook to see if this applies to you.
I have unreported crypto from 2022, 2023, or 2024. What should I do?
File amended returns (Form 1040-X) as soon as possible. The 2022 window closes April 15, 2026 β after that you lose the ability to claim any refund for that year. See Part G for full step-by-step instructions. Contact us at info@cryptotaxprep.io if you need a prior-year report prepared.
My PDF analysis mentions a theft loss or IRC Β§165. What do I do with that?
Do not file without speaking to a CPA first. Crypto theft losses under IRC Β§165 are handled separately from capital gains, are not on Form 8949, and require a CPA determination as to deductibility. Your PDF analysis explains the specifics of your situation. Reach out to us at info@cryptotaxprep.io and we can refer you to a qualified crypto tax professional.
Something doesn't look right in my report, or I have questions before I file.
Contact us before you file. Don't submit your return with figures you're uncertain about. Email us at info@cryptotaxprep.io or visit cryptotaxprep.io. We respond during tax season as quickly as possible β please reach out early given the April 15, 2026 deadline.
Quick definitions for the terms in this guide. If you see something you don't recognize, check here first.
1099-DAThe new tax form (starting 2025) that exchanges like Coinbase send you and the IRS. Reports your gross sales (proceeds) but usually leaves cost basis blank.
Form 8949The IRS form that lists every crypto sale or swap. Yours is built for you in your Excel workbook.
Schedule DThe IRS form that totals up your gains and losses from Form 8949. TurboTax fills this in automatically.
Schedule 1A separate form for "other income" β staking rewards, airdrops, mining, etc. Not on Form 8949.
Form 4952Where margin trading fees go (as Investment Interest Expense). Different from your gain/loss.
Form 8453A cover page you mail to the IRS along with your full transaction detail. Required when using Sales Section Totals (which we do).
Form 1040-XThe IRS form for amending an already-filed return. Used if you filed without your crypto or with wrong numbers.
Cost basisWhat you originally paid for an asset (plus fees). Used to calculate your gain or loss.
ProceedsWhat you sold an asset for. Gain/loss = proceeds β cost basis.
Sales Section TotalsAn IRS-approved shortcut: instead of listing every trade individually, you enter one summary line per group (Box H, Box K, etc.) and mail the detail.
Box H / K / I / LCategories on Form 8949. Box H = short-term with 1099-DA but no basis (most Coinbase). Box K = long-term version. Box I/L = no 1099-DA at all (DeFi).
Short-term / Long-termHeld less than 1 year = short-term (taxed at your normal rate). Held over 1 year = long-term (lower tax rate).
DeFi"Decentralized finance" β Uniswap, Pendle, Aave, etc. No exchange issues a 1099 for these. Your DeFi activity is in the "Non 1099-DA" group.
Wallet transferMoving crypto from one wallet you own to another. Not taxable. Already excluded from your totals.
Carryover lossIf your losses exceeded your gains by more than $3,000 in a year, the extra carries forward to future years until used up.
Margin tradingBorrowing money from an exchange to make bigger trades. Has its own gain/loss line + fees on Form 4952.
USPS Certified MailA stamped-receipt mail service from the U.S. Post Office. Only this counts as IRS proof of timely filing β UPS and FedEx don't.
"Various"A placeholder you use in date fields when a group covers many different acquisition dates. TurboTax 2025 makes you pick "Something other than a date" β type "Various."
Don't file with figures you're not sure about. If anything in this guide doesn't match what you're seeing, or you hit a screen we didn't cover β email us. It's free, we respond quickly during tax season, and a 5-minute exchange beats an amended return later.
What to include in your email: your full name, the tax year, the section of this guide you're on (e.g., "Part C Step 12"), and a screenshot of what TurboTax is showing you. We'll reply with the exact answer.