What are the common issues with using TurboTax for cryptocurrency tax reporting?

3 answers

• Dec 16, 2021 · 3 years ago
  One common issue with using TurboTax for cryptocurrency tax reporting is that it may not accurately handle the complexities of cryptocurrency transactions. TurboTax is primarily designed for traditional tax reporting, and it may not have the necessary features to accurately calculate gains, losses, and other tax implications specific to cryptocurrencies. This can lead to incorrect tax filings and potential audits from the IRS. It's important to carefully review and double-check the calculations made by TurboTax when reporting cryptocurrency taxes.
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• Dec 16, 2021 · 3 years ago
  Another common issue is that TurboTax may not support all types of cryptocurrencies. While it may have built-in support for popular cryptocurrencies like Bitcoin and Ethereum, it may not have the necessary tools to handle less common or newly emerging cryptocurrencies. This can make it difficult for users to accurately report their cryptocurrency holdings and transactions, potentially leading to incomplete or inaccurate tax filings.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we recommend using specialized cryptocurrency tax software instead of relying solely on TurboTax. These software solutions are specifically designed to handle the complexities of cryptocurrency tax reporting and provide accurate calculations for gains, losses, and other tax implications. They often have built-in support for a wide range of cryptocurrencies and can generate comprehensive tax reports that are compliant with IRS guidelines. By using dedicated cryptocurrency tax software, you can ensure that your tax filings are accurate and minimize the risk of audits or penalties.
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