Which TurboTax Does a Cryptocurrency Investor Need?
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Cryptocurrency is treated as property for taxes, which means selling, trading, or spending it is a taxable event. Every time you sell crypto for cash, swap one coin for another, or use crypto to buy something, you have a gain or loss based on what you paid versus its value at the time. On top of that, crypto you earn from staking, rewards, or as payment is generally taxable income the moment you receive it. This catches a lot of people off guard.
The challenge is volume and record-keeping. Active traders can rack up thousands of transactions across multiple exchanges and wallets, each needing a cost basis. Exchanges may send a 1099, but coverage is inconsistent, so you're often the one responsible for putting together a complete picture. Many investors use a crypto tax aggregator to produce a summary they can import.
TurboTax Premium (Online)
Premium is the online edition that supports cryptocurrency alongside your other investments. It handles crypto capital gains and income, and it can import from a number of exchanges and crypto tax services so you don't have to enter thousands of transactions by hand. If your crypto activity is complex, it's also the base for Live Assisted Premium if you want an expert's eyes on it.
Alternatives to consider
Every trade is a taxable event
It's not just selling for cash that triggers tax. Swapping one cryptocurrency for another and spending crypto on a purchase are both disposals that create a gain or loss. People often assume only cashing out matters, then discover that a year of coin-to-coin swaps generated taxable gains. TurboTax reports these on Form 8949 and Schedule D, but you have to capture every transaction first.
Earned crypto is income
Crypto you receive from staking, mining, airdrops, rewards, or as payment for work is generally taxable as income at its fair market value the moment you receive it. That value also becomes your cost basis going forward. This is separate from capital gains, so you may have both income and gains to report. Keeping dated records of what you received and its value at the time is essential.
Frequently asked questions
I only swapped coins and never cashed out. Do I owe tax?＋
Possibly, yes. Trading one crypto for another is a taxable disposal, so each swap can produce a gain or loss even though you never touched any cash. These need to be reported.
My exchange didn't send a tax form. What do I do?＋
You're still responsible for reporting. Pull your transaction history and, if you have a lot of activity, use a crypto tax aggregator to produce a summary you can import into Premium.
Is staking income taxable?＋
Generally, yes. Staking rewards are typically taxed as income at their value when you receive them, and that value becomes your basis for later gain or loss calculations. Premium handles both pieces.
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