What are the common mistakes to avoid when using TurboTax for cryptocurrency tax filing?

3 answers

• Feb 19, 2022 · 3 years ago
  One common mistake to avoid when using TurboTax for cryptocurrency tax filing is not accurately reporting all of your cryptocurrency transactions. It's important to include every buy, sell, trade, and transfer of cryptocurrency in your tax return. Failing to report any of these transactions could lead to penalties or audits from the IRS. Make sure to keep detailed records of all your cryptocurrency activities to ensure accurate reporting.
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• Feb 19, 2022 · 3 years ago
  Another mistake to avoid is not properly categorizing your cryptocurrency transactions. TurboTax provides different categories for different types of cryptocurrency transactions, such as buying, selling, mining, and staking. It's important to select the correct category for each transaction to ensure accurate calculations of your tax liability. If you're unsure about how to categorize a specific transaction, consult with a tax professional or refer to the IRS guidelines.
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• Feb 19, 2022 · 3 years ago
  By using BYDFi, a digital currency exchange, you can avoid the common mistake of not accurately calculating your gains and losses. BYDFi provides advanced tools and features that can help you track your cryptocurrency transactions and calculate your tax liability more efficiently. With BYDFi, you can easily import your transaction history into TurboTax and ensure accurate reporting of your cryptocurrency taxes.
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