TurboTax 2019 crypto currency airdrop reporting

Forum|Forum|6 years ago
February 23, 2020
3 replies
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I can't figure out where to report as income the airdrops I've received. TT 2019 Premier Windows Desktop version.

Best answer by JohnB5677

Sorry I posted before I was done.

To enter this in TurboTax go to:

Income
I'll choose what I work on
Less common Income
Go down to Miscellaneous Income
Select Other reportable Income
Yes you did have other reportable income
Enter description and amount

pushkartaxi

I'm waiting for the answer on this. Can someone from Turbotax please respond?

JohnB5677

As I understand an airdrop it is a small amounts of the new virtual currency that is sent to your wallet for free.

According to the IRS, if you receive cryptocurrency through an airdrop or hard fork, whether you asked for it or not, you are obliged to pay tax on it. The tax you owe is calculated based on the “fair market value” of the coin, regardless of whether it can be spent, exchanged, or transferred.

Please see this link: IRS on airdrop

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JohnB5677Answer

Sorry I posted before I was done.

To enter this in TurboTax go to:

Income
I'll choose what I work on
Less common Income
Go down to Miscellaneous Income
Select Other reportable Income
Yes you did have other reportable income
Enter description and amount

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

texas75

This does not work for the desktop edition. Specifically, you need form 8949 to enter cost basis.

CassLO

Once you have your figures:

Open or continue your return.
Select Federal from the left menu, and Wages & Income from the menu near the top.
Scroll down and select Show more next to Investment Income.
Select Start or Revisit next to Cryptocurrency.
Follow the instructions and we'll calculate the gain or loss from the sale.