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What are the common mistakes to avoid when using TurboTax Desktop for filing taxes on cryptocurrency investments?

avatarSwarnadweep PanjaDec 26, 2021 · 3 years ago3 answers

What are some common mistakes that people should avoid when using TurboTax Desktop to file taxes on their cryptocurrency investments?

What are the common mistakes to avoid when using TurboTax Desktop for filing taxes on cryptocurrency investments?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    One common mistake to avoid when using TurboTax Desktop for filing taxes on cryptocurrency investments is failing to report all of your transactions. It's important to accurately report all of your cryptocurrency trades, including buys, sells, and exchanges. This information is necessary for calculating your capital gains or losses. Failing to report all of your transactions can lead to penalties and audits from the IRS.
  • avatarDec 26, 2021 · 3 years ago
    Another mistake to avoid is not keeping proper records of your cryptocurrency transactions. It's crucial to maintain detailed records of your trades, including the date, time, amount, and value of each transaction. This will help you accurately calculate your gains or losses and provide evidence in case of an audit. Without proper records, it can be challenging to accurately report your cryptocurrency investments.
  • avatarDec 26, 2021 · 3 years ago
    When using TurboTax Desktop for filing taxes on cryptocurrency investments, it's important to review your tax return carefully before submitting it. Double-check all the information you've entered, including your cryptocurrency transactions and any deductions or credits you're claiming. Mistakes or inaccuracies in your tax return can lead to penalties or delays in processing. Take the time to review your return thoroughly to ensure its accuracy.