What are the common mistakes to avoid when using TurboTax Deluxe for cryptocurrency taxes?

3 answers

• May 02, 2022 · 3 years ago
  One common mistake to avoid when using TurboTax Deluxe for cryptocurrency taxes is failing to report all cryptocurrency transactions. It's important to accurately report all buys, sells, trades, and any other transactions involving cryptocurrencies. Failing to do so can lead to penalties and potential audits from the tax authorities. Make sure to keep detailed records of all your cryptocurrency activities to ensure accurate reporting.
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• May 02, 2022 · 3 years ago
  Another mistake to avoid is not properly categorizing your cryptocurrency transactions. TurboTax Deluxe provides different categories for different types of income, such as capital gains, dividends, or interest. It's crucial to correctly categorize your cryptocurrency transactions to ensure accurate calculations and tax reporting. If you're unsure about the proper categorization, consult with a tax professional or refer to the IRS guidelines.
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• May 02, 2022 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, recommends double-checking your entries when using TurboTax Deluxe for cryptocurrency taxes. Mistakes in data entry can lead to incorrect calculations and potentially trigger an audit. Take your time to review all the information you've entered, including transaction dates, amounts, and any additional details. It's better to spend a little extra time ensuring accuracy than dealing with the consequences of incorrect tax filings.
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