In this article, we'll include instructions on how to upload your forms 8949 to TurboTax Online as well as how to troubleshoot a number of common issues that our users run into.
Please Note: TurboTax’s CSV uploads do not contain the customary boxes a-f to indicate whether the IRS 8949 corresponds to a 1099-B and whether cost basis was reported by such platform. Failure to indicate the appropriate box may result in a risk of audit. TaxBit does not assume liability in the event TurboTax’s software fails to mark the appropriate box and thereby fails to indicate whether the IRS 8949 relates to a 1099-B.
Additionally, we've been made aware of a step that users are being asked to complete while preparing to file using TurboTax Online. This step asks users to review each transaction that is imported with a CSV form 8949 which is used to report the disposals of digital assets. TaxBit has determined a workaround to this review step, as it is unnecessary to manually review every single transaction.
- How to Upload your 8949 to TurboTax Online
- I'm being asked to review my cryptocurrency transactions after I've imported them. Why is that?
- I received an error message. What do I do?
How to Upload your 8949 to TurboTax Online
Once you have your forms 8949 downloaded, you're ready to navigate TurboTax to upload your file and include that form with your tax filing. After your initial TurboTax info set up, you'll see the following page. Navigate to your "Federal" tax filing and make sure you're under the "Wages & Income" tab. If you see the "Add more income" button under your primary income items, select that button to bring up the longer list.
Scroll down that "Wages & Income" tab to the "Investments and Savings" option. Select the "Show More" option.
Select "Start" or "Revisit" next to the "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) row".
If you've already entered any data in this section, you may see an investment sales summary page. You can select "Add investments" below that section to add an additional file. If you have not entered anything, you will be taken to a section called "Time to kick off your investments!" Select “Okay!”.
Again, select "Continue"
Next, select "Enter a different way".
Next, select "Cryptocurrency" and then select "Continue".
On the next page, select the "Upload it from my computer" box and then select "Continue"
On this page, select the dropdown under "Crypto Service" and select "Other"
TaxBit provides all users with exchange specific tax forms, while you may have the option to import these all together in the consolidated file we provide to our paid subscription tiers, you may find that importing them by exchange provides you with a more specific breakdown of your gains and losses reporting.
For the "Name" section, you can either enter "TaxBit" if you are importing a consolidated 8949 file or your can enter the name of the exchange you are importing. TurboTax will accept any entry on this screen, so it's okay if you miss-type something.
Select "Browse" and then select the file you are importing. Again, users who have a paid subscription will have a consolidated 8949 file in their forms 8949 download that they can import in one upload. For all users, you have the option of importing one exchange at a time, until all of your exchanges are accounted for.
Additionally, TurboTax limits reporting in this category to 4000 rows of data in a CSV file.
Please Note: You must Unzip the downloaded file from TaxBit before you are able to import it into Turbotax. If you don't unzip the file, you will see an error message that states "We looked, but couldn't find any data in your file".
You will now be taken to your investment sales summary page. From this page you can see the summary of files already imported, and you can select "Add investments" if you have additional files to import. If you have imported all of your forms 8949 files, then you are finished with this part of your filing process.
- Click here to be routed back to the appropriate step in this guide to import an additional file.
- I received an error message. What do I do?
Due to TurboTax requiring users to review every digital asset disposal that is imported with a CSV, there are additional steps that you will need to take when you are ready to complete your filing during the "Review" phase.
I'm being asked to review my cryptocurrency transactions after I've imported them. Why is that?
Now that you are finished adding data related to forms 8949 in your TurboTax account you are ready to move on to the review phase. TurboTax is notifying users under the review phase that they need to review each and every transaction that is reported through an 8949, and answer a question about where they obtained the assets. This information is not only unnecessary for reporting these disposals, it's not actually possible to transmit this information to the IRS with forms 8949 and the question should not be asked in the first place. In addition to this, TurboTax has not provided any way to import data like this in a CSV format, and include the information they are asking for.
For this reason, you should simply ignore TurboTax's suggestion to review each transaction.
You can simply continue on to the next steps, and ignore the request to review your cryptocurrency activity.
You can continue with your filing by scrolling to the bottom of this list.
I received an error message. What do I do?
There are multiple types of importing that we've seen reports of. If you received an error message like either of the following (or something similar):
Then there may be something wrong with the file that you are importing. Here are a few rules to consider when using the TaxBit form 8949 TurboTax Online CSV.
- If the file name you are trying to import does not contain "turbotax" then you are not using the right file. TaxBit offers multiple types of CSV export on the taxes page, and it's important that you download the one called.
- It's important that files downloaded from TaxBit are "unzipped" before trying to import into TurboTax. If you don't unzip the folder before importing the file, the import will not work, and TurboTax will assume the file is blank.
- We recommend that you don't open, or edit the file that we provide. Doing so can change the formatting or file type.
The most effective way to ensure your file is correct, is to be sure to select the right option from our forms 8949 download list.
After you've downloaded your file again, try the import again.
If it's still not working, we did have one occasion during internal testing that we were unable to get any imports to process. After allowing 2 hours to pass, the files imported just fine. If you feel that you have the correct file, and it's not been changed in any way, please try the file import again later that day, or the next day.
What if I have more than 4000 transactions in one of my files?
TaxBit does not currently have a solution for filing with TurboTax if you have more than 4000 lines of data in your export. TurboTax has established this limitation and we are looking into what options we can offer in the future.
Still have questions? You can interact with our Chatbot by selecting the Chat Widget located at the bottom right side of your screen, or send us an email at firstname.lastname@example.org and we'd be happy to help!
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