Report Virtual Currency Exchanges on Your Taxes
If you sold or exchanged a virtual currency, such as crypto, you will need to answer "yes" to the digital asset question. This question requires a response and eFile will not let you proceed without checking "yes" or "no" as per IRS regulation. To determine which to select, refer to the table below or contact us for free help.
No
You held virtual currency in your wallet or account.
No
You transferred virtual currency between one personal wallet or account to another.
No
You purchased virtual currency using a real currency which includes purchases made through a third-party platform like PayPal.
No
You engaged in any holding, transferring, or purchasing of virtual currency through your own accounts where another party was not involved and no sales were made.
Yes
You sent or received virtual currency in exchange for services and/or goods; you received or transferred a virtual currency for free which does not qualify as a bona fide gift; you acquired a new virtual currency after staking, mining, or from a hard fork; you exchanged or traded one virtual currency for another virtual currency; you sold virtual currency; you disposed of any financial interest in virtual currency.
If none of the above apply, select "no." If you select "yes", then you will need to add your investment income or loss from your virtual currency transaction. You can do this by returning to the income section to add your investment.
You may get a 1099-B for your transactions and you can follow the instructions on this page: 1099-B investment instructions - note that the IRS is expected to finalize and use Form 1099-DA for digital asset income in 2025. Whether or not you received a 1099-B, you can follow the steps below.
eFile App Instructions
2. Where Do I Enter Data?
eFile will guide you through entering all types of income. You will be prompted to enter your 1099-B and any other investment sales the Investments section. Have any forms ready and enter them as they apply; answer "Yes" that you received a 1099-B to be guided through each section - you can still fill out this section if you did not get a 1099-B. If you sold multiple stocks or assets, you would need to individually report each line item since they have unique dates and descriptions.
3. How to Manually Add Data
To manually add your form, navigate to Federal Taxes > Review > I'd like to see the forms I've filled out or search for a form and enter "1099-B." You can then fill out the details based on your form(s). You can still fill out this page if you did not get a 1099-B. If you sold multiple stocks or assets, you will need to individually report each line item since they have unique dates and descriptions.
4. How to Add, Delete a Form or Page
After adding all your investments, your gains and losses will be calculated on your return and Schedule D and Form 8949 will be generated for you as needed.
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