Chapter 9

Using TaxAct To Report Crypto Taxes

TaxAct is another American software company that specializes in tax preparation software. Their software package - TaxAct, caters to individuals, professional affiliates as well as companies. Like most other tax collation and filing software products, the TaxAct has also incorporated the filing of cryptocurrency taxes in their offerings. This process involves the following steps,

  1. The first step is to create an account on the TaxAct web portal. This is relatively easy as it requires basic information and is done in a few steps.

  2. Once the TaxAct account is created, users must navigate to the section titled 'Investment Income' under 'Federal'.

  3. The next step is to select 'Gain or loss on the sale of investments' under the 'Investment Income' drop down options.

  1. The 'Gain or loss on the sale of investments' section has several options. For crypto taxation purposes, the 'Stock import data' option is the one to be selected.
  1. Here one can select how to import cryptocurrency transaction data into the TaxAct Account. This can be done as an electronic import or as a CSV import. CSV files can be compiled using third-party software or can be self-created as well.
  1. Once the user downloads the file a preview of the same is also shown to ensure that the format of the downloaded data matches the original format.

  2. After verifying all data, TaxAct Stock Assistant can be launched. This section allows for managing all transactions in a single location.

  1. TaxAct account can now be used to select and file the relevant crypto taxes.