H&R Block Crypto Tax Filing Guide 2023

Getting Started

If you’re completely new to H&R Block, then you’ll need to answer a few general set up questions before you can make a start with your crypto taxes. During this general set-up, you will be asked if you received, sold, exchanged or disposed of any cryptocurrency. If you can answer this question as yes, be sure to do so.

Reporting Your Gains

Gains Summarized

The easiest way to report your cryptocurrency gains and losses is to summarize them into short and long term. This will save you a lot of time, but you will need to send an attachment with detailed information. 

1. In the Income section, navigate to the “Cryptocurrency” section and click “Start”. If you do not see this section, select “Add income”, expand the “Investments” menu, and select “Cryptocurrency”.
2. On the next screen, select “Report Crypto transactions Totals” as we are entering summarized gains.
3. The next screen will have you select whether you are entering short-term or long-term gains. You can select both if you have short and long-term gains, but you will have to enter them separately regardless.
4. After one more reminder about sending your attachment, the following screen will prompt you to enter your sale. In the example below, we are entering all short-term sales, the total from your accointing tax report “Taxable disposals short term”. Make sure to enter the correct proceeds and cost basis as indicated in your report.
5. Now you will come back to the summary screen for capital gains and losses.  If you entered your short-term trades only, click on “Add transaction” and follow the same steps once again to enter your long-term trades. As short and long term gains are taxed differently, you must always break out the short from the long at a minimum. Once you have entered both short and long-term sales, click “Complete” on the summary screen.
6. The next screen will ask you how you want to send in your attachment. H&R Block allows you three ways to send the attachment, whether uploading a file to electronically file with your tax return, printing and mailing Form 8453, or otherwise you can print and mail your entire tax return. Select the option you prefer and click “Next”.

For additional information on generating and filing your attachment to form 8949, check out our Crypto Gains – Attachments to your 8949 guide.

Gains In Full Detail

If you wish to enter all your gains manually, follow the steps below:

1. In the Income section, navigate to the “Cryptocurrency” section and click “Start”. If you do not see this section, select “Add income”, expand the “Investments” menu, and select “Cryptocurrency”.
2. On the next screen, select “Enter transactions manually” to enter the detail of each sale. It’s important to remember that if you select this option, you must enter every single taxable sale and trade provided in your detail. You can find this information by reporting based on your ‘Form8949-Short-Term-Disposals’ and ‘Form8949-Long-Term-Disposals’ csv files.
3. Enter all applicable information for each sale. You can list accointing for the service provider or list the exchange where you sold the crypto. Enter the amount and description of the asset, date of acquisition, date of sale, proceeds and cost basis as provided in your 8949 csv reports.
4. Select “Save and Add Another” and repeat this process until you have entered all your trades and when done select “Save and Review”.

Reporting Your Crypto Income 

We now have to enter any other taxable crypto income such as mining, staking, airdrops or hard forks. Keep in mind that if your income is from a trade or business, such as a Bitcoin mining operation, you will need to report as such. For everyone else, how you report this income will depend on whether you:

Received a 1099-MISC

1. In the Income section, navigate to the “1099-MISC Box 3 income from a one-time event or hobby” section and click “Start”. If you do not see this section, select “Add income” expand the “Less Common Income” menu, and select “1099-MISC Box 3 income from a one-time event or hobby”.
2. On the next screen, select “Add 1099-MISC”.
3. On the next screen, enter the information as it appears on your 1099. Enter the payer name and any information on the 1099 as reported. If this is for crypto income, it will likely only have box 3 with figures, in which case enter the payer name and the box 3 amount.
4. The next screen will ask what the income reported is for. If this is for crypto income on an exchange not from a trade or business, you should select “it’s from a hobby” or “it’s something else”.
5. If you have additional crypto income not reported on a 1099-MISC the following section will help you report it.

Did not receive a 1099-MISC

1. In the Income section, navigate to the “Income not reported anywhere else” section and click “Start”. If you do not see this section, select “Add income” expand the “Less Common Income” menu, and select “Income not reported anywhere else”.
2. On the next screen, scroll to the bottom under “Additional income not reported elsewhere” and type the description and amount of income. You will find your total taxable income on your accointing tax report page 1, but pay careful attention not to double report any income included on your tax report and also reported separately on a 1099-MISC. Refer to our Crypto Forms 1099 article for more information on 1099s.

For additional information on filing your crypto taxes, including 1099 questions, extending your tax return and attachments, check out our Crypto Tax Filing Guide 2023.

The information contained in this guide, including any supplemental materials, is for general information purposes and does not constitute financial, investment, legal or tax advice. The present content is not intended as a thorough, in-depth analysis, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. Please consult your tax advisor.