Do I need to report cryptocurrency?
Menu Path: Income > Cryptocurrency
The IRS uses the term "digital assets" to describe any digital value that's recorded on a cryptographically secured distributed ledger or any similar technology. For example, digital assets include non-fungible tokens (NFTs) and virtual currencies, such as cryptocurrencies and stablecoins. Regardless of what it's called, if a particular asset has the characteristics of a digital asset, it will be treated as a digital asset for tax purposes.
The IRS requires you to indicate on your tax return if you engaged in certain transactions involving digital assets during 2025. If you enter a crypto sale in our software, we'll automatically indicate (on your return) that you engaged in digital asset transactions.
When you can check "No"
You can choose no if your crypto activities in 2025 were limited to:
You must choose yes if your crypto activities in 2025 included any of the following:
The IRS uses the term "digital assets" to describe any digital value that's recorded on a cryptographically secured distributed ledger or any similar technology. For example, digital assets include non-fungible tokens (NFTs) and virtual currencies, such as cryptocurrencies and stablecoins. Regardless of what it's called, if a particular asset has the characteristics of a digital asset, it will be treated as a digital asset for tax purposes.
The IRS requires you to indicate on your tax return if you engaged in certain transactions involving digital assets during 2025. If you enter a crypto sale in our software, we'll automatically indicate (on your return) that you engaged in digital asset transactions.
When you can check "No"
You can choose no if your crypto activities in 2025 were limited to:
- Holding a digital asset in your own wallet or account.
- Transferring a digital asset between your own wallets or accounts.
- Purchasing digital assets using real currency, including purchases using real currency electronic platforms such as PayPal and Venmo.
- Engaging in a combination of holding, transferring, or purchasing digital assets as described above.
You must choose yes if your crypto activities in 2025 included any of the following:
- The receipt of digital assets as payment for goods or services provided.
- The receipt of digital assets as a result of a reward or award.
- The receipt of new digital assets as a result of mining and staking activities.
- The receipt of digital assets as a result of a hard fork.
- An exchange of digital assets for property, goods, or services.
- An exchange/trade of digital asset for another digital asset.
- A sale of a digital asset.
- Any other disposition of a financial interest in a digital asset.
