Cryptocurrency
Where you report the income from cryptocurrency depends on how you received it.
Investment: Menu Path: Income > Common Income > Investments and Savings (1099-INT/DIV/B/DA)
Mining: Menu Path: Income > Business / Rental Income > Business Income (Schedule C)
Mining as a Hobby: Menu Path: Income > Uncommon Income > Other Income
Wages: Menu Path: Income > Common Income > Wages (W-2)
General Reporting: Menu Path: Income > Cryptocurrency
If you enter a crypto sale in our software, we'll automatically indicate (on your return) that you engaged in digital asset transactions.
A digital asset, also known as cryptocurrency or altcoin, is a medium of exchange that only exists digitally. It has no centralized authority but uses a decentralized system to record transactions and relies on cryptography to prevent counterfeiting and fraudulent transactions. Examples of cryptocurrencies are Bitcoin, Dogecoin, and Ethereum, just to name a few.
Income paid in cryptocurrency or earned by buying, selling, or mining cryptocurrency is subject to taxation by the IRS. You can read the direction the IRS has given on IRS.gov .
Where you enter cryptocurrency income depends on how you earned the income.
Investment
If you held cryptocurrency for investment, it should be treated as a capital gain or loss.
Mining
If you mined cryptocurrency, earnings from this activity should be converted to U.S. dollars as of the date you receive it and be included as income. If you were self-employed for the cryptocurrency mining, the income needs to be reported as self-employment income.
Mining as a Hobby
If you mined cryptocurrency as a hobby, earnings from this activity should be converted to U.S. dollars and entered on the Other Sources of Income screen as digital asset income. You can't reduce your hobby earnings by any hobby expenses.
Wages
Wages paid in cryptocurrency should be converted to U.S. dollars on the date of each payment by your employer and reported on your Form W-2. The conversion to dollars should have already happened before you get your W-2.
Rewards
Rewards, sometimes called airdrops, are usually reported as digital asset income on the Other Sources of Income screen.
Other Income
Income paid to you in exchange for goods and services that wasn't wages (for example, you were paid for a service performed as part of your self-employed business in cryptocurrency) should be converted to U.S. dollars on the date of each payment and reported along with any other self-employment income.
Income that isn't self-employment income (e.g. forks or stakes) should be reported on the Other Sources of Income screen as digital asset income.
General Reporting
If you received, sold, sent, exchanged, or otherwise acquired any cryptocurrency during 2025, you'll also need to report it on Form 1040.
Note: The IRS has additional cryptocurrency reporting requirements.
For additional information see the FAQs on the IRS website .
Investment: Menu Path: Income > Common Income > Investments and Savings (1099-INT/DIV/B/DA)
Mining: Menu Path: Income > Business / Rental Income > Business Income (Schedule C)
Mining as a Hobby: Menu Path: Income > Uncommon Income > Other Income
Wages: Menu Path: Income > Common Income > Wages (W-2)
General Reporting: Menu Path: Income > Cryptocurrency
If you enter a crypto sale in our software, we'll automatically indicate (on your return) that you engaged in digital asset transactions.
A digital asset, also known as cryptocurrency or altcoin, is a medium of exchange that only exists digitally. It has no centralized authority but uses a decentralized system to record transactions and relies on cryptography to prevent counterfeiting and fraudulent transactions. Examples of cryptocurrencies are Bitcoin, Dogecoin, and Ethereum, just to name a few.
Income paid in cryptocurrency or earned by buying, selling, or mining cryptocurrency is subject to taxation by the IRS. You can read the direction the IRS has given on IRS.gov .
Where you enter cryptocurrency income depends on how you earned the income.
Investment
If you held cryptocurrency for investment, it should be treated as a capital gain or loss.
Mining
If you mined cryptocurrency, earnings from this activity should be converted to U.S. dollars as of the date you receive it and be included as income. If you were self-employed for the cryptocurrency mining, the income needs to be reported as self-employment income.
Mining as a Hobby
If you mined cryptocurrency as a hobby, earnings from this activity should be converted to U.S. dollars and entered on the Other Sources of Income screen as digital asset income. You can't reduce your hobby earnings by any hobby expenses.
Wages
Wages paid in cryptocurrency should be converted to U.S. dollars on the date of each payment by your employer and reported on your Form W-2. The conversion to dollars should have already happened before you get your W-2.
Rewards
Rewards, sometimes called airdrops, are usually reported as digital asset income on the Other Sources of Income screen.
Other Income
Income paid to you in exchange for goods and services that wasn't wages (for example, you were paid for a service performed as part of your self-employed business in cryptocurrency) should be converted to U.S. dollars on the date of each payment and reported along with any other self-employment income.
Income that isn't self-employment income (e.g. forks or stakes) should be reported on the Other Sources of Income screen as digital asset income.
General Reporting
If you received, sold, sent, exchanged, or otherwise acquired any cryptocurrency during 2025, you'll also need to report it on Form 1040.
Note: The IRS has additional cryptocurrency reporting requirements.
For additional information see the FAQs on the IRS website .
