How To Add Form 8949 In TurboTax? Do I Need To Fill It Out?

When someone exchanges or sells capital assets, like artwork, stocks, and land, they have to report these transactions on their federal income tax return. If you want to do this, you must fill out “Form 8949: Sales and Other Dispositions of Capital Assets.”

Now, your sale can either be a gain or a loss. In addition, your transactions might be short-term or long-term. Well, whatever it may be, this information is still required to determine the proper tax treatment for your net results.

TurboTax makes it easier for you to fill out form 8949. So, let’s learn how to add form 8949 in TurboTax and whether you need to fill it out manually.

Table of Contents

What And Where Is Form 8949 In TurboTax?

Form 8949, as already mentioned, refers to Sales and Other Dispositions of Capital Assets. The form records the details of the capital asset exchanges or sales. In addition, Part I of Form 8949 displays the short-term transactions, i.e., held for less than one year. Meanwhile, Part II of this form displays the long-term transactions.

Suppose you enter capital asset exchanges or sales from Form 1099-S or 1099-B in TurboTax. In that case, TurboTax will automatically fill your Form 8949 and transfer the details to Schedule D. So, because of this feature, you’ll not need to fill out your Form 8949.

How To Add Form 8949 In TurboTax? Uploading The 8949 To TurboTax Online

After you download your Form 8949, you can use TurboTax to upload the file and add that form to the tax filing.

Once the initial TurboTax details set-up is done, the following page will appear on your screen.

Firstly, head to the “Federal” tax filing section.
Then, select the “Wages & Income” tab.
Next, tap “Add more income” under the primary income items.
By selecting that button, you’ll be able to bring up your long list.
Now, scroll down from “Wages & Incomes.”
Head to “Investments and Savings.”
From there, click the “Show More” drop-down.

Then, tap the “Start” or “Revisit” button right next to “Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).”

An investment sales summary page may appear on your screen if you’ve previously typed in any information in this particular section.
So, you can tap on “Add investments” right below this section to enter any additional file.
However, if there is no already entered information, you’ll be directed to a section known as “Time to kick off your investments!”
Now, tap on the “Okay!” button.

Or, after this, you can click the “Add Investments” button.

Then, hit the “Continue” button.

Next, choose “Enter a different way.”

After that, click on “Cryptocurrency.” Then, hit “Continue.”

Now, once you’re on the next page, select “Upload it from my computer.” Then, hit “Continue.”

When on this page, tap the drop-down under the “Crypto Service” text. Then, select the crypto services you used.
Now, in the name section, type in the name of the exchange you’re importing.

Next, tap on “Browse.” Then, choose the file you’re importing. For every user, only one import exchange at a single time is allowed.
After this, you’ll be directed to the page containing the investment sales summary. Get the summary of the files already imported through this page.
Also, click “Add investments” if you need to import additional files.

However, if you’ve imported all the Form 8949 files, this will be all you need to do for the filing process. Turbotax requires users to verify all the digital asset disposal imported with a CSV. Because of this, you may need to take additional steps when you’re finally ready to finish the filling while in the “Review” phase.

Asked To Review My Cryptocurrency Transactions? What’s Next?

So, with this, you’re done with adding information to your Form 8949 in the TurboTax account. After this, you’ll experience the review phase. Under the review phase, your TurboTax account will notify you that you must review all your transactions reported via 8949. In addition, you’ll need to answer about where you obtained these assets.

Well, this information is undoubtedly unnecessary, and you can’t even transmit these details to the IRS with Form 8949. In addition, TurboTax doesn’t offer any way to import such data in a CSV format. So, for this reason, you are recommended to ignore this suggestion by TurboTax about reviewing each of your transactions. You can continue with the next steps after ignoring this request. Scroll down to the bottom list to continue your filing process.

How To Report On Form 8949 In TurboTax?

Your TurboTax account automatically generates Form 8949 once you are done reporting the sale or disposition of capital assets. So, considering an example, when you type in the stock sales reported on your Form 1099-B, your TurboTax account automatically generates the 8949.

Here are the steps to enter Form 1099-B in TurboTax Online:

Firstly, open the return in TurboTax Online.
Then, tap the drop-down arrow right next to “Tax Tools”, which will be on your lower left screen.
Next, click on “Tools.”
After that, from the pop-up window, click “Topic Search.”
Now, in the “I’m looking for box” section, enter 1099-b.
When in the results box, mention 1099-b. Then, hit “Go.”
Once you do this, you’ll be directed to the “Did you sell any investments in 2016?” page. Tap “Yes.”
Now, make sure to follow the onscreen instructions.
Finally, you can enter the 1099-B details yourself, or you can import them.

How To Report Ordinary Crypto Income With TurboTax?

The above mentioned steps can help you report your capital losses and gains. However, if you’ve used other ways to earn your cryptocurrency income, in that case, you’ll have to report your earnings separately.

For now, TurboTax has no features supporting direct reports of mining, staking, and other crypto income types. So, to report ordinary crypto income with TurboTax, you may need to take the help of some other tax or crypto software.

Do You Need To Fill Out Or Mail Form 8949 In TurboTax?

Till now, we have discussed how to add Form 8949 in TurboTax and how to report on Form 8949 in TurboTax. But you may still have a question about whether you must fill out or mail Form 8949. Well, you don’t have to fill out your Form 8949 manually. This is because TurboTax has the feature to automatically fill out the form when someone types in their investment exchanges or sales.

Also, in case you are paper-filing the return, know that Form 8949 will be included with all the other tax forms when you print out the forms. On the other hand, if you are e-filing, you must mail one copy of the 8949 to the IRS. You need to do this if you have typed in “sales section total” for a single or more than one sales category. In addition, you need to send a copy to the IRS if any one of the following is true:

The box D or box A summary consist of adjustments.
The sales category for a single or more than one summary is something other than box D or box A.

Furthermore, if you need to mail forms 8453 and 8949, send them within three days when the IRS accepts the e-file.

Conclusion

Form 8949 TurboTax records the information of your capital asset, a.k.a. Investment sales or exchanges. So, now that you know how to add form 8949 in TurboTax make sure to use it to save a significant amount on taxes.

MWJ Consultancy helps you make your TurboTax software journey smoother. Our technicians are available 24/7 to support you with any errors you face while using this taxing software. So, for any queries related to TurboTax support, call us at +1 877 469 0298

Or send your request to info@mwjconsultancy.com. Visit our website to know more.