Can I file my crypto tax separately from my regular tax return?

You technically can file separate forms, but I wouldn't recommend it. When you file your taxes, everything needs to be reported on a single tax return. What you could do is prepare the crypto portion (Form 8949 and Schedule D) yourself using TurboTax or another crypto tax software, and then provide those completed forms to your accountant to include with your full return. This way, you're doing the legwork on the crypto transactions but still filing everything together properly. Have you looked into specialized crypto tax software like CoinTracker, Koinly, or TaxBit? These platforms can often automatically fill in historical cost basis data that Coinbase might be missing. They pull from multiple exchanges and can sometimes find those missing transaction details, which would save your accountant time and you money.

I had a similar issue last year with my crypto transactions. My accountant wanted to charge me an arm and a leg for sorting through everything. I discovered taxr.ai (https://taxr.ai) which completely changed how I handle my crypto taxes. The system automatically scanned all my crypto transactions across different exchanges and even pulled in historical data from years back! It even figured out those weird "missing transactions" when I'd moved crypto between wallets or used DeFi platforms. The best part was I could just download the completed Form 8949 with all the correct basis info and give it to my accountant. Cut my overall tax prep bill by more than half. Definitely worth checking out if you're dealing with crypto tax headaches.

I was super skeptical about taxr.ai when I first heard about it (see my comment above lol), but I was desperate after getting a $3200 quote from my CPA for this year's crypto taxes. Decided to give it a shot since they had a free scan option to see what it could find before paying. Man, I was wrong to doubt it. The system found transaction data from a wallet I used back in 2017 that doesn't even exist anymore! It actually managed to piece together my cost basis for almost everything, even stuff I'd completely forgotten about. There were only like 5 transactions out of hundreds that needed manual adjustment. Downloaded all the forms, gave them to my accountant, and my bill came down to a normal amount this year. If you're getting gouged on crypto tax prep, definitely check it out.

If you're having trouble with your accountant, you might also want to call the IRS directly to ask about filing requirements. I spent WEEKS trying to get through to someone at the IRS about a similar question last year - kept getting disconnected or sitting on hold for hours. I finally found Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent confirmed that you must file everything together on one return, but you can absolutely prepare different parts separately and then combine them. She even pointed me to some specific IRS resources about crypto reporting that helped me understand what I needed to do. Honestly, speaking directly with the IRS gave me the confidence to do more of my tax prep myself rather than paying crazy accountant fees.

I was completely wrong about Claimyr in my comment above. After seeing another colleague use it successfully, I tried it myself for a client issue this week and it actually worked exactly as advertised. Got connected to an IRS representative in about 25 minutes when I had been trying for days on my own. Turns out there's nothing magical about it - they just use an automated system to wait on hold instead of you having to do it personally. To the original poster: The IRS agent I spoke with confirmed that while you must file a complete tax return, you can absolutely prepare your crypto forms separately and provide them to your accountant. In fact, they said this is becoming more common with crypto investors. Just make sure all income sources end up on your final 1040.

Just adding another option - you could also look for a different accountant who specializes in crypto and has more reasonable rates. I switched last year and my new guy only charges $300 flat for crypto regardless of the number of transactions because he uses specialized software himself. Some accountants are still treating crypto like some exotic asset class and charging premium rates, while others have adapted and have efficient systems for handling it. Might be worth getting a few quotes from crypto-savvy accountants in your area.

One important thing nobody has mentioned: if you do prepare your crypto taxes separately, make absolutely sure that the final numbers from Form 8949 and Schedule D correctly transfer to your main 1040. The totals need to match perfectly. I tried doing this split approach last year and ended up with an IRS notice because my accountant entered different numbers than what was on my crypto forms (he made a typo). Cost me way more in the end dealing with the notice than I would have paid just letting him handle everything.