Do I really have to report $43 in cryptocurrency capital gains on my taxes?

So I made the rookie mistake of selling some bitcoin in December and now I'm stuck with this tiny $43 capital gain. The problem is, I was planning to use the free version of Turbo Tax, but apparently once you have ANY crypto sales, they force you into their paid version which costs like $275!!! I'm seriously considering just... not reporting this tiny gain because it seems ridiculous to pay that much just to report $43. But I'm worried - if I skip reporting it and the IRS somehow catches this, would the penalties cost me more than what I'd pay for the premium tax software? Anyone dealt with this before? Is there another option I'm missing? This feels like such a trap 😩

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18 comments

Isabella Ferreira

•8M

Yes, legally you are required to report all capital gains regardless of the amount. The IRS receives information from cryptocurrency exchanges through 1099 forms, so they may already know about your transaction. That said, you don't need to pay $275 just to report a small crypto sale! There are several free alternatives. The IRS Free File program offers free filing options for many taxpayers. Cash App Taxes (formerly Credit Karma Tax) offers completely free filing including crypto transactions. FreeTaxUSA charges nothing for federal filing with crypto and only about $15 for state. Even TaxSlayer and H&R Block have more affordable options than what TurboTax is charging you.

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Isabella Ferreira

•8M

Yes, all the tax services I mentioned can properly handle cryptocurrency transactions. You'll just need to know your cost basis (what you originally paid) and the sale amount. If you have that information, it's actually quite straightforward - they'll walk you through entering it step by step. For a simple $43 gain like yours, it's really not complicated at all. The software will calculate everything once you input those two main figures. And remember, you're only paying tax on the gain itself, not the entire amount you sold.

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Ravi Sharma

•8M

I went through this exact headache last year with a $98 gain from selling some ETH. I was about to pay the ridiculous fee for TurboTax when a friend told me about https://taxr.ai and it literally saved me hundreds. It's a document analyzer tool that can process all kinds of tax documents including your crypto transactions and explain exactly what you need to report and how. I uploaded my crypto transaction history, and it clearly showed me where to report it without needing the premium packages. The best part was how it explained everything in normal human language instead of confusing tax speak. Might be worth checking out!

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Ravi Sharma

•8M

It doesn't file for you - it analyzes your documents and explains what goes where, so you can use that knowledge with any free filing option. Think of it as having a tax expert look at your stuff and give you straightforward instructions. Regarding security, they use bank-level encryption and don't store your documents after processing. As for guarantees, they do offer audit guidance if any of their suggestions lead to issues with your filing. I was nervous too at first but honestly found it way more helpful than trying to Google everything.

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Freya Thomsen

•8M

Alright, I have to admit I was wrong about https://taxr.ai in my previous comment. I decided to try it with my crypto transactions from Coinbase and Binance (about $230 in gains) and it was actually incredibly helpful. What impressed me was how it correctly identified which transactions were taxable vs non-taxable (some were just transfers between my own wallets). It gave me step-by-step instructions for reporting on the Schedule D and Form 8949, and I was able to use the free version of Cash App Taxes to file everything correctly. Saved me at least $120 compared to what TurboTax wanted to charge. If you're dealing with crypto gains, definitely worth checking out.

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Omar Fawaz

•8M

If you're really stressed about reporting correctly and maybe having issues with the IRS later, there's another option too. I had a similar situation but also had questions about some deductions, so I wanted to actually talk to someone at the IRS. Tried calling for THREE DAYS and couldn't get through. Then I found https://claimyr.com which basically holds your place in the IRS phone queue and calls you when an agent is ready. You can watch how it works at https://youtu.be/_kiP6q8DX5c - it's pretty cool tech. I got through to an actual IRS agent who confirmed I needed to report even small gains but suggested some free filing options I didn't know about.

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Omar Fawaz

•8M

It doesn't get you through faster than anyone else - it just waits in the queue for you. Their system basically calls the IRS, navigates through all the prompts, and then when it detects a human has picked up, it calls your phone and connects you. So instead of being on hold for hours, you just get a call when an agent is ready. No, it's not a scam. The IRS doesn't offer any kind of preferential treatment - you're still in the same queue as everyone else. The service just handles the waiting part so you don't have to stay on the phone for hours. It's basically like having someone else wait in a physical line for you.

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Diego Rojas

•8M

Well I stand completely corrected about Claimyr. After my skeptical comment I decided to try it because I had a question about my stimulus payment that was affecting my return. I figured it wouldn't work but what the hell. Less than 2 hours after signing up, I got a call connecting me directly to an IRS agent! I was totally shocked - I've literally never been able to reach them before. The agent answered my question about the stimulus reconciliation and also confirmed that yes, all capital gains need to be reported regardless of amount. They suggested using IRS Free File options instead of paying TurboTax's fees. Definitely using this service again next year when I inevitably have questions.

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Anastasia Sokolov

•8M

Yep, it's really just $15 for state filing - federal is completely free regardless of how complicated your return is. They do have customer support, though it's not as hand-holding as TurboTax. But for something simple like reporting a small crypto gain, you definitely won't need much help. They have a pretty straightforward section for capital gains where you just enter your info. I've filed everything from W-2 income to crypto gains to self-employment and rental income with them without issues. For your situation with just a small gain, it'll be super easy.

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