FreeTaxUSA doesn't import crypto CSVs, but it does let you enter your crypto sales as summary totals and attach your Awaken Form 8949 as the supporting statement when you e-file. Awaken builds that 8949 for you, with the totals already added up, so you only have to type in a few numbers.
⚠️ Don't double-report
Enter your exchange 1099-DAs in Awaken, not in FreeTaxUSA.
Your Awaken 8949 already includes every sale from your 1099-DAs, with the correct cost basis filled in. If you also enter a 1099-DA in FreeTaxUSA, those sales get counted twice, and you could end up reporting far more gains than you actually had.
Phase 1: Get your forms from Awaken
Before you start, make sure your Awaken account is reconciled and you're happy with the numbers.
Step 1: Click Taxes in the left menu, then scroll to the bottom where it says Tax Forms.
Step 2: Upload the 1099-DA from each centralized exchange you used this year, then reconcile each one. This brings in the exchange's reported proceeds and swaps in your real cost basis from Awaken, so you don't pay tax on basis the exchange didn't have. If this is confusing, we have a video on how to upload and reconcile your 1099-DAs.
Step 3: On the Tax Bundle card, click Generate Bundle.
Step 4: Choose CPA / FreeTaxUSA / Direct File, then click Generate Tax Bundle for IRS.
Note: If any 1099-DAs still aren't reconciled, you'll see a checkbox to include them anyway. If you check it, Awaken assumes every sale on that exchange is on the 1099-DA and puts it in Box H/K. Before you file, check that the Box H/K proceeds match the proceeds on your 1099-DA. Reconciling is more accurate.
Step 5: We'll email you a ZIP file (check spam if you don't see it). It contains:
File | What it's for |
| Your Form 8949. The first pages are summary pages, one short-term and one long-term page for each checkbox pair (G/J, H/K, I/L), with every exchange and wallet already added together. These are the numbers you'll type into FreeTaxUSA. The full transaction list follows. Very large files are split into "Part N of M." |
| The same, but for futures/perpetuals (only included if you have any). |
| Schedule D. Use it to double-check FreeTaxUSA's totals. |
| Your crypto income (staking, airdrops, rewards, etc.). |
Phase 2: Enter your capital gains in FreeTaxUSA
Step 1: In FreeTaxUSA, go to Income → Common Income → Investments and Savings (1099-INT/DIV/B/DA).
Step 2: Add a new investment account and click Crypto, NFT Sales
Step 3: Call it Awaken and click next.
Step 4: click Enter it manually (don't worry, it isn't super manual).
Step 5: then click Summary.
Step 6: open up your Schedule D from the Awaken tax bundle export. There will be 4 important rows. In the top there will be H&I. And in the bottom K&J.
Awaken 8949 checkbox | Term | What it covers |
H / K | Short / Long | Sales on a 1099-DA where the exchange did not report your basis (most exchange sales this year) |
I / L | Short / Long | Sales that aren't on any 1099-DA (onchain wallets, DeFi, and so on) |
You will start with H. Click on the "H - Short-term basis not reported to IRS (uncovered)" first. And then copy the numbers from your Schedule D. In the example below, you'd have $1,266,218.75 as the proceeds and $1,226,692.62 as the basis.
If these numbers seem large, that is okay. Your proceeds is often much greater than how much money you actually made.
Click "Save and continue", and select "No" for the follow up questions on if you have adjustments or if there are Wash sales.
Then, repeat this for the remaining boxes of K, I, and L. If there are any $0 rows, you can skip those though. Most people will have to do this four times for each of the H, K, I, and L rows.
Step 7: Attach your 8949. Since you entered your sales as a summary, the IRS needs the detailed list of transactions. When FreeTaxUSA shows the screen for attaching a summary statement, upload irs_combined_8949.pdf (and irs_combined_8949_futures.pdf if you have one). It gets sent to the IRS with your e-file. This will be at the very end, after you pay.
Here is their guide on this: https://www.freetaxusa.com/answer/10243/How-can-I-attach-a-document-to-my-efiled-return/
If your 8949 was split into several parts, or FreeTaxUSA won't accept the file, choose to mail it instead: print the 8949 and mail it to the IRS with Form 8453, which FreeTaxUSA will generate for you.
Phase 3: Enter your crypto income
Staking rewards, airdrops, and other crypto income don't go in the investments section.
Step 1: Go to Income → Uncommon Income → Other Income.
Step 2: On the Other Sources of Income screen, add your income as digital asset income. Use the total from irs_schedule_1.pdf, and give it a description like "Crypto income – Awaken Tax report." You can also split it into separate entries (for example "ETH staking rewards" and "Airdrops") if you prefer.
Step 3 (only if you mine or earn crypto as a business): That income goes on Schedule C instead: Income → Business / Rental Income → Business Income (Schedule C).
FreeTaxUSA automatically answers the digital asset question on your Form 1040 once you've entered a crypto sale.
That's it
Your crypto sales and income are now on your return. Keep the full Awaken ZIP with your tax records.
Questions? Message us in the chat bubble at the bottom right. Or email team@awaken.tax.