9 Best Crypto Tax Software for 2022
Updated: June 27,2022
The future of most cryptocurrencies is unknown. What’s certain is that they are or will be taxable one way or another.
The question is, how much should you give to the government? To answer this, we’ll cover the following points:
- Overviews of the best crypto tax software products on the market.
- Factors to consider when comparing crypto tax calculators.
- Straightforward answers to your pressing questions about crypto taxation.
Best Crypto Tax Software on 2022
- •TokenTax - Best for investors and traders from non–Western countries
- •Cointelli - Best for beginners
- •CoinLedger - Best for long-time investors and traders
- •Koinly - Best for obscure altcoin investors and traders
Accointing - Best for tax-optimized trading insights
- •ZenLedger - Best for investors and traders who want to outsource crypto tax preparation
- •TaxBit - Best for enterprises of all types
- •BearTax - Best for high-frequency crypto traders and bots
- •CryptoTaxCalculator - Best for accountants
Support for all exchanges
Available in all jurisdictions
Personalized crypto accountant support
TokenTax can read data from all exchanges, including margin ones, as well as DeFi protocols and NFT marketplaces. Thus far, 85 API integrations define its crypto tax tracking capability.
When it comes to jurisdiction, TokenTax can crunch your numbers regardless of the tax agency you answer to. More importantly, it provides results in your native fiat currency.
If you reside in the United States, TokenTax can automatically fill out your IRS Form 8949. You can revise your document without worry and seamlessly import your file to TurboTax or TaxAct.
If you need to file the FBAR with the FinCEN, this cryptocurrency tax software can also help.
TokenTax can create the report you need to show the highest yearly balance for the international crypto exchanges you’ve used. Costing just $49, this doc also reveals your daily balances per exchange in USD.
Furthermore, TokenTax can do cryptocurrency mining and income tax, international gain/loss, and audit trail reports.
To view different calculations and discover more favorable tax scenarios, you can switch between FIFO and LIFO. If you live in Canada or the United Kingdom, you’ll have the average cost method at your disposal, too.
Thanks to TokenTax’s tax-loss harvesting dashboard, you can learn about your unrealized losses. This way, you’ll be able to carry out strategic sell-offs to reduce your taxes.
If you aren’t ready to commit to a purchase, you can go with TokenTax’s free crypto tax software trial. Payment is only required when you need to generate a tax form.
TokenTax uses tiered pricing. In a nutshell, here are your options:
- Basic: $65/year (up to 500 transactions)
- Premium: $199/year (5,000 transactions)
- Pro: $799/year (20,000 transactions)
- VIP: $2,499/year (30,000 transactions)
If you sign up for multiple years, you can save 10%.
If you happen to need a higher transaction count, you can pay an additional $199 for 20,000 more.
Getting the VIP treatment from this particular cryptocurrency accounting software brand can be expensive. One thing that should be valued is the live chat assistance; you’ll also receive personalized support.
TokenTax’s top-tier plan includes hands-on crypto reconciliation, IRS audit assistance, and two 30-minute sessions with a tax expert. You can even ask its team to file your entire tax return for a fee - starting at $999.
Hundreds of supported technologies
Multiple import options
Flat rate for up to 100,000 transactions
Cointelli is the best bitcoin and altcoin tax software for beginners on many levels.
When it comes to data ingestion, this cloud-based app is directly integratable with 110 platforms. It can facilitate seamless import of crypto data from popular wallets, exchanges, blockchains, and more.
In addition, Cointelli can aggregate all types of transactions, including staking, DeFi, and NFTs, from 600+ other technologies. To enter your data manually, you have three options:
- Upload a CSV file
- Edit Cointelli’s templates
- Fill out its form
To ease the cumbersome process of data consolidation, you can quickly consult its text-based and/or video guides. These instructions aren’t generic, so they can help you every step of the way whatever platform is in question.
By default, Cointelli calculates net capital gains and estimated tax savings using the FIFO accounting method to appease the IRS. But you can switch to LIFO or HIFO.
If you find any mistakes in your transactions, you can immediately fix them. But this app is engineered to auto-correct errors. So, tax reports are going to be accurate.
In terms of report generation, Cointelli can produce all of the forms required by TurboTax Desktop/Online and TaxAct.
At the moment, it supports the following documents:
- Form 8949
- Schedule D (Form 1040)
- Ordinary Income Report
- Audit Trail Report
- Gift/Donation Report
The Cointelli team keeps an ear to the ground. So, expect this app to offer more doc types when changes in the regulatory environment call for them.
You can use this crypto tax software for free until you need to export a copy of your report. With a flat rate of $49/tax year, you can generate comprehensive paperwork consisting of up to 100,000 transactions.
If you need to go beyond this cap, you can sign up with Cointelli’s custom Enterprise plan and get a quote.
If you have an accountant, you can invite your tax professional to review it. The software will email you a password, which your accountant will need in order to access your crypto tax report.
To protect your account, Cointelli uses Sign-In Security and Multi-Factor Authentication to keep fraudsters at bay.
As the best tax software for crypto built by CPAs, it naturally serves the needs of accountants too. Cointelli is suitable for those with zero experience in cryptocurrency. So, you can just jump in with both feet and begin assisting crypto clients.
You can use it for free to import and review your taxes. If you want to take advantage of all its features, the crypto tax software will cost you $49/tax year.
Cointelli also uses a pay-as-you-go pricing model for accountants. It has no minimum credit purchase requirements, nor does it impose credit expiration. And the more credits you buy, the less each one costs.
Check out these rates:
- 1–9 credits: $49/credit
- 10–19 credits: $47/credit
- 20–49 credits: $44/credit
- 50+ credits: $39/credit
In case you encounter any trouble with this crypto tax tool, you can reach out to Cointelli’s help desk. You can get in touch with them via live chat or email, but not through phone. The team is active on social media, particularly on Facebook, Twitter, Instagram, LinkedIn, and YouTube.
Plus, you can binge on insightful resources to master the software and answer your most pressing questions on your own. The Cointelli team publishes a yearly crypto tax guide and maintains a knowledge base consisting of Help Center and Blog. Additionally, you can count on 24/7 customer service from trained tax advisors.
On the downside, Cointelli’s 100% money-back guarantee is questionable. According to its Terms of Service, the company generally doesn’t grant refunds.
Primarily, it serves US taxpayers only. That said, you can still benefit from it even if you don’t report your tax liabilities to the IRS. Until it becomes widely available outside of the States, most crypto users can’t enjoy it at its best.
Compatibility with many tax preparation apps
Multi-tax-year forms in one purchase
14-day refund policy
CoinLedger recognizes 10,000+ digital assets from all crypto platforms, including DeFi services. Plus, you can import your data through 43 API integrations or CSV uploads.
This altcoin and Bitcoin tax software provider specializes in the tax rules of both the US and Australia. In any case, you can still use it if you live elsewhere and choose your local currency.
You can choose from FIFO, LIFO, and HIFO accounting methods. This lets you see more than one version of your gains and losses in your local currency.
This crypto taxes app can immediately locate reconciliation errors and track your liabilities for the year. This lets you correct as many inaccuracies as possible before filling in your IRS Form 8949 with your crypto transactions.
After finishing your tax return, you can send it to your accountant or import it into your preferred tax-filing solution. CoinLedger is compatible with a slew of them, including TurboTax, UltraTax, ProConnect, and TaxAct.
It can do income, capital gains, audit trail, short- and long-term sales, international gain/loss, and end-of-year positions reports. A tax-loss harvesting tool is part of this app’s arsenal too.
At the end of the day, CoinLedger is a freemium crypto tax service.
What’s free is the ability to upload your data, make revisions, and preview your capital gains and losses. What’s not is the full view of the report and the option to export it.
The beauty of CoinLedger is that you don’t have to deal with tiered pricing. All features are available across all of its four plans. You can access all reports from 2010 to 2021 with a single purchase per tax season.
- Hobbyist: $49 (a total of 100 transactions)
- Day Trader: $99 (1,500 transactions)
- High Volume: $199 (5,000 transactions)
- Unlimited: $299 (unlimited transactions)
All plans come with a 14-day money-back guarantee.
If you’re an accountant, you can use CoinLedger to manage your crypto clients. You can invite them to use cryptocurrency accounting software to import their trades and incomes.
Overall, CoinLedger is a solid app. It’s a shame that it fell victim to a data breach in 2020, resulting in 1,082 stolen email addresses.
If you have any problem or concern as a user, you can utilize CoinLedger’s live chat reps.
Support for 17,000+ crypto assets
Multiple accounting methods
Specialized tax reports
Koinly can automatically aggregate crypto deposits, withdrawals, and trades from 473+ technologies. They include margin and futures exchanges and DeFi solutions.
To calculate how much you’ve made or lost, you have various accounting methods with wash-sale rules at your disposal. Other than FIFO, LIFO, and HIFO, Average Cost, “Highest Cost, Lowest Cost,” and Shared Pooling may also be some of your options.
Koinly is possibly the best crypto portfolio and tax tracker in the business. It can monitor 17,000+ cryptocurrencies and automatically consolidate your transactions into one place via API integrations. You’re also given the option to upload CSV files too.
Likewise, Koinly can illustrate the growth and decline of your holdings over time. It can also track your total invested funds in fiat, actual returns, and tax liabilities. On top of that, it can keep an eye on your realized and unrealized gains.
With Koinly’s filters, reviewing your transactions and sorting them by gains to see which ones have performed best becomes extremely easy. You can even segregate your cost basis per wallet or lump it into one universal pool.
Their solution gives you access to over six years’ worth of historical spot prices to ensure correct costs.
If you earn crypto income, this crypto mining tax software can help you provide an overview of the different types.
Aside from that, this app automatically verifies your wallets’ contents so that all transfers are accurate.
To preserve the integrity of your records, it ignores duplicate transactions and flags missing or incorrect transfers. In the event of negative balances, you can count on Koinly to alert you about them.
Lastly, its double-entry ledger system makes it easy to fix issues since an entry backs every asset balance change.
Price-wise, Koinly is a free crypto taxes app until you’re ready to generate your docs.
It can assist crypto users in 249 jurisdictions and display prices in 36 fiat currencies. However, it can only provide specialized tax reports for a few countries, specifically Western ones.
To import your tax papers into TaxAct, TurboTax, H&R, or other similar solutions, the plans you can choose from are as follows:
- Newbie: $49/year (limited to 100 transactions)
- Hodler: $99/year (1,000 transactions)
- Trader: $179/year (3,000 transactions)
- Pro: $279/year (10,000 transactions)
Apart from email support, the Pro plan gives you the option to go over the transaction limit. The fee is $10 per 1,000 extra credits.
Koinly’s add-ons include tax reports for a second country for $49 and an expert review for $799.
If you want your money back, you can always ask for a refund. This top crypto tax software provider demands that you haven’t downloaded any tax forms or CSV files to be eligible.
Generate reports in five minutes
Supports all major exchanges
Free to try
Accointing is one of the best crypto tax tracker tools on the web. It monitors your entire portfolio and makes it easy to file crypto taxes, regardless of your method. You can even access specialist tax advisors to make sure you get it right.
Your first port of call is its powerful crypto tracker, which covers over 300 exchanges and wallets. This lets you import all your transactions and key data automatically once connected. Exchanges it supports include:
This brings your portfolio under one intuitive dashboard, which you access via a browser or mobile apps for Android and iOS.
In addition, it gives you important insights into your trading performance. The home summary displays real-time transaction dates, net profit, gains, and more. Dig deeper to track gains over time, find the most popular tokens, and refine your strategy. You can even compare your performance with other Accointing users and monitor the markets themselves, setting up price change alerts and analyzing historic data.
Whatever feature you use, its graphs and charts look great on any device!
Accompanying the tracker is a Trading Tax Optimizer (TTO). It’s one thing to file your taxes after the fact, it’s another to trade based on what your taxes will be. Using its automatic inbuilt calculator, you can aim to reduce taxable income, increase taxable income, or harvest your losses. Set a goal like this and you know exactly when to buy and sell.
It props all of this up with one of the best crypto tax calculator solutions in the US. Whether you focus on BTC, Ethereum, Dogecoin, or other. it generates accurate tax reports.
Firstly, use the review tool to automatically classify your transactions. This applies to everything from DeFi staking and margin trading, to NFTs and mining. Then, create reports in just five clicks, taking no longer than five minutes. Reports include:
- Full tax report
- Form 8949 (for Schedule D)
- TurboTax file for online
- Transaction CSV for exporting
- Daily balance report
Accointing also integrates with most of the popular tax filing software, so you can export the data and be a bit more hands on. Likewise, you can easily import trading data going back many years to pad out your insights.
On the other hand, if you’re not so savvy, utilize its crypto tax advisor network, which includes Arbitus, CryptoTax Audit, and Mercer Street. Self-learning is also an option via its 101 guide.
This runs through everything from cryptocurrency basics, how it's taxed, and how to use its platform specifically. Furthermore, the help section includes videos and other tutorials to get you up to speed.
You can sign up and start tracking your portfolio for tax purposes for free. You only pay to produce the reports for filing based on volume. To get a proper taste, you can even file 25 transactions entirely for free, with no credit card required.
Paid plans include:
- Hobbyist: $79/year, for 500 taxable transactions.
- Trader: $199/year, for 5,000 taxable transactions.
- Pro: $299/year, for 50,000 taxable transactions.
Every plan has a 30-day money-back guarantee.
If you need to contact support staff, there’s a live chat button at the bottom of every page.
Overall, Accointing is some of the best software for crypto taxes. It's easy to get started, it has many extra features, and its team of accounting experts ensure the tax code is up to date.
Free tax form generation
Grand Unified Accounting
One-year refund policy
ZenLedger is directly linkable to 400+ exchanges, 40+ blockchains, and 30+ DeFi protocols. Plus, it integrates with TurboTax and can handle NFTs.
ZenLedger can fetch your transactions from exchanges and desktop, mobile, and hardware wallets via API or CSV. Also, you can import data by uploading custom CSV files. It lets you manually enter your purchases, sales, and trades, too.
In manual entries, you can label the incoming and outgoing transactions. That’s why you can clearly specify the ways on how you received or parted ways with your assets, including:
- Staking rewards
- Initial coin offering (ICO) purchases
Moreover, this crypto mining tax software uses FIFO, LIFO, and HIFO methods to paint different gain-loss scenarios.
Plus, it can generate completed IRS docs, including forms 1040 (Schedule 1 and Schedule D) and 8949.
How many transactions are possible with ZenLedger?
Three of its four DIY plans come with limits. ZenLedger’s Free, Starter, and Premium packages have maximums of 25, 100, and 500 transactions, respectively. The Executive plan has no transaction cap.
Outside of the transaction limits, ZenLedger’s self-prepared plans are practically the same. They all include:
- Access to all integrations
- Detailed reports
- FinCEN/FBAR alerts
- A one-year money-back guarantee
The only exception is DeFi, staking, and NFT support, which is exclusive to the Premium and Executive packages only.
In addition, you’ll get to enjoy the app’s crypto tax-loss harvesting and grand unified accounting tools. The latter consolidates 100% of your imported transactions and includes your calculated tax in one spreadsheet.
ZenLedger is easily considered one of the best free crypto tax software products out there. But how much will its paid DIY plans set you back per tax year?
Here are the annual fees:
- Starter: $49
- Premium: $149
- Executive: $399
If you pay for multiple years, you can save 20% on your bill. If you aren’t sure which product to purchase, you can consult ZenLedger for $150 an hour.
To review your paperwork properly, invite your tax professional to this altcoin and Bitcoin accounting software at no extra charge.
This provider of crypto tax services has joined forces with the Andrew Gordon Law Group. That’s why you can securely consult or entrust everything (including your DeFi- and NFT-related transactions) to a legit tax crypto attorney.
Here are your options:
- 30-minute consultation: $195
- 1-Year Tax Report: starting at $2,500/year
- 2-Year Tax Report: starting at $4,500/year.
In terms of customer support, the company has live chat and phone representatives. However, its help desk is only available from 9 AM to 9 PM EST, 7 days a week.
Unlimited transactions across the board
Free tax form generation
Prediction of tax impact on trades
As an individual, TaxBit can help you report your current-year crypto taxes to the authorities at no cost. That’s why it’s probably the best free crypto tax software you will find.
Using this solution, you can import and track your activity across 500+ platforms. There’s no transaction cap to worry about, so it can be incredibly cost-saving if you do large trade volumes.
But here’s the catch:
You can only generate your completed Form 8949 and income reports for free if you exclusively use TaxBit Network Companies. Coinbase, Binance.US, Gemini, FTX.US, and BlockFi are just a few of them.
Otherwise, you have to sign up for a premium plan to include your trades on unsupported platforms. The same goes when you wish to download your historical tax forms, even if you only use TaxBit’s network.
Like other crypto tax tracking apps, TaxBit can monitor your entire portfolio’s real-time performance and has tax-loss harvesting capability.
What sets TaxBit apart from the rest is its ability to provide reliable recommendations. It can tell you the tax impact of a transaction before you pull the trigger on it. Undoubtedly, it can aid your decision-making and help you take calculated risks.
TaxBit offers commendable customer service too. It delivers live chat assistance and dedicated concierge support for CSV files. Plus, it can connect you to a CPA to review your tax forms so that you can withstand a potential IRS audit.
The said crypto tax services are available only if you sign up for a premium package. Nevertheless, you can still enjoy email support with the free Network plan.
TaxBit uses a tiered pricing model, so each package has its own set of features. The prices of its plans are as follows:
- Basic: $50
- Plus+: $175
- Pro: $500
In addition to its original form, TaxBit now has enterprise tax and enterprise accounting editions.
Due to space constraints, the unique capabilities of TaxBit Enterprise are outside the scope of this crypto tax software review. Although it means that the CPAs, attorneys, and fintech experts comprising TaxBit can now be an extension of your team.
Curated Historical Pricing
24/7 live support
BearTax can pull in raw data from all exchanges and be natively compatible with 46 exchanges plus TurboTax and TaxAct. You can send your transactions into BearTax through API and CSV file uploads. It determines how much you owe using FIFO and LIFO methods.
Furthermore, it auto-generates tax documents like IRS forms 8949 and 1040 pre-populated with the needed information. What’s more, it can produce short- and long-term sales and audit trail reports.
Aside from the essentials, BearTax boasts a decent set of capabilities.
The first is Income Classification. This feature identifies your incoming transaction across exchanges. BearTax uses 11 categories to correctly classify the sources of your assets to report them accordingly.
Next is Smart Matching. This crypto accounting software can help reduce what you owe to your tax authority by identifying and excluding non-taxable events. Regardless of block time delays and fees, its algorithm matches transfers between exchanges and between exchanges and wallets.
Calculating the right cost basis for every single transaction is automatic on BearTax. But when it can’t find the appropriate withdrawal for a deposit, it flags it for review.
The real differentiator for BearTax is its Curated Historical Pricing. With this functionality, you can assign the transaction’s cost basis based on date and time, not on daily averages.
As far as plans go, BearTax offers four premium packages for investors and traders. The company uses tiered pricing, so you get more as you level up.
Despite this, BearTax was the cheapest crypto tax software solution among the heavyweights that we assessed. Have a look at its annual and biennial pricing per plan:
- Annual: $10
- Biennial: $20
- Annual: $45
- Biennial: $80
- Annual: $85
- Biennial: $150
- Annual: $200
- Biennial: $350
Technically, the sky's the limit to BearTax’s data ingestion capability, which is perfect for high-frequency traders and bots.
However, all plans have a cap. The maximums for Basic, Intermediate, Expert, and Professional are 25, 200, 1,000, and 25,000 transactions, respectively. If you need to import more than 25,000 trades, you’ll have to request a custom quote.
With the top-tier plan, you can arrange a session with a crypto tax expert to address your questions. It’s a relief to know that you can find answers in BearTax’s blog, FAQ, and their 24/7 email and chat support reps.
When you use this crypto tax software, you can preview your gains and losses for free.
As an accountant, you can keep your clients’ tax documents in order. You can manage them without asking for their credentials and/or private keys.
BearTax’s plans for CPAs can be expensive, though. Have a look:
- Basic: $2,000/year (up to 5 clients)
- Standard: $4,200/seat (10 clients)
- Premium: $8,000/seat (20 clients)
To register on BearTax, you need to be a citizen of Australia, Austria, Canada, India, Japan, the UK, or the US.
30-day free preview
30-day refund policy
CryptoTaxCalculator natively supports 400+ platforms and is optimized for DeFi transactions and NFTs. With such a high number of direct API integrations, it can offer the best way to track crypto for taxes.
CryptoTaxCalculator can determine your gains and losses from different transactions and activities using calculation methods like FIFO and HIFO. It can take airdrops, mining, staking, leveraged trading, gas fees, and more into account too.
With CryptoTaxCalculator, you can migrate your data from an unlimited number of major centralized and decentralized exchanges. It’s easy for you to use a multitude of data import options, including API integrations, CSV uploads, and public wallet sync.
Not only that, this crypto accounting software company serves customers in 21 jurisdictions. It can generate tax reports for all financial years. Forms 8949 and 1041 S1 and income and capital gains reports are standard documents it creates.
To keep you from paying more than you should, CryptoTaxCalculator does tax breakdown analysis. To assist with this, it throws in a portfolio tracking feature as a bonus.
To avoid errors, it gives warnings about missing prices, uncategorized transactions, and negative balances. With this app, it’s possible to review your transactions using advanced filters and edit incorrect ones in bulk.
At the time of writing this crypto tax software review, CryptoTaxCalculator is available for trial use for 30 days. However, to get your final financial year report, you have to buy any of the following personal plans:
- Rookie: $49/year (a max of 100 transactions)
- Hobbyist: $99/year (2,500 transactions)
- Investor: $189/year (10,000 transactions)
- Trader: $299/year (100,000 transactions)
CryptoTaxCalculator is the best crypto accounting software for self-employed tax professionals. Its Accountant Suite costs $499 a year and includes up to 10 client accounts and 100,000 transactions. To increase the number of manageable accounts, it costs an extra $50 per year for each additional client.
All CryptoTaxCalculator plans are fully refundable within 30 days.
If you have any questions or concerns, you can chat with CryptoTaxCalculator's team and expect a reply within 24 hours.
How To Choose the Right Crypto Tax Software
Selecting the most suitable crypto tax app for you isn’t as challenging as finding the next 100x altcoin.
Nevertheless, you have to be cautious about your options because some of them may not apply to your situation. The wrong app can put you at risk of tax evasion, defeating the purpose of using one to begin with.
To determine whether a crypto tax app is worth considering, pay attention to the following factors:
By and large, crypto data aggregators can fetch transactions from all sources.
If your chosen program doesn’t natively support the platforms you use, it should accept CSV file uploads.
To file your liabilities more easily, go with an app that works with crypto tax preparation solutions like TurboTax.
Using one or more DeFi protocols comes with tax consequences. The taxable events you could trigger vary from platform to platform. Because of this, adding crypto yields, staking rewards, etc., into the mix will further complicate the calculation of your liabilities.
If you participate in the DeFi space in any way, going with a DeFi-friendly tax app is a must.
Well-rounded crypto tax apps can handle NFTs too.
If you mint, collect, earn, or trade NFTs, you may be liable for tax. Those considered collectibles may be subject to higher capital gains tax rates. At the same time, those classified as inventories may qualify for income tax.
To calculate your NFT-related tax liabilities, use software that can track your activity and let you edit its unsupported transactions.
The usual restriction these data aggregators impose is the transaction limit.
If you’re a prolific trader, you’d want an app that can handle your convoluted, dynamic activity. But if you just buy and hold on, hoping for the best, then any program would suffice.
Assess the kind of crypto investor or trader you were, are, and will be in the future. This way, you can sign up for the most appropriate crypto tax solution.
Tax form generation is a basic functionality of any cryptocurrency tax software.
Unfortunately, many providers only assist crypto investors and traders in select jurisdictions. Find out whether your prospective app serves investors and traders in your country and produces the docs you need.
The best cryptocurrency tax software products do more than just calculate gains/losses and fill out tax forms automatically. They can generate reports to give you complete visibility of your holdings and monitor your portfolio’s performance over time.
Tax-loss harvesting is a standard tool many crypto tax apps share. But you may encounter advanced capabilities like crypto tax prediction if you shop around long enough.
The point of using a crypto tax app is to stay true to the cryptocurrency ethos of self-reliance. Being able to calculate your own crypto liabilities is empowering and money-saving.
However, your app should give you the option to invite your own tax professional if you wish. Good apps make it free and seamless to do so.
Also, many of the best tax software providers for cryptocurrency can introduce you to a crypto tax expert. This is helpful when your accountant is clueless about crypto assets and, therefore, can’t offer reliable advice.
As authorities in this area, they can demystify the ambiguities and intricacies of crypto taxation. Also, they can share sound strategies that can ultimately minimize your liabilities without raising the ire of tax collectors.
Usually, the services of a legitimate crypto tax professional come with a fee. But spending extra on consultation is worth it.
Think of it as an investment in yourself. A couple of sessions with an expert can advance your knowledge in this domain. If you soak up as much as possible, you should be able to flawlessly handle everything moving forward.
More often than not, crypto tax service providers bill per tax season.
Freemium happens to be the most popular pricing model. Some vendors offer free licenses for partial crypto tax software access. While others extend free trials with total access and a low transaction limit.
Sadly, many businesses use the term “free” loosely. Some “free trials” are actually money-back guarantees. A real free trial requires no payment whatsoever.
So, always exercise due diligence in looking for the cheapest crypto tax software plans. Never take claims at face value. More importantly, read the fine print because the devil is in the details.
Generally, crypto tax programs are intuitive. With or without text-based guides and video tutorials, you can get a handle on them in no time.
However, even the most capable apps can sometimes have a mind of their own. That’s why it’s wise to go with a vendor that provides live support around the clock.
The crypto space has no shortage of sketchy and incompetent characters. So, be as selective in choosing your crypto tax calculator as you are in picking your assets to trade.
To avoid getting ripped off, check your prospective company’s backers, affiliations, and track record. Reading crypto tax software reviews about it can reveal important insights into the reputation of providers too.
Paying crypto taxes can be a hard pill to swallow. This is particularly true when you’ve raked in life-changing returns over the years.
The reality is that taxation is the side effect of the authorities’ acknowledgment of crypto. So, as it becomes more mainstream, more governments will want a cut.
It’s necessary and natural to be afraid of getting caught and punished for tax evasion.
The products featured on this best crypto tax software list are your safest bets to avoid upsetting your tax authority. So, we hope that you found this collection of reviews helpful.
How to keep track of crypto for taxes
You can keep tabs on your crypto investing and/or trading activity using a spreadsheet. Taking this route is painfully inconvenient and prone to error, though.
The best way to track crypto for taxes is to use a data aggregator optimized for tax accounting and reconciliation.
It’s also a good idea to import your crypto investments and trades quickly or automatically, using platforms that provide transaction histories. This way, you can easily migrate your data from multiple sources to your data aggregator.
The same goes if you earn your salary in crypto or generate passive income from crypto mining, token sales, and other means. You should link your wallet addresses to your data aggregator too.
However, simply integrating your crypto taxes software with third-party platforms isn’t enough. You should also make sure that you deny unauthorized parties access to your accounts no matter what.
Apart from using strong passwords and safeguarding your login details, you should use crypto service providers that take security seriously.
Centralized intermediaries hold the private keys to your digital assets. If they get hacked, you may never get your funds back and lose access to your transaction histories for good.
How do I manually calculate crypto taxes?
To calculate your tax liabilities without using the best tax software for cryptocurrency, although not the best idea, follow these steps:
- Record your tax lots. A tax lot is an entry that represents an asset you bought or acquired in a single transaction. Tax lots must be detailed. You’d include the amount, acquisition dates, trade, sale, and fiat value when the action was taken.
- Compute your realized capital gains or losses. Find out the accounting methods your tax authority permits. Usually, governments allow FIFO, LIFO, and HIFO. Each option produces a different cost basis..
- Take your transaction fees into account. Adding the amount you paid in fees to the cost basis can decrease your gains or increase your losses. However, the type of transaction determines whether the corresponding transaction fee can affect the cost basis.
- Figure out the applicable tax rate. The authorities tax crypto transactions differently. Generally, the rate for short-term gains is higher than one for long-term ones. When it comes to crypto-related income, you usually have to use your current income tax rate.
The above steps are an oversimplification of crypto tax calculation. Without using crypto taxes software, this task can be extremely tricky, especially when you’ve participated in ICOs or lost coins.
Can TurboTax handle cryptocurrency?
Yes, you can use TurboTax to prepare your crypto taxes.
Strongly consider using a third-party crypto tax program to make your life easier. It’s a data aggregator, tax calculator, and tax-form generator rolled into one.
All of the solutions we’ve covered in this article provide a simple way to import your tax forms to TurboTax.
What is the easiest crypto tax software?
In terms of data ingestion, Koinly, ZenLedger, and CryptoTaxCalculator are the most user-friendly. Among all the best crypto tax software products on this list, only these are integratable with 400+ third-party platforms via API.
In other words, you don’t have to upload CSV files when migrating data from supported technologies.
Choosing any of our top crypto tax software picks would be a step in the right direction and one you shouldn’t wait too long to do!
Romj is a veteran copywriter who used to be a Jack of all trades. Now, he's trying to be a master of one: technology. He jumps down the rabbit hole to size the latest innovations up. As a content contributor for TechJury, he hopes to help you keep up in our fast-paced world with his discoveries.
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