Best Crypto Tax Software Solutions Reviewed
Keeping track of your crypto activity for tax purposes can be almost as painful as having your most promising altcoin take a sudden dive. After all, from mining to trading, you have to report every crypto transaction you make to the IRS. That’s a lot of data you need to keep on hand.
Luckily, there’s some help to be found: the best crypto tax software can automate this task for you and provide you with ready-to-file paperwork. We’ve done the research for you, so let’s see which software could be the right one to help you with your crypto taxes.
Koinly is undoubtedly the most feature-rich cryptocurrency tax software on our list. Not only can this tool provide you with accurate reports, but it has multiple features to help you ensure you are not paying a cent over what’s strictly necessary. The first useful feature you should know about is its automated data importing. Since it integrates with many exchanges and wallets, it is unlikely that any transaction record will fall through the cracks. Once the data is imported, it allows you to track every fee and reconcile the information on your report and exchanges in a couple of clicks. It also provides you with advanced transaction filtering. You can use it to quickly see which transactions resulted in the highest gains and set notifications regarding your balance. Not only does it provide more than enough features for you to DIY your taxes in the most effective manner, but this tool is also reasonably inexpensive. Its free plan supports up to 10,000 transactions. However, it won’t allow you to download your cryptocurrency tax reports for free - for that, you need to sign up for one of its paid plans.
- •Automated data importing
- •Tools for top-notch error reconciliation
- •Connects you with tax specialists from five countries
CryptoTrader.Tax is an excellent crypto tax calculator that can help you crunch all your transactions. From there, it will turn them into reports you can file with the IRS. It will have you covered for all the documents you might need. You can also effortlessly create the classic IRS form 8949 and short and long-term sales reports, crypto income reports, international gain/loss reports, and much more. This handy tax software even offers tax-loss harvesting, which is a welcome feature, indeed. CryptoTrader.Tax is straightforward to use and offers very accurate data. It integrates with TurboTax and TaxDirect but also more than 200 crypto exchanges. It also integrates well with the most popular wallets. The price is very affordable, and you can test this calculator entirely for free. If you want to preview or download your reports, you’ll have to sign up for one of its pricing tiers - the basic one costs $49 per tax year.
- •Affordable pricing
- •The most straightforward crypto tax calculator
- •Excellent integration opportunities
TokenTax is another excellent piece of crypto tax software you can entrust with handling your taxes. This tool offers to take a solid selection of crypto tax reports off your plate, including IRS Form 8949. It can also help you with crypto income tax, generate a cryptocurrency audit trail, and international gain/loss reports. Like many other solutions on this list, it can also help with tax-loss harvesting and offers margin trading support. The main reason TokenTax stands out from the competition is that it offers crypto tax services. You can rely not only on its software but also on its cryptocurrency tax filing team. This team is also available to help you with any tax-related task; all you have to do is send them a message. Unfortunately, the company doesn’t offer a free trial, but excellent customer support and features make up for that.
- •Excellent customer support
- •Numerous integration options
- •International trading tax support
ZenLedger is another excellent solution for handling both yours or your clients' taxes on cryptocurrency. This solution can help you cover all types of reports you might encounter. It covers all the tax forms you might need to file or have on hand. It can help you handle the math required to report capital gains and losses. It also offers Grand Unified Accounting - a proprietary ZenLedger feature. It allows you to see all your transactions from multiple wallets and exchanges within a single easy-to-understand spreadsheet. ZenLedger is one of those providers that can help you with your non-crypto taxes as well. It has prepared plans for handling both types of taxes for you. This solution also offers a professional tax suite. It is an excellent choice for professionals looking to provide crypto tax services to their clients. If you are unsure whether ZenLedger is the right solution for you, you can take advantage of its free plan, covering up to 25 transactions. It is also currently offering a 20% discount for new users and an additional 20% discount if you purchase more than one year’s worth of subscriptions. When combined, these discounts are making it one of the most affordable crypto accounting software on this list.
- •Excellent discounts
- •Great selection of integrations
- •All IRS-required forms available
Bear.Tax is another solid platform to help you figure out your taxes. It has all the needed features for you to calculate your crypto taxes. It offers data importing from all available exchanges. From there, it pushes the received information through top-of-the-shelf gain/loss calculators. Its intelligent matching algorithm can help you identify transactions that are not taxable instead of simply adding them to your reports. It also offers the most accurate historical pricing. This is a feature that differentiates it from the competition. Professional traders will most certainly appreciate it when the time comes to tackle cryptocurrency taxes. However, this tool excels as software for accountants looking to take on more clients and their crypto taxes in the most efficient manner. Unlike some other solutions, this one allows your clients to maintain their privacy without compromising the quality of their reports. If you decide to go with this software, you will no longer have to keep asking for client keys or credentials to provide them with accurate reports.
- •A platform built by traders and accounting professionals
- •24/7 customer support
- •Excellent software for tax professionals
If you need help calculating your taxes on crypto as accurately as possible, you might find CryptoTaxCalculator to be a godsend. Not only does this software integrate seamlessly with many popular exchanges, but it also uses the data to offer very detailed calculations. This tool even considers parameters such as airdrops, staking, mining, DeFi staking rewards, and ICO participation. Its algorithm will calculate these and generate tax reports for you. These will clearly outline your realized capital gains and income. From there, you can effortlessly import the data into your tax software or forward it to your accountant. You also want to go with CryptoTaxCalculator if you are outside the US. It supports countries such as Greece, Japan, Portugal, the UK, and many others. Many new countries will likely be added to the list in the years to come.
- •Most detailed tax calculations
- •A lot of countries supported
- •On-chain transactions support
What to Look for in a Crypto Tax Software
When you dive into the crypto world, it’s mandatory to have a good solution for figuring your crypto taxes on hand. As mentioned before - every action you take in the crypto world is still taxable in the eyes of the IRS, and you should have your documents in order.
Your activity is tracked to help you submit accurate reports and avoid overpaying your taxes or paying any penalties.
A good crypto tax software should be able to integrate with all of the popular exchanges and wallets to allow for automatic data input. If you are a professional trader, manually keeping track of all your transactions can be troublesome.
You need to keep track not only of prices but also dates, the amount of coins or tokens you traded, and the length of time you kept those in your wallet.
It is also important that the software you choose can be used in your country, as the taxes differ depending on where you live. The app you choose should follow taxation standards in your country.
Even if you are not a professional trader and have a smaller amount of transactions per year, these tools can save you hours in adding all of your trades manually.
Accuracy of Ready-To-Use Paperwork
Once these data aggregators have all the data they need, they can calculate the crypto taxes you should pay. To do this seamlessly, you should look for the best crypto tax calculator available in terms of accuracy.
Most tax software should also be able to present you with pre-filled and ready-to-download paperwork you can file. It should help you with more than just the infamous IRS Form 8949.
You ought to be able to rely on it for international taxes, your audit track, and even for reporting your taxes on cryptocurrency gains and losses.
The best cryptocurrency tax software will also have excellent dashboards for tracking your transaction history. From there, it should have you covered in terms of tax-loss harvesting and other features intended to simplify your tax handling.
Some of these software solutions will recognize transactions between your wallets and save you from paying the taxes on them. Others will automatically remove duplicate transactions from your forms.
Having all these features available saves time for tax professionals, too. Some of these solutions offer software for tax professionals to help them manage taxes on crypto gains for their clients. Some solutions offer you to hire a team of tax professionals, which could be beneficial for professional traders who don’t have the time to double-check software reports.
Other solutions include non-crypto tax handling - a perfect solution for those looking to handle all their taxes in one place. However, it might be safer to go with a dedicated, traditional tax software solution if you need that.
Reputation and Security
Other essential aspects of each software handling taxes (especially in the crypto world) are its reputation and security. You want to make sure you are working with the best tax software for crypto, one that is reliable and secure.
You don't want it to mess up your reports and have to pay penalties once the IRS compares your report to those submitted by crypto exchanges or, even worse, get accused of tax evasion. Before committing to a particular software, you should be aware of other users’ experiences.
Checking crypto tax software reviews first-hand is an excellent idea that could help you determine whether or not it is the right software to go with.
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Pricing and Free Trials
The best way to test crypto tax software is by getting hands-on experience with a free trial. Many providers on this list offer try-before-you-buy schemes or have basic plans that cost very little.
First-hand experience with a piece of software is the key to finding the right tool to help you handle your taxes on cryptocurrency.
Lastly, there is also the question of the value you get for the price you pay. It would be best to know how many transactions you make per tax year, as these pricing tiers are mainly based on that number. You should also check whether a piece of software will scale well if you make more transactions in the upcoming year.
With some solutions, different tiers unlock different features as well. However, not all features are worth the extra price. Remember that getting accurate tax reports on time is what matters here, and don’t fall for expensive bonus features unless you really need them.
Crypto Tax Software Solutions: Our Top Picks
- CryptoTrader.Tax - Best for calculating your crypto taxes
- TokenTax - Best for integrations with popular exchanges
- ZenLedger - Best for tax professionals
- Koinly - Best for automating tax reports
- Bear.Tax - Best for accurate historical price tracking
- CryptoTaxCalculator - Best for complex tax calculations
Are Crypto to Crypto Trades Taxed?
Yes, crypto to crypto trades is taxed. Since you are typically either earning or losing on these sales, you need to keep track of them and report them to the IRS through form 8949.
Do you have to pay taxes on crypto if you don't cash out?
If you only hold the cryptocurrency, you won’t have to pay any taxes on it. However, when selling it, you’ll have to pay taxes on cryptocurrency gains (but you can also use losses for tax write-offs).
The amount of taxes you’ll pay depends on how long you hold the crypto as well. For example, if you had coins or tokens for less than a year, the taxes you’re obliged to pay upon selling will be the same as your regular income tax rate.
What happens if you don't report cryptocurrency on taxes?
If you deliberately avoid reporting cryptocurrency on taxes, you could get audited by the IRS. This is a daunting process that could lead to you paying a significant amount in penalties or worse.
It is, of course, advisable to report your cryptocurrency income and trading as accurately as possible and pay the tax on cryptocurrency to avoid potentially harsh consequences.
How do I keep track of crypto taxes?
Typically, to report your taxes, you need to keep track of the cryptocurrency name, the date you’ve obtained it, and the date you’ve sold or traded it.
It would help to keep track of the cost basis, gains, sales prices, and any other relevant information. The best crypto tax software on the market keeps track of all this data for you and presents you with accurate and downloadable tax reports you can file with the IRS.