5 Best Crypto Tax Software
Discover the top 5 crypto tax software solutions for hassle-free cryptocurrency tax reporting. Streamline your taxes today!
The cryptocurrency market is full of ups and downs. This hour, investors are reaping huge profits and planning to invest more, the next hour, the market crashes, dashing investors' hope. While the average crypto trader is usually very happy calculating their crypto earnings, each cryptocurrency transaction is subject to taxes.
Regardless of the type of crypto assets you are trading and wallet or exchange you have an account, the tax authority (like the IRS in the United States) expects you to file your crypto tax returns as at when due, which is why you need the best crypto tax software to handle tax reporting so that you can concentrate on other important things.
Choosing the best crypto tax software can be overwhelming for beginners, so to give you a heads-up, we have reviewed the best 5 crypto tax software for your consideration. The review also includes their pros and cons, and who the software is best suited for.
5 Best Crypto Tax Software
Best for traders or investors who need tax reports for different countries
Koinly is undoubtedly the world's most popular crypto tax software on the market. The company has carved a niche for itself in that it can help you calculate and report your crypto taxes in less than 20 minutes. Koinly is designed to integrate or connect with a wide range of wallets and exchanges, thereby eliminating the chances of your crypto transactions not getting captured during tax time.
Koinly connects with many exchanges and wallets, therefore eliminating any risk of your transaction record not being tracked with their system. You can also track all imported information and reconcile every fee on your exchange because of Koinly's automated data importing. Koinly also offers advanced transaction filtering and transaction sorting aside from ease of calculation and report generation. Therefore, you can gauge which transactions resulted in certain gains.
Furthermore, you can also track all your cryptocurrency transactions and reconcile any noticeable discrepancies on your wallet or exchanges because of their automated tax reporting system. Additionally this crypto tax software office transaction sorting and advanced transaction fee tree in addition to the report generation and ease-of-use that all users enjoy. With these features, you can easily determine which transaction resulted in certain games.
Koinly has a highly intuitive and user-friendly interface.
It offers a free plan with limited features.
It can connect with at least 300 exchanges, blockchains, and wallets.
The tax reporting system is compliant with most jurisdictions.
Comprehensive tax reports
Double-entry ledger system for better transaction tracking
Automates data importing
Allows data exporting to other tax software
Best for international tax calculations and filing
The premium features are not available with the starter plan.
Limited customer support options.
Best for crypto traders/investors with diverse portfolios.
CoinTracker is another powerful crypto tax software that you can use to accurately report your crypto taxes during tax time. CoinTracker makes it easy for you to import your transactions from your wallets/exchanges and track your portfolios. This software can also help you save money through a strategy known as tax-loss harvesting.
With CoinTracker, creating tax reports takes just minutes, and you can easily send them to TurboTax or your personal accountant. It allows you to calculate your capital gains, profits, and losses. Additionally, the unlimited tier offers access to a dedicated CPA for personalized consultations.
CoinTracker provides customer support in multiple countries, including the US, UK, Canada, Australia, and India, while offering limited support in other regions. Its customer support services are comprehensive.
If you are ready to report your crypto taxes, connect to your wallet/exchange and generate ready-to-use of your crypto transactions in minutes. It can calculate income tax and capital gains/losses tax. It supports more than 10,000 tokens and can connect with any exchange.
CoinTracker simplifies crypto tax reporting.
Support both DeFi and NFT transactions.
Seamless integration with popular tax filing tools like TurboTax.
Supports more than 300 wallets, exchanges, and blockchains.
Has an app for Android and iOS systems
Offers 12 district methods for completing tax reports
The premium plan is somewhat expensive.
The free plan has limited features.
Chat support is not a priority for free plan subscribers
Free plan allows for 25 transactions only
Best for US-based crypto investors.
CryptoTrader.Tax is an outstanding crypto tax software for its ease of use and the ease of calculating crypto cost basis. Reporting your crypto taxes as a newbie and classifying them according to each event can be a difficult endeavor, but CryproTrader.Tax can help you simplify the process. It does this by connecting to your wallet (like MetaMask) or exchanges (like Binance and Coinbase) and sorting out your transactions into applicable taxes. You can then download the reports or export the report to a tax filing system.
CryptoTrader.Tax integrates with a number of blockchains, wallets, and exchanges, making it easy to pull all your crypto transactions in one place for accurate tax reporting.
CryptoTrader.Tax is an easy-to-use software.
It offers partner programs for accountants and other tax professionals.
The tax reports complies with the IRS guidelines.
It integrates with lots of exchanges via API.
If users face any issues while using CryptoTrader.Tax, they can rely on the responsive customer support team to provide them with assistance.
For cryptocurrency traders, CryptoTrader.Tax offers a variety of pricing plans to choose from, with the cheapest one starting at $49, making it a cost-effective option.
CryptoTrader.Tax doesn't have a mobile app.
It also lacks support for traders outside the US.
Although popular tax accounting methods like FIFO and LIFO are supported by CryptoTrader.Tax, it doesn't support every method, including specific identification.
Users who prefer real-time assistance may find CryptoTrader.Tax's lack of live chat support inconvenient, as it's not offered unlike some of its competitors.
Best for experienced crypto investors seeking international tax compliance.
Founded in 2017, TokenTax is a tax filing company offering services across 18 countries. You can pull up your crypto transactions from different exchanges and wallets and report the same to the tax authority. This crypto tax software works with popular exchanges like Binance and Coinbase, making it easy for millions of taxpayers to automatically calculate their crypto tax liabilities during tax time.
TokenTax has a responsive customer support desk that you can reach out to whenever you are stuck with tax reporting. The customer support representative will hold you by the hand and show you exactly what you need to do to comply with tax authorities' guidelines. The highpoint of this tool is that it is borderless, which means you can stay anywhere on earth and report your taxes so long as you are connected to the internet.
The customer support desk is top-notch
Tax reporting for multiple countries.
TokenTax supports different tax methods, including HIFO, LIFO, and FIFO.
It works with major accounting tools like QuickBooks.
By utilizing the software, you can acquire a comprehensive overview of your tax responsibilities as it can produce numerous tax reports, such as Form 8949, Schedule D, and other tax forms.
The pricing tiers are quite expensive
Beginners will find it difficult to quickly get along as the interface is somewhat cumbersome.
A mobile application is not available for TokenTax.
Due to the software's restricted customization alternatives, certain components of tax reports may not be customizable for the users.
Best for crypto traders/investors who desire a tax solution with the IRS compliance.
BearTax is another crypto tax software that you can use to accurately report your crypto taxes during that time. This software offers crypto portfolio tracking services, which means you will never miss out on any crypto transaction when reporting your taxes.
BearTax integrates with the number of wallets and exchanges using API. Some of the popular ones include KuCoin, Gemini, Binance, and Coinbase. One good thing about BearTax is that you can use it to report your taxes in less than 30 minutes.
BearTax supports taxpayers with audit and tax filing.
It integrates with over 25 wallets and exchanges through API.
It comes with a simple interface.
The pricing is relatively affordable.
The program has the capability to import data from multiple sources, such as exchanges, wallets, and other locations.
BearTax provides exceptional customer service options, including both live chat and email support.
BearTax lacks premium tax reporting features.
Its use is limited within the US.
Users may find it inconvenient that BearTax lacks a mobile application.
The software does not provide a trial period free of charge.
Crypto trading can be exciting when you're making money from it and you're not falling short of the guidelines issued by tax authorities. Using the right crypto tax software to report your taxes will not save you time but will also help you comply with tax regulations. The best crypto tax software largely depends on your budget, jurisdiction, as well as the complexity of your crypto portfolio. So, weigh the pros and cons, and do your due diligence before choosing a crypto tax software to work with.