What software is best for calculating your crypto taxes? With so many options available it’s hard to figure out which crypto tax software is the one that suits your needs. In this article, we’ll offer you a rundown on seven of the most popular crypto tax software that you can use to figure out how much you owe.
The 7 Best Crypto Tax Software
CoinLedger
CoinLedger is a great option for users because of its simple, intuitive interface. It offers a lot of integrations with exchanges, allowing its users to link multiple exchange accounts to keep track of taxes owed.
Pros
DeFi, NFT, and Exchange Support: CoinLedger offers comprehensive support for DeFi, NFT, and a wide range of exchanges and blockchains, including popular platforms like Coinbase, Gemini, Kraken, and blockchains such as Ethereum, Avalanche, and Solana. CoinLedger’s integrations make tracking transactions a breeze.
Tax-Loss Harvesting: CoinLedger’s Tax-Loss Harvesting report makes it easy for you to see the biggest tax-saving opportunities in your portfolio!
Customer Support: CoinLedger stands out from the competition by providing customer support to all users, regardless of their subscription level. Get help and answers to your crypto tax-related queries through email and live chat support.
Tax Software Support: Seamlessly integrate your crypto tax report with popular tax software platforms such as TurboTax, TaxAct, H&R Block, and Taxslayer. CoinLedger streamlines this process for a hassle-free tax filing experience.
Cons
No Services for Enterprises: Unfortunately, CoinLedger does not provide support for enterprise-based tax reporting.
Koinly
Koinly is a crypto tax platform that was founded in 2018. Koinly offers tax tracking and reporting in over twenty (20) countries.
Pros
International Support: Koinly supports many countries, including the United States, Australia, and Japan, making its crypto tax reporting services accessible to users worldwide.
API and Blockchain Imports: Koinly streamlines the data import process by allowing automatic imports from hundreds of exchanges and blockchains, ensuring efficient and accurate tax reporting.
DeFi, NFT, and Margin Trading: Koinly offers comprehensive coverage by allowing users to import transactions related to DeFi activities, NFT transactions, and margin trading.
Cons
Transaction Volume Limit: Koinly imposes a transaction cap of 100,000 transactions per year. If you engage in high-frequency trading, this platform might not be the most suitable choice for your needs.
Limited Help Center Resources: In contrast to some other platforms, Koinly’s Help Center has fewer resources available to assist users in navigating the tax reporting process.
CoinTracker
CoinTracker was developed in 2017, and remains a well-known crypto tax software platform to date.
Pros
Portfolio Tracker: CoinTracker’s portfolio tracking feature enables you to monitor your gains, losses, and income year-round, providing a comprehensive overview of your financial performance.
Tax-Loss Harvesting: CoinTracker provides users with a clear view of all available tax-loss harvesting opportunities. Depending on the locale, a user could write off some of their crypto losses to offset their capital gains.
Forum Support: Although CoinTracker doesn’t provide live chat support, it offers a user-friendly forum where customers can pose questions and seek assistance with product-related queries.
Cons
Restricted Customer Support: CoinTracker provides email support exclusively to customers subscribed to their Hobbyist and Premium plans.
Variable Pricing: CoinTracker’s pricing is contingent on the volume of transactions you have. For customers with a substantial number of transactions, the cost for a tax report can escalate to as much as $2,999.
ZenLedger
ZenLedger, founded in 2017, is another popular option for tracking crypto tax. It currently boasts over 50,000 users within the US.
Pros
TurboTax Integration: ZenLedger enables users to seamlessly import their crypto tax reports into TurboTax, streamlining the tax filing process.
DeFi, Staking, and NFT Support: ZenLedger extends its support for DeFi, staking, and NFT transactions to users on their top three pricing plans.
Tax-Loss Harvesting Report: ZenLedger gives users a detailed tax-loss harvesting report, helping them identify opportunities for tax savings depending on their tax jurisdiction.
Cons
Paid Customer Support: To access two hours or more of customer support, users are required to subscribe to ZenLedger’s Premium Plan, priced at $999.
Poor User Experience: ZenLedger has faced user criticism regarding its challenging user interface, which some find difficult to navigate.
TokenTax
TokenTax is a one-stop shop that offers accounting services and crypto tax software. However, some users find the software very expensive.
Pros
Accessible Customer Support: TokenTax offers customer support at all pricing levels, ensuring assistance is available to users regardless of their chosen plan.
Comprehensive Tax Filing Service: TokenTax provides a hands-off tax reporting service, where a TokenTax accounting expert will handle your tax filing process entirely for a fee of $4,499.
DeFi and NFT Support: TokenTax extends its support for DeFi and NFT transactions to users subscribed to its Premium pricing plan.
Cons
Concerns About Priorities: Certain users have raised concerns that TokenTax appears to prioritize its in-house accounting service over the development and improvement of its crypto tax platform.
Pricing Comparison: TokenTax is considered relatively costly compared to alternative crypto tax platforms. If you need to import transactions from multiple exchanges and blockchains, the starting cost is at least $199.
TaxBit
TaxBit, founded in 2018, is a crypto tax provider that works with individuals, enterprises and even governments.
Pros
NFT and DeFi Coverage: TaxBit extends support for NFT and DeFi transactions, although it’s worth noting that the coverage is somewhat limited compared to other transaction types. NFT data isn’t included on the dashboard, and the software only supports Uniswap for its DeFi reporting.
Seamless TurboTax Integration: TaxBit’s tax reports can be easily imported into popular tax platforms such as TurboTax, streamlining the tax filing process for users.
Wide Range of Integrations: TaxBit integrates with over 500 exchanges, enhancing its compatibility with various cryptocurrency platforms.
Cons
Restricted Support Access: Despite offering a free plan, TaxBit reserves chat support exclusively for paying customers, potentially leaving free plan users with limited access to customer assistance.
Limited Data Editability: Users have expressed frustration with TaxBit’s interface, finding it challenging to manually input transactions and make necessary adjustments to transaction data within the platform.
U.S.-Centric Focus: TaxBit’s services are primarily tailored to U.S. users, limiting its applicability to an international audience.
CoinPanda
CoinPanda is a relatively new face to the crypto tax world, but the software offers support for over seven thousand different cryptocurrencies.
Pros
User-Friendly Interface: CoinPanda’s interface is designed to be easy for beginners to use, and doesn’t limit its functionality.
Support for DeFi, Staking, and Futures: Users get access to support features that calculates staking rewards, and DeFi investments along with their other transactions for tax reporting.
Localization: CoinPanda offers localized support for clients in many countries, taking into account the tax legislation required in each of these jurisdictions.
Cons
Transaction Limits: While it is possible to get taxes done on CoinPanda for free, the free option only has a limited amount of allowed transactions.
Integrations May Be Difficult: New users especially may have a hard time connecting their wallets and Bitcoin transactions to CoinPanda.
Do I have to pay taxes on Bitcoin?
In the US, crypto is treated as a digital asset. As such, it’s treated much the same as stocks, bonds, and securities. Your crypto may be taxed as capital gains and income. If you convert your Bitcoin to another coin, sell it, or spend it, you may be liable to pay taxes.
What is crypto tax software?
Crypto tax software makes it easier to see where your gains and losses occurred during the last financial year. Good crypto tax software comes with integrations that allow you to automatically create tax reports, saving you time. Manually tracking hundreds or thousands of crypto transactions can take serious effort!
Why do I need crypto tax software?
Crypto tax can be difficult to calculate manually, especially if you have a lot of transactions to keep track of. Each buy, sell, or transfer needs to be noted, and the amount of transactions you have to enter manually adds up quickly. Crypto tax software helps to crunch those numbers and generate a complete tax report!
What is the alternative to using crypto tax software?
If you’re not investing in crypto tax software, you have two options for getting your taxes sorted:
Do your taxes manually
Some people prefer to record every transaction in a spreadsheet, and manually go through the profits and losses to see what the final position is. For some users who only make a few transactions per year, this is not a difficult task. However, for users who have made dozens, hundreds, or even thousands of transactions in a single year, the amount they need to track can add up very quickly. Plotting each transaction is time-consuming, especially if you interact with several exchanges or swap sites.
Hire a tax professional
Instead of using crypto tax software, you could opt for hiring a tax professional. These professionals will go through every aspect of your crypto transactions, including DeFi, NFTs, and centralized exchanges to determine what you owe based on your gains and losses. Unfortunately, hiring a tax professional to look over your crypto is typically expensive.
Is crypto tax software safe?
Crypto tax software is safe. Crypto tax software only requires read-only API keys from your cryptocurrency platforms, ensuring they can’t make transactions on your behalf.
Is crypto tax software free?
Some crypto tax software is free, but others may charge a fee for doing your taxes with them. Free sites give you a platform to plot out your taxes and understand how much you owe.
However, paying for a good crypto tax software is well worth the cost. It helps avoid any reporting issues, allows you to file your taxes on time, and gives you accurate results so you don’t have to pay penalties.
How to choose the best crypto tax software
When selecting the best crypto tax software, it’s crucial to consider several factors to ensure a seamless and cost-effective experience.
Affordability: Look for platforms that offer competitive pricing plans, including free options for basic use or trials. Ensure that your crypto tax software software provides transparent pricing without hidden fees or surprises.
User Experience: A user-friendly interface is crucial for efficient tax reporting. Choose software that offers an intuitive, easy-to-navigate dashboard and clear instructions for importing transactions, generating reports, and filing taxes.
Integrations: Choose crypto tax software that integrates seamlessly with your preferred cryptocurrency exchanges and wallets, as this simplifies the process of importing transaction data. Robust integrations can also facilitate automatic data syncing, reducing manual data entry and potential errors in your tax calculations.
Can I use TurboTax to do my crypto taxes?
TurboTax is a world-class platform for tax reporting. However, the platform has some limitations when it comes to crypto tax reporting.
- Limited Cryptocurrency Support: TurboTax does offer a section for reporting cryptocurrency transactions, but it may not support all cryptocurrencies and tokens. So, for example, if you managed to buy into an altcoin that TurboTax doesn’t support, the system will not calculate your gains or losses from this coin.
- Manual Data Entry: When using TurboTax, you have to enter each transaction you make manually. While this gives you control over what you report, this can be a double-edged sword. It’s easy to miss or double-enter transactions. Additionally, if you do a lot of crypto trading, buying, or selling, you will have hundreds of transactions to enter, which takes a significant amount of time.
- Lack of Real-Time Tracking: TurboTax may not offer real-time tracking of your crypto portfolio’s value and tax liability throughout the year. Since you need to manually enter your transactions into the software, it won’t give you an at-a-glance state of your portfolio. Other specialized crypto tax software can integrate with your accounts and pull transactions as they occur, so you can get an up-to-date view of your crypto holdings!
