Crypto tax software is a tool that can help individuals and businesses accurately track and report their cryptocurrency transactions for tax purposes. Using crypto tax software can make the process of preparing your taxes much easier, especially if you have a large number of cryptocurrency transactions to report. It can also help you ensure that you are in compliance with all relevant tax laws and regulations, which can save you time and potential penalties in the event of an audit.
Crypto accounting and tax software typically include features such as:
- Importing transaction data from various cryptocurrency exchanges and wallets
- Calculating capital gains and losses on cryptocurrency transactions
- Generating reports and forms for tax filing purposes
- Providing tools for tracking multiple accounting methods of cryptocurrency investments
- Offering support for multiple cryptocurrencies and multiple countries’ up to date tax laws
Using crypto accounting and tax software can help individuals and businesses stay compliant with tax laws and regulations, as well as provide a more accurate and organized record of their cryptocurrency transactions. It can also help users to minimize their tax burden by accurately reporting their gains and losses.
We’ve rounded up the best crypto tax software and reviewed its features.
Uses artificial intelligence (AI) to detect and track real-time transfers between wallets, and exchanges.
Koinly offers a variety of features including support for multiple exchanges and wallet addresses including syncing all trading history in one click. Moreover, the software can generate tax reports. Koinly covers DeFi, Margin trades, and Futures. It is a useful tool for individuals and businesses looking to accurately report their cryptocurrency gains or losses to the tax authorities.
- Provides a detailed breakdown of your income-generating activities, such as mining, staking, lending, and other crypto income
- Include a double ledger system, highlighting errors due to incorrect or missing transactions, and auto import verification.
- Available in multiple countries
- It has collaboration and shared access by inviting an accountant or tax agent to access the client’s Koinly account.
- Koinly offers a free plan for tracking up to 10,000 transactions but needs a paid plan to generate tax reports
You can find the full length Koinly Review here.
Compatible with a wide range of tax software.
CoinLedger, formerly CryptoTrader.Tax is a comprehensive software that integrates with a lot of exchanges, offers tax reports, and is compatible with a lot of regular tax software. CoinLedger will automatically classify your transaction history for tax purposes and it can make individual adjustments manually. Coinledger is a user-friendly platform that helps users accurately report their cryptocurrency gains and losses to the tax authorities. It is suitable for both small and large investors and offers various pricing plans to meet the needs of different users.
- Easy-to-use resources to organize information and data
- Best for the high-volume NFT investor
- Real-time updates of movement and transactions from third parties like OpenSea
- No mobile application
- Does not accept crypto payment
Unlimited transactions can be supported.
Cointracker is a cryptocurrency portfolio management and tax-reporting platform. CoinTracker supports a variety of decentralized exchanges and Decentralized apps (Dapps) to help manage DeFi transactions as part of crypto portfolio. One of its features is tax-loss harvesting, which is a strategy that involves selling assets that have decreased in value to offset capital gains and reduce tax liability. Thus, having more information at your fingertips helps you make better trades.
- Instant track on crypto portfolio with a mobile application
- Helps you become fully compliant with cryptocurrency tax rules
- Transaction data is stored securely with encryption
- Easy to use forms and documents with in-depth reporting
- Customized cost basis algorithms that can be applied either per-wallet or universally
- Can support unlimited transactions
- The free account offers 25 transactions and no chat support.
Offers a range of extra accounting features.
ZenLedger is a crypto tax tool for tracking and reporting cryptocurrency transactions for tax purposes. ZenLedger can easily import all of your transactions, review them to ensure accuracy, and download the forms you need to file your taxes. ZenLedger has a great integrations including support for exchanges, coins, wallets, blockchains, fiat currencies, DeFi, and NFT protocols.
Supports a wide range of exchanges, wallets, and integration
- Valuable resource for audits and demonstrating compliance with its GUA (Grand Unified Accounting)
- Has instant chat and phone support
- Security and privacy features including 2FA (two-factor authentication).
- No free trial
Comprehensive crypto tax calculation software as well as a full-service crypto tax accounting firm.
TokenTax is a platform designed to help cryptocurrency investors and traders track and report their digital asset transactions for tax purposes. One of the standout features of TokenTax is its ability to seamlessly sync with popular exchanges and wallets, allowing users to easily import and organize their transaction data in one place. In addition, TokenTax has an expert team of tax professionals available to provide customized tax and accounting solutions to meet the unique needs of each user.
- Has a team of crypto accounting and reconciliation experts
- Pioneered the crypto tax space
- Worked with diverse range of institutional and individual clients in the crypto industry
- No free plan
- It doesn’t support as many exchanges as its competitors.
Best cryptocurrency tax management mobile application.
Accounting is a platform that simplifies cryptocurrency tax management. Accounting is a platform that provides various tools for cryptocurrency investors and traders. One of its main features is a crypto tax calculator, which helps users calculate their capital gains and losses on cryptocurrency transactions and generate tax reports.
Accounting also includes a crypto tracker, which allows users to track the performance of their cryptocurrency portfolio and stay up-to-date on market trends. Additionally, Accounting has a mobile app, which allows users to access the platform’s features on the go. Overall, Accounting is a useful tool for anyone looking to manage their cryptocurrency investments and stay compliant with tax laws.
- Market trend updates and snapshot of the whole crypto market
- Smart watchlists and alerts
- Interactive crypto charts
- Tax reports can only be generated for portfolios with less than 50,000 transactions
Best for multiple exchange integrations.
Coinpanda is a cryptocurrency tax calculation platform that helps users accurately and completely report their cryptocurrency trades and investments for tax purposes. It provides users with capital gains reports, which show the profit or loss made on the sale of cryptocurrency, as well as end-of-year holdings reports, which show the value of a user’s cryptocurrency holdings at the end of the tax year. It also provides tax reports that are customized for the user’s specific jurisdiction, making it easier for users to comply with tax laws and regulations.
- Integrated with over 500 exchanges
- Offers a range of educational resources on tax guides for a specific country
- Intuitive and user-friendly interface that makes it easy for users to track and report their cryptocurrency trades and investments.
- No mobile application
- Does not accept cryptocurrency payment
- More than 3,000 cryptocurrency transactions charged at least $389
How To Choose The Best Crypto Tax Software For You?
The best crypto tax software for you depends on various factors. Crypto assets and tax filing can be complicated, so it’s important to choose a platform that offers comprehensive features, easy-to-use interface and knowledgeable customer support.
When picking the right crypto tax software for your needs, consider factors such as pricing plans, exchange and wallet integrations, security and privacy measures, educational resources and customer service quality.
Let’s go into more detail about the importance of each one, so you know how to pay taxes on this emerging asset class.
Compatibility With Exchanges and Wallets
Does the software support your preferred exchanges and wallets?
The compatibility of crypto tax software with exchanges and wallets is vital when choosing a software tool. If the software does not support your preferred exchanges or wallets, you cannot accurately import and track your cryptocurrency transactions. This could lead to errors in your tax calculations and potentially result in penalties or other issues with the tax authorities.
The best crypto tax software typically supports a range of exchanges and wallets, but it’s essential to check whether your specific exchanges and wallets are supported. Some software may support more exchanges and wallets than others, so you may want to consider this when deciding.
Once you have imported your transactions into the crypto tax software, the software should be able to categorize and track them accurately. This will help you generate accurate tax reports and forms necessary for compliance with tax laws.
It’s crucial to choose crypto tax software compatible with your preferred exchanges and wallets, as this will ensure that you can accurately track and report your cryptocurrency-related activities for crypto tax reports purposes.
Does the software automatically import and categorize your transactions, or do you have to do this manually?
Automation refers to the ability of a software tool to import and categorize your cryptocurrency transactions automatically. This can be a helpful feature when it comes to paying taxes on your crypto transactions, as it can save you time and effort by eliminating the need to enter and organize your data manually.
Crypto taxes are taxes that are levied on cryptocurrency transactions. These transactions can include buying and selling cryptocurrency, using cryptocurrency to make purchases, or exchanging one cryptocurrency for another.
Depending on your jurisdiction, you may be required to pay taxes on your crypto transactions, and failing to do so can result in penalties and other issues with the tax authorities.
Automation can be advantageous when calculating and reporting your crypto taxes, as it can help ensure that your data is accurate and complete. The software can help you quickly and easily generate the necessary tax forms and reports by automatically importing and categorizing your transactions.
This can be especially helpful if you have many transactions to report or are unfamiliar with the tax laws that apply to your cryptocurrency activities.
Is the software reliable for calculating capital gains or losses and generating tax forms and reports?
Accuracy is an essential factor to consider when choosing a crypto tax software tool. Crypto tax software aims to accurately calculate your capital gains or losses on cryptocurrency transactions and generate proper tax forms and reports.
If the software is inaccurate, it could result in errors or omissions on your tax documents, which could trigger an audit or lead to penalties from the tax authorities.
Top crypto tax software should be reliable and accurate when calculating capital gains or losses. This may involve using algorithms or other methods to analyze your transactions and determine your tax liability.
The software should also be able to generate proper tax forms and reports, such as IRS Form 8949, which is used to report capital gains and losses on your tax return.
In addition to accuracy, some crypto tax software tools offer additional features, such as tax loss harvesting tools. Tax loss harvesting is a strategy that involves selling investments that have experienced a loss to offset gains from other investments and reduce your overall tax liability.
Some crypto tax software tools may include tools to help you identify tax loss harvesting opportunities or automate selling and repurchasing investments.
Cost Compared To Tax Professionals
What is the price of the software, and is it a one-time fee or a subscription-based model?
The cost of crypto tax software is an important factor to consider when choosing a tool. There are a range of options available, and the price can vary depending on the software’s features and functionality. Some software is available for a one-time fee, while others are offered on a subscription basis.
International tax reports may require additional fees, as some crypto tax software tools charge extra for the ability to generate tax forms and reports for multiple countries. This can be particularly relevant for individuals and businesses operating in multiple jurisdictions and filing tax returns in multiple countries.
Capital gains tax is a tax that is levied on the profit that you realize when you sell an asset for more than you paid for it. If you have made a profit on your cryptocurrency transactions, you may be required to pay capital gains tax.
The amount of tax you owe will depend on various factors, including the type of cryptocurrency, the length of time that you held the asset, and your tax bracket.
Cryptocurrency tax software can help you calculate your capital gains tax liability and generate the necessary tax forms and reports. The cost of the software may be worth it if it saves you time and effort, and if it helps you accurately calculate and report your taxes.
The cost of crypto tax software is vital, especially if you have many transactions to report or are operating in multiple jurisdictions. It’s crucial to weigh the software’s cost against its potential benefits to determine whether it is worthwhile.
Is customer support available if you have questions or run into issues with the software?
Customer support can be an essential consideration when choosing crypto tax software. If you have questions or run into issues with the software, it can be helpful to have access to support from the software provider. This could include access to online resources, such as FAQs or user guides, and contacting the provider directly via phone or email.
Some crypto tax software tools offer more comprehensive customer support than others. Some offer live customer support, while others offer only via email or online resources.
It’s important to consider your needs and preferences when it comes to customer support, and to choose a software tool that offers the level of support that you feel comfortable with.
If you are new to using crypto tax software, or if you are not familiar with the tax laws that apply to your cryptocurrency transactions, it may be especially important to choose a tool that offers robust customer support. This can help you get the help you need if you have questions or run into issues while using the software.
Customer support is an essential factor to consider when choosing crypto tax software. It can be helpful to have access to support if you have questions or run into issues while using the tool.
Ease of use
Is the software user-friendly and easy to navigate?
Ease of use is an important factor to consider when choosing crypto tax software. If the software is difficult to use or navigate, it can be frustrating and time-consuming, discouraging you from using it or cause you to make errors.
Ideally, the software should be user-friendly and easy to navigate, with a clear interface and intuitive controls. This can make it easier for you to use the software and get the most out of it. Some software tools may offer tutorials or other resources to help you get started, which can be helpful if you are new to using crypto tax software.
If you are not technically savvy or new to using cryptocurrency, you may want to look for software with a remarkably user-friendly interface. This can make it easier for you to use the software and help you get the most out of it. Crypto tax reports are complicated enough. The software shouldn’t add onto the complexity of this process.
In short, if you are investing in cryptocurrency or utilizing crypto to pay for items and services, keep good records of even small transactions. Doing so will ensure that your taxes are filed correctly, avoiding any nasty surprises that could result in an audit or even legal action.
Suppose you have used professional software to help with this process. In that case, you can rest knowing that your information is handled professionally and according to the highest standards.