The popularity of cryptocurrencies is increasing rapidly day by day. With that, the number of people getting into the crypto market to reap profits is also on the rise. If you also trade in the cryptocurrency market, you need to be aware of the fact that gains made from crypto investments are subjected to tax. Keeping track of all your crypto transactions can be really time-consuming and annoying, especially if you are not a full-time trader, which most of us are. To calculate the taxes that you have to pay for trading cryptocurrencies, you need to calculate the profits and losses that you have made from all the crypto transactions that you have made within a year. To save yourself from all the hassle that comes with the calculation of taxes, you can use crypto tax software. These dedicated tools allow you to record all your crypto transactions along with the profit and loss that you have made from each transaction, which eventually facilitates crypto tax calculation. In this article, we are going to tell you about the best crypto tax software available in the market right now. But before moving to the crypto tax software list, we would like to help you understand why using crypto tax software can be a really good idea.
Why Use Crypto Tax Software?
The main motive of any crypto tax software is to simplify the tax calculation for crypto transactions. Following are some good reasons to use crypto tax software:
- They can automate the task of collecting crypto transactions data and calculating the tax.
- Crypto tax software can record transactions across multiple crypto exchanges and wallets and synchronize them to create a final tax report.
- Many crypto tax software feature a built-in portfolio tracker that allows you to monitor the value of crypto assets across different exchanges from one single place.
- Almost all the leading crypto tax software comes with an intuitive interface that is easy to learn and use.
Now that you are aware of the benefits that you get with crypto tax software, let us now discuss the best crypto tax software out there.
9 Best Crypto Tax Software
Here is a curated list of the 9 most popular crypto tax software that you can use to elevate your crypto trading experience.
CoinTracker is a crypto tax software that is ranked high among the leading crypto tax software. It allows you to track your crypto investments and get accurate tax reports in a jiffy. By tracking the portfolio performance, it will become easier for you to make decisions that can keep your crypto gains in the green zone. One of the best things about CoinTracker is that it lets you share your crypto reports directly with tax advisors. Also, it offers a free plan that comes with several basic features, including error reconciliation, transaction history and capital gains report generation in CSV format, and forum support. However, the free version only provides 25 transactions. Key Features
- Capital gains calculation.
- Supports more than 300 crypto exchanges and 8,000 cryptocurrencies.
- It allows you to download tax reports quickly and even file taxes with TurboTax.
- It provides portfolio insights to help you stay aware of your crypto investments.
- Mobile apps are available for Android and iOS.
Koinly is another well-known crypto tax software that crypto investors from around the world use to manage their taxes. The software tends to create detailed crypto tax reports in just 20 minutes, which is great considering that if you create reports manually, it will take hours or even days. One of the key highlights of Koinly is its beautiful and intuitive dashboard that lets you visualize your crypto holdings across different exchanges. Also, you can see the ROI and growth of your investments right from the same dashboard. Key Features
- You can view your capital gains or profit/loss report for one single tax year absolutely free of cost.
- For users residing in the US, the filled-in IRS tax forms make it really easy to file taxes.
- It makes use of artificial intelligence (AI) to automatically detect the crypto transfers that you make within your wallets so that they are not considered transactions for tax purposes.
- It supports 50 blockchains, 50 wallets, 350 crypto exchanges, and more than 17,000 cryptocurrencies.
- You can import transaction data using APIs or CSV files.
If you want an affordable crypto tax software that offers a seamless user experience, CryptoTrader can be the right solution for you. It supports integration with several leading cryptocurrency exchanges, including Binance, Coinbase, KuCoin, Bittrex, and Gate.io. Also, it allows you to track your transactions from several decentralized exchanges, such as Uniswap, Maker, and SushiSwap. Working with this CryptoTrade is plain sailing as all you need to do is to connect your accounts across different exchanges and it will start importing your transactions. Whether you are trading cryptocurrencies or involved in mining and staking, CrytoTrader can keep a record of all transactions and generate accurate tax reports. Key Features
- It can create a comprehensive tax report that you can preview for free.
- You can download your tax reports on your device.
- It allows you to share your tax reports with tax professionals or import them to tax filing software.
- It supports multiple reporting methods, including FIFO, HIFO, and LIFO.
- Supports 10,000+ cryptocurrencies.
- Offers live chat support.
TokenTax is a popular choice among crypto traders as it can simplify the overall process of tracking crypto transactions and calculating taxes. You can connect various crypto exchanges so that it can keep track of all your trading activities. Some of the most popular centralized and decentralized exchanges supported by TokenTax include Binance, Bybit, Coinbase, Bittrex, and Uniswap. This crypto tax software provides a Tax Loss Harvesting dashboard that allows you to view all your unrealized gains and losses. TokenTax is a global platform that is available for various countries, including the United Kingdom, Sweden, Japan, and Canada. Key Features
- It can generate tax forms that you can import into tax preparation software, including TurboTax.
- Supports integration with several crypto exchanges.
- It offers quality customer support.
For individuals who are looking for a professional crypto tax preparation service, BitcoinTaxes can be their go-to option. It helps to create reports that contain all the data related to capital gains and losses made from cryptocurrency trading. BitcoinTaxes gives you the flexibility to either import the transactions directly from the exchanges that you use for trading cryptocurrencies or upload the transactions manually. Also, it can monitor transactions made from individual wallet addresses of supported blockchains. Key Features
- It can import transaction histories from many leading exchanges, including Binance, Kraken, KuCoin, and Crypto.com.
- It allows you to use FIFO, LIFO, and average costing methods for calculating crypto taxes.
- You can download IRS Form 8949 in PDF format.
- The capital gains reports can be easily imported into popular tax software, such as TurboTax and TaxACT.
- Its free version comes with several standard features, such as calculation of capital gains and losses, Form 8949 download, and spot pricing for 20,000+ trading pairs.
The next entry on our list of the best crypto tax software is ZenLedger. It is a leading tax software that can help you track your trades and visualize your profits effortlessly. One of the most remarkable features of ZenLedger is its intuitive and easy-to-use interface. ZenLedger can seamlessly integrate with several exchanges, blockchains, and protocols. You can import your transactions data either using an API or using CSV files. Additionally, it is quite easy to get started with this software for calculating your crypto taxes. You simply need to import your transactions, review them, and the software will create tax reports and tax forms that will make the tax filing task easy. Key Features
- Supports integration with TurboTax software.
- It allows you to view all your crypto transactions in a single spreadsheet.
- Comes with a tax-loss harvesting tool.
- Offers excellent customer support.
- It can generate various forms required to file crypto taxes, namely IRS Schedule 1, IRS Schedule D, and IRS Form 8949.
A visually appealing user interface combined with powerful features is what defines CryptoTaxCalculator the best. It is a modern crypto tax software that can elevate your crypto trading experience by simplifying the tax filing process. CryptoTaxCalculator can integrate with all the leading exchanges, wallets, and blockchains. Additionally, it can work seamlessly with several Decentralized Exchanges (DEXs) and Decentralized Finance (Defi) products. One key advantage of using this crypto tax software is that you can get a complete breakdown of the tax calculations that it makes. Key Features
- It supports more than 500 integrations.
- You can get tax reports for any financial year.
- The tax settings are configurable.
- It offers detailed tax reports that you can share with a tax professional or import into tax software.
- It is available for users from many different countries, including the USA, the UK, Canada, Australia, Germany, Japan, Singapore, France, and Greece.
TaxBit is one of the best crypto tax software that allows individuals, enterprises, and governments to manage the taxes of their digital assets. It allows you to manage your portfolio across multiple exchanges, Defi protocols, and wallets. Also, it can help you keep track of your digital assets in NFT marketplaces. This crypto tax software lets you connect your accounts using APIs and automate the process of recording transactions. Also, the platform is designed with the help of professional Certified Public Accountants (CPAs) and tax attorneys, thus the tax calculations are accurate and meet the industry standards. Key Features
- Supports 500+ integrations.
- It employs several tax and spending tools that can process huge amounts of data to provide insights to help you make better decisions.
- It facilitates real-time portfolio performance analysis.
- Users can download Form 8949 for free.
- The dedicated sales team can help you understand how to make the most out of the tool.
Accointing is specialized software for tracking crypto portfolios and filing crypto taxes. Its user-friendly dashboard and built-in crypto tracker allow you to analyze the performance of your crypto investments and provide useful insights to make better investment decisions. It comes with a dedicated US crypto tax calculator that makes it hassle-free to calculate your taxes related to crypto transactions. Also, you can classify your transactions as trading, mining, margin trading, and Defi staking. Thus, it becomes easy to get accurate tax reports. This crypto tax software can generate Form 8949 that you need to fill in the Schedule D Form. Key Features
- Offers a Trading Tax Optimizer tool to help you optimize your crypto taxes.
- Its tax calculator also works for users trading in countries including the UK, Germany, Australia, and Switzerland.
- Comes with a tool for harvesting losses from crypto trading.
- Generates detailed tax reports with a full breakdown of all the transactions.
- You can download tax reports in the .csv format.
Crypto trading has become quite popular these days. Also, many people are jumping on the bandwagon with the hope to make some good profits. However, one particular thing that needs the attention of crypto traders is filing crypto taxes. While tracking all the transactions and calculating capital gains is a cumbersome task, there is an utter need to automate such tasks with the help of crypto tax software. Through this article, we have made you familiar with the best crypto tax software used by professional crypto traders. You can also choose a crypto tax software that best meets your requirements and make the process of filing crypto taxes smooth. Are you using crypto tax software other than the ones listed above? If yes, do let us know about it in the comments section below.
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