Crypto Tax Software: The 5 Best Crypto Tax Software Brands and Why You Need Them
Crypto Tax SoftwareCrypto Tax Software: The 5 Best Crypto Tax Software Brands and Why You Need Them
Graeme Whiles
Cryptocurrency has experienced a meteoric rise. Like coronavirus or Justin Bieber, cryptocurrency has seen its peaks and troughs, but it is very much here to stay.
Despite its popularity, many people are unaware that you must report any crypto income, and even fewer people know how to.
And with limited information online, it is hard to know where to start.
Sadly, we can't get you Justin Bieber tickets. But we can identify the five best crypto tax software for you to use.
So, we did just that.
It is worth noting that we are not qualified accountants despite our many talents. For expert tax advice, please speak to a specialist. For all things Justin Bieber, drop us an email.
FAQs
Do I have to report crypto income?
Yes. Any cryptocurrency is taxable from Bitcoin to Omicron (yes, that is an actual coin). The IRS deems any cryptocurrency holding as "property." So, your virtual currency gets taxed similarly to other assets, such as gold or stocks.
Do I need crypto tax software?
If you have invested in cryptocurrency and are not experienced with doing your taxes, you may want to use crypto tax software to help make things a little easier. Crypto taxation software ensures you meet all your tax obligations and don't get in trouble with the IRS.
How do I do taxes with crypto?
Because the IRS views cryptocurrency as a property, the capital gains and losses you made should get divulged on Schedule D and Form 8949.
Are there any free crypto tax calculators?
Yes. There are plenty of free crypto tax calculators you can try. If your taxes are a little more complex, you may want to consider one of the paid options available to you.
How do I keep track of crypto trades for taxes?
Keep track of the following information:
What the name of the cryptocurrency is
When you made the transaction
When you bought, sold, or exchanged that currency
How many units in the purchase
The value in US Dollars at the point of transaction
What your total of cryptocurrency is
All bank statements for reference
Address details of your digital wallet
Do you have to pay taxes on crypto if you don't cash out?
Owning cryptocurrency is not a taxable event. If you have bought and currency hold crypto, that is not taxable. Taxation occurs with any crypto transaction.
The 5 Best Crypto Tax Software Brands
TokenTax: Best for integrations with popular exchanges
Via: TokenTax
TokenTax, from $65 per tax year
Pros:
Several integration options
International trading tax support
High-quality customer service
Cons:
More expensive than other options
No free trial
TokenTax Plans
The Basic Plan:
$65 per tax year
Up to 500 transactions
Coinbase and Coinbase Pro API only
IRS Form 8949 or international report
Live chat support
Unlimited tax form revisions
The Premium Plan:
$199 per tax year
Up to 5,000 transactions
DeFi and NFT automated integrations
Support for every exchange
BitMEX, Deribit, Bybit margin support
Tax-loss harvesting
Basic Plan features
The Pro Plan:
$799 per tax year
Up to 20,000 transactions
All margin exchanges supported
Premium Plan features
Why choose TokenTax
First up is TokenTax. This tool offers IRS Form 8949, which is essential for taxation purposes. This tool brings the best customer support system, with TokenTax tax filing specialists ready to help you with any issues or queries.
However, there is no free trial to test this tool out, and if you are a margin trader or an advanced trader, $799 is one of the pricier options on this list.
CryptoTrader.Tax: Best for calculating your crypto taxes
Via: Crunchbase
CryptoTrader.Tax, from $49 per tax year
Pros:
Offers tax-loss harvesting
The most user-friendly crypto tax calculator
High-quality integration options are available
Free trial available
Cons:
More expensive than other options
CryptoTrader.Tax Plans
The Hobbyist Plan
$49 per tax year
100 trades
Free report preview
Free data import
Unlimited revisions
DeFi support
IRS Form 8949
Income report
Capital gains report
Tax-loss harvesting
Live chat support
The Day Trader Plan
$99 per tax year
1,500 trades
Same features as the Hobbyist Plan
The High Volume Plan
$199 per tax year
5,000 trades
Same features as the Day Trader Plan
The Unlimited Plan
$299 per tax year
Unlimited trades
Same features as the High Volume Plan
Why choose CryptoTrader.Tax
When it comes to crunching numbers, CryptoTrader.Tax is a great crypto calculator. This tool automatically takes your data and turns it into a formatted report to submit to the IRS.
For an affordable fee, the CryptoTrader.Tax tool integrates with most crypto exchanges and digital wallets and is an excellent option. It also offers the opportunity of tax-loss harvesting, which is a handy feature that other software does not provide.
BearTax: Best for accurate historical pricing tracking
Via: Crunchbase
BearTax, from $10 per tax year
Pros:
24/7 customer support
Historical pricing feature
A platform built by accounting professionals and crypto traders
Free trial available
Cons:
Not user-friendly for tax beginners
BearTax Plans
The Basic Plan
$10 per tax year (no change if you sign up for two years)
Up to 20 transactions
Unlimited exchanges
The Intermediate Plan
$45 per tax year ($40 per tax year if you sign up for two years)
Up to 200 transactions
Unlimited exchanges
Email support
The Expert Plan
$85 per tax year ($75 per tax year if you sign up for two years)
Up to 1000 transactions
Unlimited exchanges
Chat support
Multiple exchange accounts
The Professional Plan
$200 per tax year ($175 per tax year if you sign up for two years)
Unlimited transactions
Unlimited exchanges
Priority chat support
Multiple exchange accounts
24/7 chat support
Connect with an accountant
Custom file imports
Why choose BearTax
BearTax is another excellent software tool to help you work out your crypto taxes. It has all the basics you need and provides data importing from all necessary exchanges. BearTax has an excellent feature that provides top-level historical pricing, a feature not my competitors offer. If you are a professional trader, you will appreciate this feature when doing your taxes.
Koinly: Best for automating tax reports
Via: Twitter
Koinly, from $0 per tax year
Pros:
Automated data importing
Linked up with tax specialists around the world
Free trial available
Cons:
For many transactions, expect to pay a premium
Customer service is not as excellent as others
Koinly Plans
The Free Plan
$0 per tax year
10,000 transactions
Unlimited wallets and exchange accounts
Portfolio tracking
Capital gains preview
The Newbie Plan
$49 per tax year
100 transactions
All Free Plan features
Plus
Form 8949, schedule D tax report
International tax reports
Comprehensive audit report
The Hodler Plan
$99 per tax year
1000 transactions
All Newbie Plan features
The Trader Plan
$179 - $279 per tax year (dependant on transactions)
3000 - 10,000 transactions
All Holder Plan features
Why choose Koinly
Koinly boasts an extensive range of features, which was one of the main reasons this software made our top five. Automated data importing is one of its best features. This feature is excellent if you have many wallets and use various exchanges, as it ensures that no transaction records get missed.
However, it is worth noting that although there is a free tool available, you won't be able to download your report for free.
Crypto Tax Calculator: Best for complex tax calculations
Crypto Tax Calculator, from $49 per tax year
Pros:
Highly detailed and specific calculations
Considers more parameters than others
High-quality customer service
Cons:
More expensive than other options
Crypto Tax Calculator Plans
The Rookie Plan:
$49 per tax year
100 transactions
Unlimited exchanges
Tax breakdown analysis
Airdrops
Reports for all financial years
Capital gains report
Form 8949 & 1041 S1
The Investor Plan:
$189 per tax year
10,000 transactions
All Hobbyist Plan features
Plus
Borrowing and Lending
Mining and Staking
The Trader Plan:
$299 per tax year
100,000 transactions
All Investor Plan features
Plus
Trading stock report
Why choose Crypto Tax Calculator
If you want the most accurate tax calculations possible, you might want to consider Crypto Tax Calculator. As with other software on this list, it integrates well with the most popular crypto exchanges, but it also has technology that can provide high-detailed calculations.
The Crypto Tax Calculator considers extra parameters, including mining, airdrops, Defi staking rewards, and other staking.
Therefore it provides you with the clearest view of realized capital gains and income. As you would expect due to this extra data, the cost for this service is a little more than other options.
Crypto Tax Software Brands: Conclusion and Takeaways
With so many choices out there, you have plenty of options to try before you decide which crypto tax software is suitable for your needs. Even software that doesn't offer you a free trial is not too expensive, so don't feel that you are stuck with it once you have made a choice.
Here's a quick recap of the top five brands:
TokenTax: This tool brings with it the best customer support system, with TokenTax tax filing specialists ready to help you with any issues or queries.
CryptoTrader.Tax: This tool automatically takes your data and turns it into a formatted report to submit to the IRS.
BearTax: BearTax has an excellent feature that provides top-level historical pricing, a feature not my competitors offer.
Koinly: This tool is excellent if you have many wallets and use various exchanges, as it ensures no transaction records get missed.
Crypto Tax Calculator: The Crypto Tax Calculator considers extra parameters, including mining, airdrops, Defi staking rewards, and another staking.