Let’s be honest…
Cryptocurrency can be pretty complicated.
Now, add taxes into the mix.
We know, the result isn’t too pretty.
That’s why we’ve compiled the top cryptocurrency tax softwares out there, making your accounting easier than ever.
Even though cryptocurrencies continue to occupy a gray area in many respects, their status as a taxable asset is one area on which most jurisdictions seem to concur.
So, whether you’re trading, mining, or accepting payments in crypto as a merchant, the chances are you’ll need a tax software provider at some point.
These companies make it easy for you to track and report your cryptocurrency taxes. However, they don’t all offer exactly the same set of services. In this guide, we round up the key elements to consider when choosing a cryptocurrency tax software provider and some of the best ones depending on your needs.
When deciding which crypto tax provider is best for you, some things to consider are:
CrypoTrader.Tax is one of the most popular cryptocurrency tax software out there. Through their TurboTax integration, they’re quick and easy to use.
One of the greatest features of the platform is that it’s completely free to get started. You can import all of your historical trades and transactions from your exchanges with the click of a button. You can even get a free preview of your tax report before ever having to pay.
This gives you confidence that the numbers are accurate before being required to spend any money. This is different from a lot of the other tax platforms out there. Customer support is another strength of CryptoTrader.Tax as they have live chat through Intercom.
As far as pricing goes, this will depend on just how much you use their service. Their cheapest plan of $49 per tax season, allows for up to 100 trades among other features. On the higher end, their premium plan supports unlimited trades at a price of $299 per price season.Visit CryptoTrader
For international support, Koinly is the best option for cryptocurrency tax software. Along with the US and Canada, it can also calculate taxes for 33 other countries across Europe and Asia.
So, for non-US residents or people who may incur tax liabilities by residing in multiple countries, Koinly is the most flexible option.
Like Cointracker, Koinly also offers a free portfolio tracking feature, but the cryptocurrency tax reporting tools are available on different plans. Paid plans start at $79 per year for 300 transactions. It tracks over 6,000 cryptocurrencies and has spot market data going back over six years for some assets.
Koinly also supports tax calculations for non-trading crypto-related activities such as mining and staking. Although we’ve recommended it as the best international option, Koinly is also a strong contender for the best all-rounder.Visit Koinly
TokenTax is our pick for best all-rounder because it offers full flexibility from basic crypto tax reporting up to a premium package that produces a full tax filing.
The most basic package starts at $65 per year for up to 500 transactions via Coinbase or Binance. The next level up integrates with all exchanges, plus offers support for some margin trading platforms, for $199 per year. Full tax filing starts at $499 per year. All levels provide integration with TurboTax.
If you’re a more experienced trader using platforms such as BitMEX or Deribit for margin trading, then the higher packages can also accommodate those needs. TokenTax also supports employee earning a salary in crypto and can offer tax advice in special circumstances such as if you’ve been the victim of an exchange hack.Visit TokenTax
If you’re a newcomer to cryptocurrencies or are only a casual investor, and you’re looking for a simple, low-cost cryptocurrency tax software, Bear Tax is the best option for you.
It offers packages for even the smallest of budgets, with the most basic plan starting at $10 per year for up to 20 transactions, across any number of exchanges.
Even the most expensive package is only $200 for unlimited transactions. With BearTax, you’re only charged at the point you download your tax documents, so you can try the platform out and calculate your tax liabilities for free.
Bear Tax doesn’t support exchanges with margin or derivative trading, so it’s less suitable for advanced traders. However, it does integrate with over 50 exchanges via API or a CSV upload, so it’s still very flexible.Visit Bear Tax
Cointracker goes beyond the remit of pure crypto tax reporting at the end of the financial year. It actively and continuously tracks your entire cryptocurrency portfolio.
If you’re trading assets across many different wallets and exchanges, then it means that the Cointracker software takes all the headache out of remembering where everything is, come tax season. Moreover, the portfolio tracking part of the platform is free, so you only pay for the tax reporting element of Cointracker.
Prices start from free for up to 25 transactions, up to customized pricing for an unlimited number, and go up to $999 for 15k transactions.
Cointracker supports margin trading and offers integrations with over 300 exchanges and 2,500 digital assets, meaning it can calculate taxes and track transactions for even the most obscure altcoins.Visit CoinTracker
Although many people get into cryptocurrency for fun or as a hobby in the first instance, it’s important to understand that crypto transactions come with legal obligations.
Whether you’re a trader, a staker, or a miner, if you select the software provider that’s right for your needs, you can take the headache out of cryptocurrency taxes and focus on the activities you enjoy.
Here’s a tutorial of using TurboTax for cryptocurrency taxes: