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Our readers come first

 

Our primary goal at The Modest Wallet is to help our readers make smarter money decisions without needing a finance degree. Because personal finance education should be free and accessible to everyone.

 

As an independent publisher, transparency is at the core of what we do and how we do it, so we want you to know that we regularly partner with brands that have products and services that align with our values and will help our readers. When you click on some of the links on our site and complete a required action (i.e., sign up for a promotion, download an app, purchase an item, etc.), we may earn a small commission at no extra cost to you.

 

These partnerships may influence the products we review and write about (and where those products appear on the site), but they in no way affect our recommendation. All of our content and reviews are based on our research and honest opinion. This is regardless of the compensation. None of our partners or advertisers have editorial input or control because our relationship with our readers always comes first.

12 Best Crypto Tax Software in 2022

Having good crypto tax software can help you simplify your tax returns by providing you with with ready-to-file paperwork.

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Calculating taxes is complicated enough, but wait until you add crypto to the mix! Although cryptocurrency is becoming more mainstream, taxation policies vary depending on how often you trade, how long you “hodl,” and where you live. 

Thankfully, there are crypto-specific tax software that can take some of the stress out of filing taxes. Please consider the reviews below to narrow down your “tax season shopping list.

TL;DR

  • Best Overall— Koinly
  • Best for US Investors — CoinLedger
  • Best for DeFi and NFT Traders  — ZenLedger
  • Best for Complex Tax Reconciliation — TokenTax
  • Best for Compliance and Customer Support  — TaxBit
Platform Pricing Free Trial Learn More
Koinly From $0 Yes Learn More
CoinLedger From $49 (100 transactions) Yes Learn More
TokenTax From $65 per tax year No Learn More
Accointing From $0 (25 transactions) Yes Learn More
ZenLedger From $0 (25 transactions) Yes Learn More
BearTax From $0 (20 transactions) Yes Learn More
CryptoTaxCalculator From $49 per tax year Yes Learn More
CoinTracking From $0 (200 transactions) Yes Learn More
Coinpanda From $0 (25 transactions) Yes Learn More
TaxBit From $0 (unlimited transactions) Yes Learn More
CoinTracker From $0 (25 transactions) Yes Learn More
BitcoinTaxes From $0 (20 transactions) Yes Learn More

Best Crypto Tax Software

There is no shortage of options when it comes to reporting your transaction for tax purposes. Some of them have more bells and whistles than others, so it will really come down to your personal preference.

1. Koinly: Best All-Around Crypto Tax Software

Koinly Screenshot
Source: Koinly

In most lists of the best crypto tax software, Koinly claims the top spot, and as you review this London-based company’s dozens of features, it’s clear to see why it has such a positive reputation. 

Koinly offers integrations with 350 exchanges, 50 wallets, and 50 blockchains to track your crypto trades, staking rewards, and lending activities. Koinly is also one of the most widely-adopted crypto tax platforms with availability in 20 countries. Even better, you don’t have to spend a dime to see a preview of your portfolio for up to 10,000 transactions.

If you choose to have Koinly file your Form 8949, you could easily submit it through TurboTax, TaxAct, or H&R Block.  

Key features: 

  • Offers free crypto portfolio tracking and capital gains preview
  • International tax reports and Form 8949 available for global clients 
  • Uses advanced “smart transfer matching” to eliminate transfers between your wallets from total gains
  • Works with TurboTax, TaxAct, and H&R Block 
  • Uses “auto-balance verification” to double-check your data is correct

Pricing: 

  • Essential features: Free (no tax documents) 
  • Newbie (100 transactions): $49 per tax year
  • Hodler (1,000 transactions): $99 per tax year
  • Trader (3,000 transactions): $179 per tax year
  • Pro (10,000+ transactions): $279 per tax year

In A Nutsehll

  • Transaction Limit: Unlimited
  • Pricing: From $0 per tax year
  • Supported Exchanges: 350+
  • Compatibility: H&R, TurboTax, and TaxAct
  • Availability: Over 100 countries

on Koinly’s website

2. CoinLedger: Best for US Investors Who Want a Straightforward UI

CoinLedger Screenshot
Source: CoinLedger

People who’ve been involved in the crypto space for a few years may be more familiar with CoinLedger’s original name: CryptoTrader.Tax. Although this Kansas City company still handles crypto tax documentation, it decided to rebrand to highlight its expanding features, especially its portfolio tracker.

Today, CoinLedger has roughly 100,000 users who rave about the platform’s simple-to-scan UI. Customers on CoinLedger can sign up for free and link dozens of popular exchanges, wallets, and DeFi protocols to analyze their crypto portfolio’s worth. CoinLedger also offers IRS tax documents plus TurboTax integrations for an extra fee. 

CoinLedger is a reliable software for American crypto investors who want a no-frills interface that helps track your crypto and generate high-quality tax forms.

 Features:

  • Capital gains, audit trail, income, and IRS-compliant 8949 forms. 
  • Tax-loss harvesting calculations. 
  • API integrations with dozens of exchanges and wallets. 
  • Easy connection to TurboTax and TaxAct. 
  • 14-day money-back guarantee. 
  • Live chat support.

Pricing:

  • Hobbyist (100 trades): $49 per tax year
  • Day Trader (1,500 trades): $99 per tax year 
  • High Volume (5,000 trades): $199 per tax year 
  • Unlimited: $299 per tax year  

In A Nutsehll

  • Transaction Limit: Unlimited
  • Pricing: From $49 per tax year
  • Supported Exchanges: 100+
  • Compatibility: TurboTax and TaxAct
  • Availability: Canada, United States and Australia

on CoinLedger’s website

3. TokenTax: Best for Complex Tax Reconciliation

TokenTax Homepage
Source: TokenTax

TokenTax is especially useful for crypto traders who use a lot of complicated trading strategies. In fact, this company constantly says its goal is to make DeFi more accessible by offering a simplified tax solution. In addition to working with TurboTax and putting together a Form 8949, TokenTax offers many unique features that could take the burden off of DeFi trades.

For instance, TokenTax offers reports on Ethereum gas fees as well as an easy-to-read tax harvesting dashboard. You could also input any NFT trading you’ve been doing on DeFi markets with select TokenTax plans.

TokenTax distinguishes itself from the competition with its professional reconciliation services. The company offers live chat support in every bracket of its pricing schedule, and it has the option for VIP guidance if you have particularly challenging taxes to file.

Features:

  • Form 8949, FBAR, and international tax forms
  • Offers reports on Ethereum gas fees
  • Tax-loss harvesting dashboard
  • DeFi and NFT tracking available
  • Calculates margin and futures trading activity

Pricing:

  • Basic (500 transactions on Coinbase): $65 per tax year
  • Premium (5,000 transactions): $199 per tax year
  • Pro (20,000 transactions): $799 per tax year
  • VIP (30,000 transactions): $3,499 per tax year

In A Nutsehll

  • Transaction Limit: Up to 30,000
  • Pricing: From $65 per tax year
  • Supported Exchanges: 85+
  • Compatibility: TurboTax
  • Availability: Worldwide

on TokenTax’s website

4. Accointing: Best for Low-Volume Crypto Dabblers

Accointing Screenshot
Source: Accointing

Accointing is a Swiss-based software provider that offers crypto tax services for traders in the US, Australia, and a few European nations. Similar to CoinLedger, Accointing has a clean user interface with easy-to-read graphs on your crypto gains and losses. 

It’s also easy for beginners to use Accointing as it offers seamless CSV, API, and public address integrations with 300 exchanges and wallets. Once you’ve downloaded all of your addresses, you can get a country-specific tax report. You could also track your crypto portfolio on the go with Accointing’s mobile app.

Aside from the clean UI, Accointing’s most attractive feature has to be its free account for novice traders. Anyone who’s done 25 crypto trades in the year can use Accointing for free. So, if you’ve only dabbled in crypto this year, there’s nothing to lose from opening a free Accointing account. 

Features:

  • Desktop portfolio tracking and mobile crypto tracker app
  • Country-specific tax reports in six Western nations
  • Integrates with 300 wallets and crypto exchanges
  • Tax-loss harvesting tool
  • Works with TurboTax

Pricing:

  • Free (25 transactions)
  • Hobbyist (500 transactions): $79.00 per tax year 
  • Trader (5,000 transactions): $199.00 per tax year
  • Pro (50,000 transactions): $299.00 per tax year 

In A Nutsehll

  • Transaction Limit: Up to 50,000
  • Pricing: From $0 per tax year
  • Supported Exchanges: 200+
  • Compatibility: TurboTax
  • Availability: Worldwide

on Accointing’s website

5. ZenLedger: Best for DeFi and NFT Traders 

ZenLedger Screenshot
Source: ZenLedger

ZenLedger is a Washington State-based company that has been helping crypto investors file taxes since 2017. Like other standard crypto tax software, ZenLedger can give you a clear picture of your gains & losses and create IRS-compliant documents. 

What sets ZenLedger apart is its heavy focus on DeFi and NFTs. People deeply involved with advanced activities like liquidity pools, NFT swapping, or margin trading can see their extra gains using ZenLedger’s platform. ZenLedger also has a proprietary “Grand Unified Accounting” software that gives you a clear spreadsheet on all your transactions.  

While ZenLedger could work for any type of crypto investor, it’s better suited for more experienced and professional clients. 

Features:

  • Works with 400 exchanges and 30 DeFi protocols
  • Staking, NFT trading, and margin trading are available 
  • Calculates mining revenue, crypto income, and airdrops 
  • Duplicate and self-transfer AI-based auto-resolving
  • Phone, email, and live chat support
  • 2FA for extra security

Pricing:

  • Free (25 transactions)
  • Starter (100 transactions): $49 per tax year
  • Premium (5,000 transactions): $149 per tax year
  • Executive (15,000 transactions): $399 per tax year
  • Platinum (Unlimited): $999 per tax year

In A Nutsehll

  • Transaction Limit: Unlimited
  • Pricing: From $0 per tax year
  • Supported Exchanges: 400+
  • Compatibility: TurboTax
  • Availability: Worldwide

on ZenLedger’s website

6. BearTax: Best for High-Volume Traders or Tax Professionals 

BearTax Screenshot
Source: BearTax

No long-term investor likes a bear market, but many professional traders love using BearTax. This tax software is ideal for traders who are active in the crypto market and do most of their trading on major exchanges. Indeed, BearTax is one of the few providers to offer special services for high-volume traders and trading bots.  

Whether you live in the USA, Canada, India, or Australia, BearTax can generate country-specific tax documents once you share your API and CSV files. Tax professionals also enjoy using BearTax because this platform puts a heavy emphasis on privacy. Professional accountants won’t have to ask new clients for as many personal documents or wallets, thus improving efficiency and trust. 

Just keep in mind that BearTax isn’t the best solution for those involved in DeFi. This site only has integrations with about 50 centralized exchanges and zero DeFi protocols. 

Features:

  • API and CSV integrations with over 50 exchanges 
  • Unique options for high-frequency traders and trading bots
  • Smart matching algorithms help recognize non-taxable crypto transfers
  • Auto-generated 8949 and Audit Trail
  • Works with TurboTax

Pricing:

  • Free (20 transactions) 
  • Basic (200 lifetime transactions): $49 per tax year
  • Plus (25,000 lifetime transactions): $149 per tax year
  • Pros (one million lifetime transactions): $499 per tax year 

In A Nutsehll

  • Transaction Limit: Up to 1,000,000
  • Pricing: From $0 per tax year
  • Supported Exchanges: 200+
  • Compatibility: TurboTax
  • Availability: Canada, United States, Australia and India

on BearTax’s website

7. CryptoTaxCalculator: Best for International Crypto Investors 

CryptoTaxCalculator Screenshot
Source: CryptoTaxCalculator

Sydney-based CryptoTaxCalculator says it takes a “remote-first” approach to its work culture. That’s certainly reflected in CryptoTaxCalculator’s supported countries list, as there are almost 25 locations where you could use this platform. No matter where you’re doing your crypto trading, CryptoTaxCalculator can help you track your portfolio.

Not only is CryptoTaxCalculator available in many nations, but it also has one of the widest ranges of integrations. Whether you use DeFi or centralized exchanges, chances are that CryptoTaxCalculator has a connection in its 500+ list of partners. Plus, CryptoTaxCalculator can integrate with popular crypto wallets and even NFT platforms like OpenSea.

Features:

  • Integrates with 500+ exchanges, DEXs, wallets, and NFT markets
  • Available in over 20 countries
  • Transfer matching and auto-categorization algorithms
  • Capital gains report, Form 8949, and income report available
  • Compatible with TurboTax

Pricing:

  • Rookie (100 transactions): $49 per tax year
  • Hobbyist (1,000 transactions): $99 per tax year
  • Investor (10,000 transactions): $189 per tax year
  • Trader (100,000 transactions): $299 per tax year

In A Nutsehll

  • Transaction Limit: Up to 100,000
  • Pricing: From $49 per tax year
  • Supported Exchanges: 450+
  • Compatibility: TurboTax
  • Availability: 22 countries

on CryptoTaxCalculator’s website

8. CoinTracking: Best for Traders Who Want Chart Analysis Tools

CoinTracking Screenshot
Source: CoinTracking

If you love charting patterns and pie charts, CoinTracking may suit your crypto investing style. Created in 2012, CoinTracking is one of the oldest crypto-specific tax platforms and has roughly 1.1 million users. 

One reason people enjoy using CoinTracking has to do with its comprehensive dashboard. On this page, you can scan through pie charts of your portfolio allocation, see a timeline of your trades, and analyze multiple graphs. Since CoinTracking has been in business for so long, it has extensive price history data, and it offers connections with hundreds of the biggest exchanges, wallets, and blockchains. 

Beyond its chart analytics tools, CoinTracking is well-known for its privacy-first approach. Impressively, you don’t need to submit an email to sign up for this platform. You also get access to multiple backups to keep your tax data secure. 

Features:

  • API and CSV integrations with over 100 exchanges, blockchains, and wallets
  • Extensive dashboard with pie charts, graphs, and personalized timeline
  • Access to analytics like chart trends, user statistics, and coin price calculators
  • Mobile app on iOS and Android
  • Sign up without sharing an email address

Pricing:

  • Free (200 transactions; only portfolio review)
  • Pro (3,500 transactions): $10.99 per tax year
  • Expert Tier 1 (20,000 transactions): $16.99 per tax year 
  • Expert Tier 2 (50,000 transactions): $21.99 per tax year 
  • Expert Tier 3 (100,000 transactions): $27.49 per tax year 
  • Unlimited: $54.99 per tax year 

In A Nutsehll

  • Transaction Limit: Unlimited
  • Pricing: From $0 per tax year
  • Supported Exchanges: 70+
  • Compatibility: TurboTax, and TaxAct
  • Availability: Over 200 countries

on CoinTracking’s website

9. Coinpanda: Best for Beginner NFT and Crypto Traders 

Coinpanda Screenshot
Source: Coinpanda

Coinpanda claims you can file your crypto taxes in less than 20 minutes using its intuitive platform, and, judging by this Scandinavian company’s streamlined design, it’s hard to argue with their marketing! 

In addition to uploading crypto transfers from hundreds of exchanges, Coinpanda makes it easy to submit NFT trading data, DeFi rewards, and wallet info. Unlike many other products that support NFTs, Coinpanda offers NFT tracking even in its lower-tier accounts. 

You’ll see your total portfolio on a clutter-free screen with pie charts and graphs. Even novices probably won’t have issues generating tax documents with this software. 

Even though Coinpanda has a beginner-friendly interface, it has many advanced features for futures and margins traders. People involved in mining crypto and staking will also love using Coinpanda’s platform. 

Features:

  • Connects with 500 exchanges and wallets via API and CSV files
  • Detailed capital gains report and Form 8949
  • Easy-to-read portfolio graphs and pie charts
  • Options for margins and futures traders
  • DeFi, NFT trading, and staking rewards calculated

Pricing:

  • Free (25 transactions) 
  • Hodler (100 transactions): $49 per tax year
  • Trader (1,000 transactions): $99 per tax year
  • Pro (3,000+ transactions): $189 per tax year

In A Nutsehll

  • Transaction Limit: Unlimited
  • Pricing: From $0 per tax year
  • Supported Exchanges: 500+
  • Compatibility: TurboTax, and TaxAct
  • Availability: Over 30 countries

on Coinpanda’s website

10. TaxBit: Best for Compliance and Customer Support 

TaxBit Screenshot
Source: TaxBit

If you’re a stickler for government compliance, TaxBit is your best bet. This prominent crypto tax software has countless certifications and partnerships with organizations like the US SEC and IFRS. TaxBit also holds SOC 1, SOC 2, and ISO 27001 accreditations to ensure customers’ info is safe. 

Another area where TaxBit excels is its customer care division. Even on the lower-priced plans, you will get access to live web chat with a TaxBit pro. For those who opt for the Pro account, TaxBit will provide full concierge service, a CPA review, and help with an IRS audit.  

On top of these standout features, TaxBit has an easy-to-navigate website with easy portfolio tracking, tax form generation, and API integration with over 500 exchanges and wallets. TaxBit also has an NFT Suite for customers who opt for higher-priced plans. As a bonus, each TaxBit plan offers customers unlimited transactions. 

Features:

  • Integrations with 500+ exchanges and wallets
  • Real-time charting data on your portfolio
  • Capital gains, Form 8949, and tax-loss harvesting
  • Live web chat with TaxBit employees
  • NFT, DeFi, and Metaverse suites

Pricing:

  • Network: Free (no tax forms)
  • Basic: $50 per tax year
  • Plus: $175 per tax year
  • Pro: $500 per tax year

In A Nutsehll

  • Transaction Limit: Unlimited
  • Pricing: From $0 per tax year
  • Supported Exchanges: 450+
  • Compatibility: TurboTax, and TaxAct
  • Availability: Worldwide

on TaxBit’s website

11. CoinTracker: Best for Institutional Trust 

CoinTracker Screenshot
Source: CoinTracker

CoinTracker began business in 2017, and it has since grown to become one of the most trusted names in crypto tax software. It’s no exaggeration to say CoinTracker is the most well-connected crypto tax software, especially in the private sector. Just a few prominent investors in CoinTracker’s platform include Coinbase, Kraken Ventures, and Intuit. CoinTracker also carries SOC 2 certification to improve trust.

When you explore its user-friendly interface, you’ll see why so many investors feel confident in CoinTracker’s platform. CoinTracker integrates APIs and CSV files with roughly 300 wallets and exchanges, and it tracks your portfolio in real-time. Users can generate all standard tax forms like capital gains and Form 8949 to either print out for your accountant or use electronically with TurboTax.

Features:

  • Manage and track portfolio on desktop and mobile apps
  • API and CSV file integrations with 300+ wallets and exchanges
  • IRS Form 8949, Capital Gains CSV, and Transaction History CSV
  • Advanced support for DeFi and margin trading
  • Export files to TurboTax or TaxAct

Pricing:

  • Free (25 transactions)
  • Hobbyist (100 transactions): $59 per tax year 
  • Premium (1,000 transactions): $199 per tax year
  • Unlimited: Case-by-case pricing 

In A Nutsehll

  • Transaction Limit: Unlimited
  • Pricing: From $0 per tax year
  • Supported Exchanges: 300+
  • Compatibility: TurboTax, and TaxAct
  • Availability: Canada, United States, United Kingdom, and Australia

on CoinTracker’s website

12. BitcoinTaxes: Best for Comprehensive Pricing Plan Options 

BitcoinTaxes Screenshot
Source: BitcoinTaxes

BitcoinTaxes may not have as many integrations as other crypto tax software, but it gives customers plenty of pricing options to consider. Whether you’re a passive “hodler” or a day trader, BitcoinTaxes has about a dozen different price plans to help customize your tax report. 

The prices in the snapshot below only cover individual investors (otherwise, our list would get way too long!). Customers should know BitcoinTaxes offers different “Trader” specific plans for US or Canadian residents who do high-volume transactions (between 50,000 and 1 million). You could also opt for “Full-Service” programs that include confidential consultations with tax professionals. 

If you don’t want to pay for professional guidance, BitcoinTaxes makes it easy to send your capital gains and Form 8949 through TaxAct, TurboTax, or H&R Block. You could also use BitcoinTaxes to figure out relevant data on mining revenue, margin trading, and staking rewards. 

Features:

  • Form 8949 in PDF format
  • Import unlimited transactions from about a dozen major exchanges
  • Calculate mining revenue and margin trading on Kraken
  • Capital gains and losses using FIFO or LIFO
  • Audit Defense Service in case of IRS audit
  • Works with TurboTax, TaxAct, and H&R Block

Pricing:

  • Free (20 transactions) 
  • Premium (1,000 transactions): $39.95 per year
  • Premium Extra (5,000 transactions): $49.95 per year
  • Deluxe (10,000 transactions): $59.95 per year
  • Trader (50,000 transactions): $129 per year
  • Trader (100,000 transactions): $189 per year
  • Trader (250,000 transactions): $249 per year
  • Trader (500,000 transactions): $379 per year
  • Trader (1,000,000 transactions): $529 per year
  • Trader (unlimited transactions): Negotiable rate

In A Nutsehll

  • Transaction Limit: Unlimited
  • Pricing: From $0 per tax year
  • Supported Exchanges: 21
  • Compatibility: H&R, TurboTax, and TaxAct
  • Availability: Worldwide

on BitcoinTaxes’ website


What to Look for in a Crypto Tax Software

As you scan through the many available crypto tax software, it can be challenging to tell which one is the right fit. However, you could use the factors listed below to narrow down your perfect program. 

Pricing 

When you’re buying a crypto tax software, you want to be sure you’re only spending for what you need. All major companies offering crypto tax services provide a few price plans tailored to different types of traders. Generally, the prices for these services go up the more transactions you’ve made per year. 

Take a close look at how each software calculates its prices and compare it with how many trades you’ve made per year. You should also look into the more advanced features that different companies offer at higher price points. Depending on how involved you are with crypto, you may only need the most basic services to help you file compliant tax documents. 

Supported Exchanges & Integrations 

It doesn’t make sense to buy a highly-reviewed crypto tax software if it doesn’t integrate with your exchanges. So, before researching different software providers, you should write down every exchange, crypto wallet, and DeFi protocol you’ve been using. 

Please cross-check that your crypto tax software has easy integrations with every name on your list. Typically, you should be able to link APIs, public wallet addresses, and CSV files to upload your yearly transactions. 

Tax Forms Included 

For American readers, the IRS Form 8948, Schedule D is the most significant document for filing crypto taxes. Since this form is so critical, it’s rare that a premier crypto tax software wouldn’t offer it to US clients — however, you should always verify beforehand just to be sure. 

While Form 8948 gets a lot of attention in the crypto tax industry, it’s not going to be enough for people living outside the USA. If you’re not based in America, you need to see where your crypto tax software is accepted and what international documents they provide. 

Accountant Access 

Not every crypto tax software offers professional guidance. Indeed, in most plans, you’ll only get a copy of your relevant tax documents. From there, you need to submit your paperwork through a platform like TurboTax or send them to an accountant. 

However, a few crypto tax platforms offer direct access to an expert accountant for a higher fee. This feature may be helpful if you have a lot of crypto transactions or “difficult-to-report” trades on DeFi or NFT platforms. Be sure to review the cost of hiring a pro accountant through tax software.  

Customer Support 

Customer service is one of those features people don’t seriously consider until they really need it. Since crypto is such a new industry, please don’t assume every crypto tax software will provide the same quality of care as a brand like Intuit. In some cases, crypto tax providers don’t have direct telephone service. 

If possible, test out the responsiveness of your crypto tax software’s helpline before signing up. You may also want to take a peek at what verified customers have to say about interacting with each company on sites like TrustPilot. As a final note, most crypto tax platforms give different degrees of customer support depending on what price tier you select. 

Security Features 

You have to be extra wary about cyberattacks when sharing personal and financial data. A great crypto tax software should use the latest in encryption and firewall technology to protect your data. High-quality companies should also provide customers with 2FA to add extra security to their accounts. 

Credibility & Track Record 

Although cryptocurrency is a new industry, some crypto tax companies have been around longer than others. Visit each crypto software provider’s “About Us” page to see how long they’ve been in business. You should also research any official accreditations and partnerships your company has to assess its track record.

Tax Loss Harvesting Functionality

Nobody loves losing money, but it’s even worse if you don’t collect tax rebates on your losing trades. If you took a loss this year, you must ensure your crypto software has a “tax-loss harvesting” feature. This function will point out how much you lost in the market and how much you could recover this tax season. 

Not all crypto tax software offer “tax-loss harvesting” as a base-rate feature. In some cases, you need to opt for a higher-tier program to take advantage of this data. However, depending on how much you lost in the crypto market, it may be worth paying up for this service. 

Data Importing 

As you’re looking through the supported exchanges and wallets, please figure out how you integrate your preferred platforms with your crypto tax software. Do you need to provide API keys, CSV files, or public wallet addresses? Does your platform make it intuitive to import these keys or files? 

Also, once you’ve put all your data into the tax software, will you get a detailed view of your portfolio? Many crypto tax software double as portfolio trackers, which may be beneficial after tax season ends. Be sure you figure out what analytics your tax software provides. 


Crypto Tax Tips to Keep in Mind

Before you make a move with your cryptocurrencies, you should always consider the tax implications. Here are a few quick tax-related tips to keep in mind while trading and using your crypto. 

  • Trading Activity & Fees: Whenever you sell a crypto into fiat or another crypto, that’s a taxable event. However, you may recover some money by reporting exchange fees and gas fees. Be sure you know whether your crypto tax software can monitor trading fees on centralized exchanges and DeFi. 
  • Crypto Income Tax: In addition to selling crypto, you can be taxed for earning income in crypto. So, if you mine crypto, mint NFTs, or use play-to-earn games like Axie Infinity, you need to report it to the IRS. Also, you must tell tax authorities whether you’ve received crypto from your employer or you accept crypto at your business, 
  • Staking Rewards: Anyone involved in staking coins on native blockchains (e.g., Polkadot) or exchanges and lending platforms (e.g., BlockFi) must report their income to the IRS.  
  • Crypto Gifts: Whether you give or receive a gift in cryptocurrency, there may be tax implications. Please ensure your crypto tax software can clarify gifts when reporting your crypto income. 
  • Crypto Donations: Similar to giving with fiat currency, you may lighten your tax burden if you’ve used crypto to support charities. Please don’t leave out any crypto-related donations on your tax forms. 
  • Asset Conversions: When you convert crypto into fiat or other asset classes (e.g., stocks, bonds, or precious metals), you will be taxed. For instance, there will be tax implications if you use an anything-to-anything platform like Uphold to trade Bitcoin for Google shares.   
  • Crypto Capital Gains & Losses: You’ll need to show your total gains and losses in the crypto market each tax year. Your tax burden will depend on whether you’re subject to short-term or long-term capital gains taxes and how substantial your winnings or losses were. 

FAQs: Best Crypto Tax Software 

Picking the perfect crypto tax software can be challenging, especially if you’re new to crypto trading. Hopefully, the FAQs below will clear up common issues people have when sorting through tax software providers. 

What Is Crypto Tax Software?

Crypto tax software refers to a platform designed to help you track and report your cryptocurrency transactions. There are many different crypto software providers, but they should all supply you with compliant tax documents that highlight your crypto trades, gains, and losses. You could then use these documents to file taxes with a professional accountant or with tools like TurboTax. 

How Does Crypto Tax Software Work?

Most crypto tax software providers track your trading history by linking with API keys, public addresses, or CSV files from your exchange, crypto wallet, or DeFi protocol. A professional crypto tax software can distinguish between taxable events (e.g., selling or swapping crypto) versus non-taxable events (e.g., transferring your tokens to a private wallet).

Can TurboTax Handle Cryptocurrency? 

TurboTax can handle cryptocurrency taxes, but it currently only imports trading data from about 15 exchanges. While you could manually fill out tax forms in TurboTax, that can be next to impossible if you’ve done a lot of trading. 

Thankfully, TurboTax has partnered with most top-tier crypto tax platforms to simplify data importation. Please double-check that your crypto software provider has a partnership with TurboTax if you prefer using this platform. 

Does H&R Block Handle Cryptocurrency? 

H&R Block can handle cryptocurrency taxes, but it won’t supply you with all the documents you need to file them. If you like working with H&R Block, you should find a crypto tax software that has a partnership with the company. You could also meet with an H&R Block “Tax Pro” to discuss what forms you need to complete your crypto taxes. 

Do I Have to Pay Taxes on Crypto? 

If you did anything besides buying, holding, and transferring crypto to a private wallet, you have to pay taxes. The taxes you’ll pay depend on countless factors, including how long you held your tokens and where you received them. 

For instance, people who earn crypto as their income must report it as a part of their wages. However, you’ll be subject to short-term capital gains if you bought and sold crypto within less than a year. After holding for a year, those who sell their crypto have to file for long-term capital gains. 

Please remember that crypto taxation also includes activities like DeFi staking, NFT trading, and mining. 

Do You Need Separate Software to File Crypto Taxes? 

You don’t need a separate software to file crypto taxes, but it can make life a lot simpler. For people who keep good records and only have a handful of crypto transactions, it may be viable to file taxes without relying on crypto tax software. However, the more involved you are with the crypto market, the more difficult it will get to track your trades and determine your cost basis.

Crypto tax software automatically crunches all of the numbers and organizes your gains & losses in a neat document. While it costs extra for this service, it usually pays off for crypto traders during tax season. 

What Forms Do I Need to File Crypto Taxes? 

The most important document for American crypto investors is Form 8949/Schedule D. This document will show your total gains and losses for crypto trades throughout the year. You may also have to report your gains and losses on Form 1040/Schedule D. 

While Form 8949 is the most significant for American crypto traders, there are cases where you may need additional documents. For instance, if you received crypto from your employer, you’ll need to report that on your Form 1040. People living outside the USA will be responsible for the tax documents recognized in their home country. 

How Is Crypto Taxed in the US? 

The taxes you pay on your crypto depend on how you used it, how long you held it, and where you got it from. For instance, if you buy and sell crypto for a profit on an exchange, you’ll have to pay the short-term or long-term capital gains associated with your income bracket. Short-term capital gains are for trades in less than one year, while long-term gains are over one year. 

However, if you receive crypto from an employer or a freelancing job, this crypto could be taxed as a salary. There are also unique taxation rules for staking, NFT trading, and mining crypto. 

How Do I Convert Crypto to Cash Without Paying Taxes?

You could only get your crypto “tax-free” if you open an IRA that offers crypto trading like BitcoinIRA, Alto IRA, or iTrustCapital. Honestly, there are tax implications no matter which IRA plan you use, but this strategy is the best way to invest in crypto with minimal taxes. 

Outside of using crypto IRAs, you can’t escape taxes when transferring your crypto into cash. It’s always cheaper and safer to comply with tax regulations than risk an IRS audit. 

Is Crypto Tax Software Safe? 

As long as a crypto tax software has a solid reputation and a long track record, it’s safe to use. Millions of crypto investors have safely used crypto tax software in the past few years, and many of today’s companies have high compliance standards. 

However, just because most crypto tax platforms are safer nowadays doesn’t mean they’re all legit. You should do plenty of research on companies you’re interested in to ensure they have high standards for security. 

Is Crypto Tax Software Free? 

Most crypto tax sites let you sign up and track your portfolio for free. However, if you want the official tax documents, you’ll usually need to pay a flat fee each year. The amount you spend on your tax documents depends on how many trades you make per year. People who are more active in the crypto market will have to pay more for their IRS documents.   

FYI: A few crypto tax software companies offer complimentary tax forms for people who make below 25 crypto transactions. If you’re a low-volume crypto trader, you should search for these affordable options. 

Are Crypto to Crypto Trades Taxed?

If you swap one crypto for another token, you have to report it and pay taxes. Please don’t think you could avoid capital gains taxes by constantly switching into stablecoins rather than USD.

Final Thoughts

There are a ton of nuances to crypto taxation. However, using a crypto tax software can simplify figuring out what you owe the government. Be sure to look for a crypto tax solution that can calculate all of the gains & losses you’ve made in all the activities you’ve been involved with. 

Please remember that all of the info above is solely for educational purposes and is not professional tax advice. Please speak with an accredited accountant for personal financial advice.

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