Comprehensive Review Of The Best Crypto Tax Software Solutions 2022

Do you have a Crypto Tax Software Solution?

Tax season is upon us. If you are like most people, it means you’ll be shelling out money to Uncle Sam (or not if you’re doing something illegal). And for many people who have taken advantage of the rise in cryptocurrency prices last 2017, this also means that they will be filing their crypto taxes. Your perfectly optimized content goes here!

• You don’t have to report crypto if you:
  • Just bought crypto
  • Only held onto the crypto
  • Transferred crypto from one wallet to another
• These transactions are property and their earnings as capital gains that need reported
  • Crypto sales
  • Crypto exchanges
  • Crypto conversions
• These need to be reported in the other or self-employment income section
  • Received crypto as payment
  • Mined crypto
  • Earned crypto through exchange award programs

I don’t have to file this year.  So, do I really need to worry about tax solutions now?

Yes, you do because even if you don’t need to report crypto on your taxes this year you still have to keep a log of each and every transaction you have.   This can become very time-consuming doing it on your own without one of the tax solutions.    You will need to keep track of what type of transaction was made, when it took place, on which exchange, how much it cost, # of coins, type of coin, & any fees associated with the transaction.  

Then when you go to sell that coin you have to go back and find the purchase information and then report the purchasing info along with the selling info.  Most use the system of first in is first out which be years between transactions and because of all of this record-keeping any solution even the free ones could help prevent the headaches that would be sure to come without some type of solution that will auto track this for you. 

If you have to report, How do you pay your crypto taxes?

People who invested in cryptos last year would most likely need to file an income tax return (this is different from a capital gains tax because it’s automatically applied once a certain amount is reached during a time frame).

How do the Crypto Tax Software solutions work?

Crypto Tax software is primarily a third-party data collection system that links a user’s cryptocurrency exchange and wallet via annual subscriptions. Once the connection has been completed, the software will verify the transaction and create a detailed report showing gains and losses. The reports conform to internal rules for the IRS. The software is costly and requires time from the individuals to complete the cryptocurrency tax return.

To help you keep a log of your transactions and with the filing of the tax forms,  here’s a list of the Best Crypto Tax Software Solutions below:

13 of the Best Cryptocurrency Tax Software Solutions

1. Koinly

Koinly allows you to automatically import transactions from your exchange and wallets. You can then edit and optimize your tax return. After which, the program will automatically compute the Tax owed and it’s continuously updated over time. You can also use it to track your current portfolio value in real-time. Best of all, Koinly comes with an online dashboard that you can access from anywhere via desktop or mobile device.

Key Features:

– Import transactions from exchanges and wallets

– Edit and optimize tax return

– Automatically compute taxes owed

– Track portfolio value in real-time

– Online dashboard

Pricing

Koinly offers a free trial for its software. After the trial, you can choose from one of its two paid subscription plans: Lite and Pro. The Lite plan is $79/year and allows you to report up to 500 transactions. The Pro plan is $239/year and allows you to report an unlimited number of transactions.

2. TokenTax

TokenTax is an automatic cryptocurrency tax calculator and portfolio tracker. It allows you to save time by automatically importing your transactions from the exchanges or wallets that you use. It calculates capital gains reports based on IRS standards. You can also purchase Boss tokens within the platform at the same rate as outside which helps you save money.

Key Features:

– Automatically import transactions from exchanges and wallets

– Calculates capital gains reports based on IRS standards

– Purchase Boss tokens in the platform at the same rate as outside which helps you save money

Pricing

TokenTax offers two plans Software: Free Plan and Pro Plan. The Free Plan is ideal for users who have less than 15,000 transactions. It allows you to automatically import up to 500 transactions per month with no transaction limitations. The Pro Plan costs $30/month and offers fee-free access on US exchanges. Best of all, it offers unlimited imports.

3. ZenLedger

ZenLedger allows you to import transactions directly from your exchanges and wallets (including Binance, Bittrex, Coinbase, Crypto Capital, Kraken etc.). It automatically extracts key information that will be vital for your tax return. Best of all, ZenLedger automatically tracks your cost basis and profit/loss for every single transaction.

Key Features:

– Import transactions from exchanges and wallets

– Automatically extracts key information needed for tax returns

– Tracks cost basis and profit/loss on every transaction

Pricing

ZenLedger offers a free plan.

4. Accointing

Accointing allows you to automatically import transactions from exchanges and wallets (including Binance, Bittrex, Coinbase, Crypto Capital, Kraken etc.). Accointing offers deep integration reporting tax reports, cost basis tracking, and cryptocurrency tax filing. Best of all, the software is ultra-secure thanks to AES 256 encryption (the de facto standard).

Key Features:

– Automatically import transactions from exchanges and wallets

– Deep integration for reporting tax reports, cost basis tracking, and cryptocurrency tax filing

– Ultra-secure thanks to AES 256 encryption

Pricing

Accointing offers a free plan that limits you to 300 transactions.

5. TaxBit

Best Cryptocurrency Taxes Software

TaxBit will help you save time and reduce the risk of errors. Best of all, TaxBit analyzes your entire portfolio so you can be rest assured knowing everything is accurate. It automatically computes capital gains reports based on IRS standards. You’ll get a 100% accurate calculation as it uses leading indicators that information from the world’s largest marketplaces

Key Features:

– Automatically gather transactions from exchanges and wallets

– Maintain a watchlist for current crypto prices

– Compute capital gains reports based on IRS standards

Pricing

TaxBit offers two pricing plans. The “Premium” plan is more expensive at $69/month, but it’s better for those who have more than 50 transactions a month. The “Light” plan is free and best suited for those with less than 50 transactions per month.

6. Cointracking

Cointracking Taxes Software is arguably one Best Cryptocurrency Taxes Software that has been around for quite some time and it’s still going strong today. Automatically imports transactions from exchanges and wallets (including Binance, Bittrex, Coinbase, Crypto Capital, Kraken etc.).

Key Features:

– Automatically imports transactions from exchanges and wallets

– Detailed reports for tax time Best Cryptocurrency Taxes Software

– Easy to use

Pricing

Best of all, you get full access to Best Cryptocurrency Taxes Software for free during a 14-day trial Best Cryptocurrency Taxes Software. After that, the software is $149

7. CoinTracker

Best of all, it automatically tracks your cost basis for you, which means you won’t have to calculate anything manually. Best

Crypto.io Taxes Software offers Cryptocurrency Taxes Software that will automatically import transactions from exchanges and wallets to the software. You can manually enter your trades if needed. Best of all, Crypto.io analyzes data around the globe.

Key Features:

– Automatically import transactions from exchanges and wallets

– Ease of use

Pricing

Best of all, Taxes Software offers a free plan that limits you to 2025 transactions.

8. BitcoinTaxes

BitcoinTaxes allows you to import transactions from your exchanges and wallets. It can then automatically compute your capital gains and income, which you will need to report on your tax return. Best of all, BitcoinTaxes comes with an online dashboard that you can access from anywhere via desktop or mobile device.

Key Features:

– Import transactions from exchanges and wallets

– Automatically compute capital gains and income

– Online dashboard

Pricing: free to $299 for a single filing up to $999 for unlimited filings. Paid subscriptions are available for multiple filers. You can see their full pricing schedule here .

9. BearTax

BearTax is another Best Cryptocurrency Taxes Software that helps you automatically import transactions from your exchanges and wallets into the BearTax reporting platform. You can then edit and optimize your tax return to increase deductions or lower taxes owed. Best of all, BearTax comes with an online dashboard that you can access from anywhere via desktop or mobile device.

Key Features:

– Automatically import transactions from exchanges and wallets

– Edit and optimize tax return

– Online dashboard

Pricing: BearTax offers a free trial for its software. After the trial, you can choose from one of its two paid subscription plans: Basic Plan ( $39 ) or Advanced Plan ( $69 ). The Basic Plan allows you to report up to 100 transactions. The Advanced Plan allows you to report an unlimited number of transactions.

10. Tax.Crypto

Tax.Crypto helps you automatically import transactions from several exchanges, including Coinbase and Bitstamp through their API (you can authorize each one by logging in with your account). Best of all, Tax.CryptoCompare comes with an online dashboard that you can access from anywhere via desktop or mobile device.

Key Features:

– Automatically import transactions via API (with multiple exchanges supported)

– Allows manual entry as well

Pricing: Tax.CryptoCompare offers a free version of its Best Cryptocurrency Taxes Software that allows you to track an unlimited number of wallets and transactions for personal use. For businesses, they offer plans that start at $9/month.

11. Crypto Tax Calculator

Crypto Tax Calculator has been in the market for a while. It allows you to input your wallets and exchanges where you made some transactions so it can automatically import them. After which, you can use their tax calculator to determine how much capital gains tax is owed by you. Best of all, this software also offers an online dashboard that shows your total net worth and allows you to organize all your assets.

Key Features:

– Automatically import transactions from wallets and exchanges

– Use tax calculator to determine capital gains tax owed

– Online dashboard that shows the total net worth of a person or family

Pricing: Crypto Tax Calculator is a free program. However, there is a service that you can pay for which would help answer questions about your tax return.

12. Gilded

Gilded offers support for three different cryptocurrencies: Bitcoin, Ethereum, and Litecoin. Best of all it also allows you to import the trades from your exchange so you don’t need to manually enter each transaction. Like most software in this list, you can also use it to track your portfolio’s value in real-time.

Key Features:

– Import trades from exchanges where the trades happened

– Allows you to enter transactions manually if need be

– Track portfolio value in real-time, updated every 15 minutes

Pricing: Gilded offers a free plan and an upgraded plan. The upgraded plan costs $9/month and has the following features:

– Unlimited input for transactions

– Live Tax Reporting calculations

– Data export bandwidth of 5MB monthly

13. Coinpanda

Coinpanda allows you to import transactions from three different exchanges. Best of all, it also has a tax calculator which you can use to compute the capital gain owed. Best of all, this software is free to use with no hidden payment required.

Key Features:

– Automatically import trades

– Use tax calculator to compute capital gains owed

– Free to use

Pricing: Coinpanda is a free program. However, you are required to pay for any requests or questions that need manual time of the support team of the software. They charge 0.1 ETH for this service.

Why should I use Cryptocurrency Tax software?

Taxes are an important part of cryptocurrency investing. As cryptocurrencies continue to rise in value, taxes have become a hot topic among investors who want to stay on the right side of the law.

It’s absolutely possible for you to maintain detailed records of every one of your transactions and file it all away at tax time (or pay someone else do it for you). However, this choice leaves a lot of room for error and can lead to some major headaches down the line.

With tax reporting software like the ones above, you can avoid all that by automating the entire process. All you need to do is enter the long-term capital gains rate, and the software will do everything else for you. You can even track your net worth in real-time if you want to see your cryptocurrency’s progress at a glance. Best of all, this software also offers an online dashboard that shows your total net worth and allows you to organize all your assets.

What should I consider when choosing the right Crypto Tax software?

– What coins can it track?

– Can I import trades from exchanges where the trades happened automatically?

– Can I manually add a transaction if need be?

– Does it offer a tax calculator to compute capital gains owed?

– Is the software free or do you pay a subscription fee after a fixed trial period of time?

– What features does the software offer?

– How is support handled if I have a question or concern?

– Is it easy to use?

What else should I know about Crypto Tax software?

This sort of tax reporting is accomplished via automated importing on transactions from exchanges where you bought/sold cryptocurrency. It imports the trade data (date, price) and calculates gains/losses. Best of all, it does this for you in real-time so there is no need to manually enter each transaction at tax time. Best of all, these exchanges will need to write down transactions that include cryptocurrency purchases or sales (when you spend crypto for something like a house, for example). 

Best of all, you should receive a 1099-K from the exchanges where you were trading. Best of all, it is an easy way to automate your tax reporting so that there are no mistakes at tax time. Best of all, this software makes filing taxes on cryptocurrency gains extremely simple by automatically importing trade data and tracking portfolio balances. Best of all, it is useful for those who trade cryptocurrency frequently and need to report short-term and long-term gains. Best of all, the solution’s tax engine handles multiple cryptocurrencies and automatic importing from exchanges (if you choose) where you bought and sold crypto. Best of all, there is no fee to use Gilded as

Conclusion on the Best Crypto Tax software solutions.

These different solutions are reasonably priced for the amount of time they will save you from manually tracking your transactions. They take the headache out of reporting and accurately filing your taxes and income so you can potentially pay less than you would have without their services. Best of all, they take care of calculating how much your cryptocurrency gains will be taxed so that you don’t have to do it yourself. These tax solutions are available for you to try for free, so you can see how they work before committing. Plus, these solutions are user-friendly tax tools that provide real benefits when it comes to reporting your taxable income.

 

Frequently Asked Questions

What is Virtual Currency?

• Virtual currency is a digital representation of value that can be digitally traded and functions as: A medium of exchange; and/or A unit of account; and/or A store of value; but does not have legal tender status (determined by individual countries).

Also, check out Best Crypto Credit Cards

How is Virtual currency treated for Federal income tax purposes?

• Virtual currency is treated as property and general tax principles applicable to property transactions apply to transactions using virtual currency. For more information on the tax treatment of virtual currency, see Notice 2014-21. For more information on the tax treatment of property transactions, see Publication 544, Sales and Other Dispositions of Assets.

How do I determine if my gain or loss is to be reported on your US Federal Taxes as a short or long-term capital gain or less?

• If you held the virtual currency for one year or less before selling or exchanging the virtual currency, then you will have a short-term capital gain or loss. If you held the virtual currency for more than one year before selling or exchanging it, then you will have a long-term capital gain or loss. The period during which you held the virtual currency (known as the “holding period”) begins on the day after you acquired the virtual currency and ends on the day you sell or exchange the virtual currency. For more information on short-term and long-term capital gains and losses, see Publication 544, Sales and Other Dispositions of Assets.

What website should I visit to address all of my US IRS virtual currency questions for Individual taxpayers?

• You should this IRS site to review the questions to make sure you are filing your taxes in accordance with US law.  https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions

What website should I visit to address all of my US IRS virtual currency questions for Business taxpayers?

• You should this IRS site to review the questions to make sure you are filing your taxes in accordance with US law.  https://www.irs.gov/businesses/international-business

Which crypto tax software is the best?

• CoinTracking.info – Free trial available, paid plans start at €74.99 per year (billed annually) for up to 500 transactions. Each additional transaction above 500 is billed at €0.50 (per year). The price goes down when billed monthly.

Is crypto tax software accurate?

• In general, this type of software is accurate when used correctly. If you forget to add a transaction in the software, it could lead to an incorrect calculation. Best of all, these tax solutions are user-friendly and easy to use so that there will be no mistakes involved when filing your taxes at tax time. Best of all, they have customer support to assist if you have any questions. Best of all, this software makes filing taxes on cryptocurrency gains extremely simple by automatically importing trade data and tracking portfolio balances. Best of all, it is useful for those who trade cryptocurrency frequently and need to report short-term and long-term gains. Is online tax reporting the best option?
• It depends on your situation. Best of all, it is an easy way to automate your tax reporting so that there are no mistakes at tax time. Best of all, this software makes filing taxes on cryptocurrency gains extremely simple by automatically importing trade data and tracking portfolio balances. Best of all, it is useful for those who trade cryptocurrency frequently and need to report short-term and long-term gains. Best of all, there is no fee to use Gilded as it is donation-based. Best of all, the solution’s tax engine handles multiple cryptocurrencies and automatic importing f

Can TurboTax handle cryptocurrency?

• TurboTax Online is now the authority in crypto taxes with the most comprehensive import coverage, including the top 15 exchanges. Whether you are investing in crypto through Coinbase, Robinhood, or other exchanges TurboTax Online can seamlessly help you import and understand crypto taxes just like other investments.

The methodology used for the Best Crypto Tax Software Solutions:

Looked at each solution’s features, services, pricing structure, and support in terms of guidance for users who need help understanding the complexities of cryptocurrency taxation. We also considered the security features offered by each exchange.