*This article is not meant to replace financial or investment advice. Please seek help from a financial advisor if you need financial assistance.
(Ad) Calculating crypto taxes with the IRS can be complicated, especially if you’ve been doing a lot of crypto trades. Any gains made from the sale of digital assets may be subject to capital gains tax. Crypto tax software can help both investors and traders get ready for tax season and properly report the profits and losses from crypto transactions in recent years.
Cryptocurrency tax software can automate tedious tasks and provide you with ready-to-file documentation. Generally, the tax software pulls data from your exchanges and wallets. The program then compiles a transaction history filled with records of your crypto gains and losses.
There are a number of cryptocurrency tax software options online that seem reliable and reputable. To save you time and effort, we have rounded up the best crypto tax software that offers the tools and features needed to file your taxes. We compare the recommended tax software across multiple parameters, including user experience, customer support, pricing, and level of efficiency for your entire crypto transaction history.
So, what are the best crypto tax software programs? Find out here
Site Best For CoinLedger Overall best crypto tax software Koinly Best integration with crypto exchanges BearTax Best for data security TokenTax Best for complex crypto taxes ZenLedger Best for precise crypto tax reports CryptoTaxCalculator Best cryptocurrency tax calculator
CoinLedger, previously known as CryptoTrader.Tax, is an excellent crypto tax software that will help you in calculating crypto taxes. The program will crunch all the numbers and quickly generate tax reports to submit to the IRS. It supports nearly all tax documents, including IRS form 8949, short- and long-term sales tax reports, crypto income reports, international taxes, and more.
CoinLedger is easy to use, offers accurate data and reporting, and integrates with other tax software like TurboTax and TaxDirect. It also integrates 100 crypto exchanges and wallets, supporting Ethereum blockchain, NFT transactions, and more.
This crypto tax software has a dedicated Help Center, where tax professionals help answer any crypto tax-related questions and offer advice for your crypto tax reports. There are step-by-step guides for getting started on the platform, importing and reviewing your data, filing tax reports, and managing account settings and data security.
Overview
Starting Price: $49 per year
Number of Transactions: Starts from 100 transactions
Tax Software Connections: TurboTax Online and Desktop and TaxACT
Free Trial: Yes
Features
Extensive crypto tax reporting
Complete tax-loss harvesting tool
NFT tax software and app interface
TurboTax Online and Desktop integration
International support and tax professional suite available
Pricing
CoinLedger pricing is very affordable and even offers a 14-day money-back guarantee.
Users can also test the crypto tax calculator for free. However, if you want to preview or download tax reports, you will have to sign up for one of the many pricing tiers offered.
Hobbyist: $49 per tax year for 100 transactions
Day Trader: $99 per tax year for 1,500 transactions
High Volume: $199 per tax year for 5,000 transactions
Unlimited: $299 per tax year for unlimited transactions
All plans offer free portfolio tracking, data import, unlimited exchanges and revisions, and more.
Pros
Affordable crypto tax software
Simple tax calculation process
Multiple integrations available
Cons
No margin or futures support
No direct filing of tax returns
Limited customer support for lower-priced plans
Koinly is one of the most popular tax software solutions available today. The program is affordable, easy to use, and delivers comprehensive tax calculations within 20 minutes or less. It also can connect to all of your wallets, exchanges, and blockchain addresses.
Leveraging key insights across your entire crypto transaction history, Koinly helps you file taxes accurately and efficiently. This crypto tax software offers multiple features, including an automated data importing tool, to ensure you’re not paying a penny over what you owe to the IRS. Once all data is properly imported, users can easily track all fees and reconcile information on their tax report in just a few clicks.
Koinly also has advanced transaction filtering, where you can quickly filter results according to gains and set notifications according to balance status. Beyond this extensive feature list, this crypto tax software offers several resources to help customers with tax filing. This includes a dedicated Help Center with extensive tax guides and an insightful blog with the latest news and advice on cryptocurrency taxes.
Koinly even has discussion forums on the site, where active crypto traders can engage with the community and service. Top categories include product announcements and updates, questions and issues, feature requests, and site feedback.
Overview
Starting Price: $49 per year
Number of Transactions: Up to 10,000 with the free plan
Tax Software Connections: TurboTax, TaxACT, and H&R Block
Free Trial: Yes
Key Features
Connects with 353 crypto exchanges, 74 wallets, and 14 blockchain addresses
Automatically syncs data from various sources
Supports exports to external tax software like TurboTax, TaxACT, and H&R Block
Real-time insights for portfolio tracking, including profits and losses
Available in over 20 tax jurisdictions, including the US, UK, Germany, and France
Pricing
Koinly offers a completely free plan for up to 10,000 transactions, with extensive portfolio tracking capabilities included. With the package, however, you won’t have access to international tax reporting or audit reports. Here are the paid plans and their offerings
Newbie Plan: $49 per year for 100 transactions
Hodler Plan: $99 per year for 1,000 transactions
Trader Plan: $179 per year for 10,000 transactions
Both free and paid plans include unlimited exchanges and wallets, portfolio tracking, capital gains tax preview, and avalanche trades, as well as DeFi, margin trades, and futures.
Pros
Dedicated discussion forums for customer feedback and questions
Super-fast service to pay taxes
100% accurate audits
Cons
Does not accept cryptocurrency as a service payment
No independent tax-loss harvesting tool
Tax reports are not included in free plans
BearTax is another one of the best cryptocurrency tax software providers on the market. It has all the features and tools needed to calculate and pay taxes quickly and accurately. This robust platform is built for millions of transactions per minute, eliminating the need for manual calculations and spreadsheets.
BearTax brings all of your trades from nearly every crypto exchange using API or file uploads. The software then reviews and assigns the right prices to your transactions and processes them according to FIFO or LIFO methods. Once complete, all tax documents and IRS forms are automatically generated and sent to tax attorneys or other tax software, like TurboTax and TaxACT.
While this is considered a global product, BearTax offers local support teams across the globe. The software is currently available in the US, Canada, Australia, and India. Users can choose their country during the signup process and all accurate tax rules are auto-assigned to the account.
Overview
Starting Price: $49 per year
Number of Transactions: Up to 20 with the free plan
Tax Software Connections: TurboTax and TaxACT
Free Plan: Yes
Key Features
Intelligent system for reporting income into various categories, including gifts, staking rewards, airdrops, hard forks, referrals, etc.
Smart matching algorithm that helps users match transfers across exchanges regardless of fees and block time delays
Review transactions before they’re processed and define the right cost basis for every deal
Curated historical pricing for every cryptocurrency coin across thousands of exchanges, with no daily averages
High-frequency traders and bots access trades from exchanges via API and match them appropriately to generate a gain/loss statement
Quick imports available from multiple exchange accounts via API or CSV
Pricing
BearTax offers simple, fair pricing that’s based on the number of transactions made. All users can preview gains and losses according to digital assets for free. To download tax documents, however, you will need to upgrade to a premium package.
Basic Plan: $49 per year for up to 200 lifetime transactions
Plus Plan: $149 per year for up to 25,000 lifetime transactions
Pro Plan: $499 per year for up to 1 million lifetime transactions
All three plans include supported exchanges, automated IRS 8949 document, exports to TurboTax Online/Desktop, and shareable options with an accountant.
Pros
No paywalls
Support from tax professionals is available 24/7
Several automation features
Cons
Support for fewer markets, around 50 exchanges
Not available in some countries
TokenTax is an excellent platform to file crypto taxes, generate a cryptocurrency audit trail, and access international gain/loss reports. Like other crypto tax software solutions, TokenTax also has a tax-loss harvesting feature and margin trading support.
What makes this platform unique is that it’s a full-fledged crypto tax accounting firm, not just a crypto tax calculator software. Because it is a full-service crypto tax accounting firm, users can choose to file directly through TokenTax or different providers, like TurboTax.
The company has several years of experience in the industry and provides a platform that’s proficient across Crypto, DeFi, and NFT sectors. TokenTax’s services are more reliable, comprehensive, and accurate than some of its competitors. It also seamlessly integrates with wallets and digital assets, so you don’t have to stress about transferring mountains of data into the platform.
TokenTax is a good crypto tax software for all types of traders ― from amateurs to professionals. For investors with more complex filing needs, the platform offers advanced reconciliation services and crypto-savvy tax professionals. They are well-equipped to handle data with missing information, high transaction volumes, cross-chain transactions, and enterprise-level situations.
Overview
Starting Price: $65 per year
Number of Transactions: Starting at 500 transactions
Tax Software Connections: TurboTax
Free Trial: None advertised
Key Features
Automatically syncs your wallets to import transaction history, which eliminates the need for manual data entry and makes finding and fixing errors easier
Real-time tracking for your tax liability and reports
Automatically generates every tax form required to complete your filings — including Form 8949, Schedule D, FBAR, international forms, and more
Pricing
TokenTax offers multiple plans that cater to different levels of experience and service needed
Basic Plan (for casual Coinbase investors): $65/tax year for up to 500 transactions
Premium Plan (for investors operating across exchanges and platforms): $199/tax year for up to 5,000 transactions
Pro Plan (for investors with high trade volume across exchanges and platforms): $799/tax year for up to 20,000 transactions
VIP Plan (for advanced investors who want expertly prepared tax returns): $3,499+/tax year for up to 30,000 CEX transactions
Pros
Great customer support team filled with tax professionals
Numerous integration options with popular exchanges
International support for crypto transactions
Cons
No free plan or free trial offer
The basic plan has few features
Confusing prices for VIP plans
If you’re looking for an all-in-one solution for your crypto taxes, make sure to check out ZenLedger. This crypto tax software is great for tracking your transactions, monitoring crypto gains and losses, and getting accurate returns based on capital gains.
The platform interface is user-friendly and simple to use. All you have to do is import your crypto transactions, review the data, and download the proper tax forms. ZenLedger supports up to 400+ exchanges and more than 30 different DeFi protocols. It’s easy to file your taxes no matter where or how you invest your money.
ZenLedger also has an excellent customer support department. A crypto tax expert will be available to answer questions or address concerns on crypto taxes, crypto exchanges, crypto income, etc. They are available 7 days a week via chat, phone, or email.
Overview
Starting Price: Free plan available
Number of Transactions: Starting from up to 25
Tax Software Connections: TurboTax
Free Trial: Yes
Key Features
Tax-loss harvesting tools and detailed reports aid smarter decisions when trading
Unified spreadsheet available for every year’s past transaction history in one easily accessible place
Two-factor authentication login process to help keep data secure and transactions private
More than 50,000 positive crypto tax software reviews available to read directly on the website
TurboTax integration that quickly uploads transactions from the ZenLedger crypto tax tool
Pricing
ZenLedger offers competitively priced crypto tax software plans, with options to save 20% on the total price when you purchase multiple years in advance. There is also a free trial period and free plan available.
Free: $0 per year for up to 25 transactions
Starter: $49 per tax year for up to 100 transactions
Premium: $149 per tax year for up to 5,000 transactions
Executive: $399 per tax year for up to 15,000 transactions
Platinum: $999 per tax year for unlimited transactions
All plans include a generous 1-year refund policy, detailed reports, tax pro access, unlimited exchanges, tax-loss harvesting, and more.
Pros
NFTs and DeFi are supported with tax professional prepared plans
Fast and reliable service
Two-factor authentication for extra account security
Cons
Local tax forms are only available for US-based users
CryptoTaxCalculator is a great option if you have complex crypto taxes and require an advanced crypto tax calculator. No matter how intricate your taxes are, this tool accurately evaluates capital gains, determines your tax obligations, and helps you save money where possible.
CryptoTaxCalculator is a globally recognized software. The company offers its services to various countries across the globe, including the United States, United Kingdom, Greece, Portugal, Japan, and many more.
The software seamlessly integrates across popular exchanges and utilizes key data points for very detailed calculations. CryptoTaxCalculator even considers additional parameters like airdrops, staking, mining, DeFi staking rewards, and ICO participation. The robust algorithm then effortlessly generates a tax report for you.
Reports will clearly state all your crypto transactions, tax liabilities, capital gains, income, etc. From there, you can easily forward the information to your accountant or third-party tax software.
Overview
Starting Price: $49 per tax year
Number of Transactions: Up to 100 with the starter plan
Tax Software Connections: Both the Desktop and online version of the TurboTax app
Free Plan: Yes
Key Features
Powerful and accurate tax reports that carefully consider complex tax scenarios such as DeFi loans, DEX transactions, gas fees, leveraged trading, and staking rewards
Full breakdowns of each calculation, so you can easily understand how crypto taxes have been calculated, with fully customizable rules applied to support unique circumstances and avoid crypto taxes and payments that are unnecessary
The software works with DeFi and DEX trading, such as Uniswap, PancakeSwap, or SushiSwap; it also supports popular LP and staking protocols
Accountant portal and corporate pricing available for investment professionals and industry-leading accountants in need of premium support and accurate reports
Pricing
CryptoTaxCalculator offers a wide variety of paid plans and pricing options, including
Rookie Plan: $49/month, billed yearly for 100 transactions (ideal for beginners in the crypto space)
Hobbyist Plan: $99/month, billed yearly for 1,000 transactions (for crypto enthusiasts who use centralized exchanges)
Investor Plan: $189/month, billed yearly for 10,000 transactions and covers DeFi, DEX, derivatives, and staking (for active investors with complex transactions)
Trader Plan: $299/month, billed yearly for up to 100,000 transactions (ideal for day traders with high volume crypto gains)
The core features available for each plan include unlimited integrations, reports for all financial years, portfolio tracking, tax breakdown analysis, airdrops, wallet syncs, borrowing, and lending, as well as mining and staking.
All plans also have a 30-day money-back guarantee.
Pros
Extremely detailed tax calculations
Over 500+ integrations
Supports DeFi and DEX trading
Cons
No free plan is available
Frequently Asked Questions
What Is Crypto Tax Software?
Crypto tax software helps those who sell or trade digital currencies file a tax return with the IRS. These programs generally integrate with popular crypto exchanges and wallets to track your purchases, sales, and other transactions.
During tax time, most software will provide the various forms you need, saving you the trouble of tracking all your crypto transactions and navigating the complications of crypto taxes.
Crypto tax software generally charges either a monthly or yearly subscription package for its tax preparation services.
What Is IRS Form 8949?
IRS Form 8949 relates to sales and other dispositions of capital assets. It’s used by individuals, partnerships, corporations, trusts, and estates who need to report capital gains and losses from crypto investments.
How Can Crypto Tax Software Help With Tax Filing?
A crypto tax software helps to import previous transactions, categorize them into relevant topics, and calculate overall profits and income. The software takes this information and creates a form to file with the IRS, as well as a detailed report for you to keep handy for audit purposes.
Do I Have to Pay Taxes on Crypto?
Yes. The IRS classifies cryptocurrency as a form of property, instead of a currency. Because the value of cryptocurrency is constantly fluctuating, it’s considered either a capital gain or loss, depending on the value and how it was moved.
If you sold or used cryptocurrency by cashing it on an exchange or buying goods/services, you may owe taxes on that transaction. When the realized value is greater than the price at which you acquired the crypto, you may have a taxable capital gain.
How Is Crypto Tax Calculated?
Final tax reports consider various factors that you can be held liable for, such as capital gains and income tax. The amount calculated will depend on the type of cryptocurrency transaction and your individual situation.
For instance, you may be required to pay capital gains tax on profits made from buying and selling crypto. Likewise, you may also need to pay income tax on any interest earned while holding crypto.
What Are the Two Types of Capital Gains on Crypto?
When you buy and sell capital assets, your gains and losses fall into two main categories: long-term and short-term. These two classes are very different in terms of tax consequences.
Short-term capital gains and losses are given to the sale of property that you held for one year or less. These gains are typically taxed as ordinary income between 10% and 37%.
Long-term capital gains and losses come from the sale of property held for one year or more. They are typically taxed at preferential long-term capital gains rates of 0%, 15%, or 20%, depending on the adjusted cost basis.
If I Lost Money Trading Cryptocurrency, Do I Still Pay Tax on It?
The way cryptocurrencies are taxed will depend on the country and its tax laws. Most countries require investors to pay tax, regardless of whether they made capital gains and losses. These taxes are typically realized during the transaction, not at the end of the financial year.
Can I Write Off Crypto Losses?
There are often fluctuations in crypto prices, and many traders may experience capital losses on Bitcoin and other digital assets. Just as you would deduct for losses on stocks or bonds, crypto losses are also considered acceptable tax write-offs. You will simply declare them on your tax return and see if it reduces your tax liability. However, you can’t write off a loss of more than $3,000.
How Do I Report Crypto Taxes?
To report crypto taxes, individuals must keep careful records of their gains and losses. You’ll need to know the fair market value of your crypto when mined or bought, in addition to records of the fair market value when you exchanged or sold it.
However, there have been some major changes to crypto tax regulations in recent years and there are likely more to come. For example, the IRS added a question to all tax return forms asking whether you have received, sold, exchanged, or otherwise disposed of any virtual currency. Anyone who fails to disclose cryptocurrency transactions may be subject to an audit.
That’s why it’s important to disclose all digital assets accurately. Using crypto tax software is the easiest way to ensure everything is filed quickly and correctly.
Are Crypto-to-Crypto Trades Taxed?
Yes, crypto-to-crypto trades are taxed because you are either earning or losing money on these sales.
What if I Make Charitable Contributions and Gifts in Crypto?
Donated cryptocurrency may qualify for charitable organizations, and you may be able to claim a tax deduction if you itemize your deductions. It’s possible to deduct the fair market value of the cryptocurrency at the time of the charitable contribution and avoid paying capital gains tax on it.
Keep in mind, cryptocurrency charitable contributions are treated as non-cash charitable contributions. This means you may have to document your crypto-charitable contribution with a written acknowledgment when claiming a virtual currency deduction of $250.
Are There Any Tax-Free Crypto Transactions?
Yes, there are some tax-free crypto transactions available for certain situations. This will largely depend on the transaction type, the account you transact in, your income, and your filing status.
For example, crypto transactions made in a tax-deferred or tax-free account, like a traditional or Roth IRA, won’t get taxed like a brokerage account. These trades generally avoid taxation. You can also avoid paying taxes on crypto if your income is less than or equal to $40,400 for individual filers or less than or equal to $80,800 if you file jointly as a married couple.
Can the IRS Track Crypto Activity?
Even though the nature of cryptocurrencies is largely anonymous, the IRS still has its ways of tracking crypto activity. For example, the IRS uses blockchain analytics tools to identify the crypto activity of digital wallets. It can take this data and tie it to instances where they suspect tax evasion or money laundering may be occurring. Because of this, you want to report all crypto activities during that financial year on your tax return.
*This article is provided by an advertiser and not necessarily written by a financial advisor. Investors should do their own research on products and services and contact a financial advisor before opening accounts or moving money. Individual results will vary. Foreign companies and investment opportunities may not provide the same safeguards as U.S. companies. Before engaging with a company, research the laws and the regulations around that service, and make certain the company is in compliance. For comprehensive guidance on U.S. investments and financial regulations, visit the Securities and Exchange Commission (SEC)’s Investor.gov.
