Key Takeaways
- A crypto tax software is a tool designed to automatically sync across exchanges and wallets to harvest your crypto transactions and generate a tax report.
- It saves you a headache when filing returns at the end of a financial year by automating the processes of harvesting data and generating a tax report.
- CryptoTax Calculator, TurboTax, Koinly, CoinTracking, ZenLedger, Accointing, TaxBit, Blockpit, and TokenTax are some popular tax software to consider when filing returns on your cryptocurrency transactions.
Did you trade crypto in the last financial year? If yes, then you may owe your government either capital gains or losses. You need to know the date and price of each asset you purchased, and the data and price of each asset you sold, in order to track and report crypto capital gains and losses to the government.
Tracking these sets of information can be daunting, especially if you’re a trader making hundreds or thousands of transactions per tax year. That is where crypto tax software comes in. These tools automatically sync across crypto exchanges and web3 wallets to calculate your capital gains and losses and provide a detailed tax report for filing. Read on to find out about the top 10 crypto tax software for 2023.
Overview
We've put together a summary table so you can see how the different tax software compare against each other.
While most of them offer a free plan, it's important to note that these serve more as a portfolio tracker. Only CoinTracking, ZenLedger, and Accointing offer tax reports, although they only support a limited number of transactions.
CryptoTax Calculator
CryptoTax Calculator seamlessly integrates with most exchanges and wallets to port your trades and generate comprehensive tax reports. It records airdrops, staking rewards, mining, and initial coin offering (ICO) participation when filing your returns. It also includes DeFi and DEX integrations, NFT trading, margin trades and futures, and more. The software's algorithm performs all calculations for you and generates detailed tax reports reflecting actual gains and losses.
Best Features
- Supports 600+ exchanges and wallets, including Coinbase, Binance, Kraken, MetaMask, and Trust Wallet.
- It provides region-specific report formatting for US users, ensuring they strictly conform to the IRS and state rules.
- Its Trader Plan enables you to track and generate reports of up to 100,000 transactions per tax year.
Pricing
CryptoTax Calculator has four pricing plans:
Free – It covers up to 1,000 transactions annually and is free. It's ideal for long-term crypto holders who rarely trade, supporting up to three imports and basic tax reports.
Hobbyist – It covers up to 1,000 transactions annually and costs $99. It comes with all the benefits of the Free Plan and supports on-chain transactions.
Investor – It covers up to 10,000 transactions annually and costs $249. Apart from supporting the Hobbyist Plan features, it provides advanced tax reports, advanced inventory methods and a tax loss harvesting tool.
Traders – It covers up to 100,000 transactions per year and costs $499. Besides supporting all the features of the Investor Plan, it provides you with priority support.
TurboTax
TurboTax has been helping individuals and businesses file returns since the 1980s. Whether you are generating a tax report for the first time or are a seasoned tax filer, the software will help you structure your transactions to generate an accurate report. It leverages a question-and-answer model and broad tax support to stand out from the rest. Besides, it's easy to use and has tax experts to sort out your concerns about filling your taxes correctly and receiving the maximum tax refund.
Best Features
- TurboTax allows you to upgrade to a higher degree of tax assistance. For instance, when upgrading to TurboTax Live plans, you can connect with a tax expert directly.
- It comes with a token depreciation functionality that monitors your major holdings' performance throughout the year.
- It has simple but helpful options for uploading and harvesting data.
Pricing
TurboTax has two products:
Do it yourself – This comes with a Free Edition, which is ideal for individuals with simple tax needs. For the other do it yourself plans, users can start for free and pay only when they file.
Live (Assisted or Full Service) – Ideal for individuals with complex tax needs who require expert help and advice to file returns.
Koinly
Koinly's fast tax transaction tracking and reporting ranks it among the best crypto tax software. It claims to track and generate reports within 20 minutes. Koinly supports tax filing for more than 20 countries, and provides tips for minimizing future taxes. By syncing and porting your crypto transactions into Koinly, you can view your entire portfolio of under-realized and unrealized capital gains.
Porting your crypto activities to Koinly is straightforward – you can upload a CSV document or connect through the Koinly API. The tool integrates with over 700 exchanges, blockchains, and wallets. It's important to note that Koinly does not offer a free plan. While you can track up to 10,000 transactions for free, you must subscribe to one of its plans to download a tax report.
Highlights
- Extensive crypto support: You can monitor over 6000 digital currencies, including Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).
- Dashboard: An enlightening dashboard echoing your gains and losses for a particular tax year, total growth return-on-investment (ROI), current investments, etc.
- Double-entry system: A double-entry system that monitors all transactions made, simplifying error detection and debugging in the next financial year.
Pricing
Apart from the free plan covering up to 10,000+ transactions (excluding report generation), Koinly supports four paid plans:
- Newbie Plan costing $49 per year with 100 transactions.
- Hodler Plan costing $99 per year with 1,000 transactions.
- Pro Plan costing $179 per year with 3,000 transactions, or from $279 supporting 10,000+ transactions.
CoinTracking
Apart from helping you generate a tax report, CoinTracking allows you to track your gains and losses, discover realized and unrealized gains, and see the value of your crypto from its intuitive interface. It's compatible with 12 different cost basis methods and can be accessed from 100+ countries. Do note that under current IRS guidance, the only two cost basis methods allowed for tax return reporting are Specific Identification and First In First Out (FIFO). CoinTracking leverages 2FA and data and API encryption to guarantee the maximum security of its users.
Highlights
- You can generate a tax report for up to 200 transactions for free.
- It allows you to generate over 25 customizable tax reports, such as gains/loss, realized and unrealized gains, etc.
Pricing
CoinTracking has four pricing plans:
Free – It covers up to 200 transactions with 2 backups of your CoinTracking portfolio to protect against data loss or corruption. It doesn’t offer auto-imports and only 2 manual imports, with a limit of 5MB per CSV file, and only 100 entries for tax and capital gains reporting.
Pro – It covers up to 3500 transactions at €9.99 with 5 backups. It offers 5 auto-imports for each coin and unlimited manual imports, with a limit of 20 MB per CSV file.
Expert – It covers up to 20,000 transactions at €16.99 with 10 backups. It offers 10 auto-imports for each coin and unlimited manual imports, with a limit of 20 MB per CSV file.
Unlimited – It supports unlimited transactions at €59.99 with 20 backups. It offers 50 auto-imports for each coin and unlimited manual imports, with a limit of 200 MB per CSV file. It also supports other formats like XML and JSON.
Did you know you can redeem a 10% discount on all CoinTracking plans via CoinGecko's Candy Rewards?
CoinLedger
CoinLedger, previously CryptoTrader.Tax has been providing crypto returns filing since 2018. It's designed to help you monitor your crypto trades throughout a financial year in minutes and create tax reports highlighting gains, losses, and earnings from NFTs, staking, and mining activities. The CoinLedger interface is intuitive and user-friendly to seasoned and newbie users.
Best Features
- It lets you create a short and long-term gains report, a crypto income report, and a tax loss harvesting report, reducing your tax requirements.
- It allows you to track your portfolio for free and only pay when you want to generate a tax report.
Pricing
CoinLedger supports four pricing plans:
Free – You can import your transactions and track your portfolio free of charge, but no tax reports are included
Hobbyist – It covers up to 100 transactions per tax year, tax reporting, and costs $49.
Investor – It covers up to 1,000 transactions per year, tax reporting, and costs $99.
Unlimited – It covers up to 3,000+ transactions per year, tax reporting, and costs $199.
ZenLedger
ZenLedger is a cryptocurrency tax software that offers comprehensive tax reports for crypto trades, such as customized Form 8949, Schedule 1 and Schedule D. Designed for accurate tax tracking and reporting to prevent users from overpaying, ZenLedger is known for its fast and user-friendly interface. To use ZenLedger, you import your exchange or wallet trade history, review it and download a tax report.
ZenLedger supports over 400 exchanges, wallets, and 100+ decentralized finance (DeFi) and NFT protocols. It has a supportive customer department ready to help you through email, live chat, and phone calls throughout the week. Besides, ZenLedger has a 1-year refund policy, and some of its plans also support non-fungible tokens (NFTs).
Highlights
- Its tax tracking tools enable you to make informed decisions while investing and saving money with its comprehensive tax reports.
- The Grand Unified Accounting tool features a detailed summary of all your transactions and tax liability, with all information regarding your trades in one place, simplifying the tracking of many transactions across multiple platforms.
- It has a two-factor authentication (2FA) login process to strengthen online security and keep your information secure and private.
Pricing
ZenLedger supports a free plan for a maximum of 25 transactions. You can choose any of these plans for 26 trades and above:
Starter – It covers up to 100 transactions and costs $49 per tax year but does not include DeFi / Staking / NFTs.
Premium - It covers up to 5,000 transactions and costs $149 per tax year.
Executive – It covers up to 15,000 transactions and costs $399 per tax year.
Platinum – It covers unlimited transactions and costs $999 per tax year with access to premium support from customer service.
Accointing
Accointing by Glassnode is a one-stop software for all cryptocurrency tax filing needs. It has multiple tools for tracking and managing cryptocurrency taxes through a user-friendly interface. The software is compatible with 300+ exchanges and flawlessly integrates with wallets via API and CSV. Besides, you can view your investment scorecard, evaluate gains and losses, and port all trades automatically through API connection, wallet address, or manual input.
Accointing secures the whole inter-service or user/server communication with SSL. Besides, it leverages identity authentication and management via OAuth – an open-source authorization system for simplifying platform complexity. However, Accointing only supports Form 8949 – you must key in information into Schedule D to find your overall gains and losses.
Highlights
- A universal crypto tax calculator that supports 50 countries based on generally accepted crypto tax principles.
- Multiple extraction and relay options – You can extract information through API, CSV, and manual input, and download your tax report as a PDF, CSV, or XLSX format.
- A tax optimization tool that informs you how to perform your trades to achieve your tax goals, like stopping further losses.
- A "30 day money back guarantee" policy when you meet some conditions, like reports that are not compliant with your jurisdiction's tax requirements.
Pricing
Accounting has four pricing plans:
Free – You can track and generate a tax report for up to 25 transactions per year.
Hobbyist – It covers up to 500 transactions per year and costs $79. It comes with a tax-loss harvesting tool and an asset tracker app.
Trader – It covers up to 5,000 transactions per year and costs $199. It also has a tax-loss harvesting tool and an asset tracker app.
Pro – It's designed for professional traders. It covers up to 50,000 transactions per year and costs $299.
Do note that tax reports can only be generated for portfolios with less than 50,000 transactions.
TaxBit
TaxBit also ranks among the top crypto tax software in 2023. It's designed by CPAs and taxation experts to cater to crypto users' taxing and financial needs – from institutional investors to government agencies to individuals. Its SOC 2 certification ensures maximum data safety for users. Though most tax software tools allocate unlimited transactions to the most expensive pricing plan, all TaxBit plans have unlimited transactions – including its free plan. This means you can download a tax report freely if your exchange or wallet is part of the TaxBit Network of 20 firms. However, if you have taxable transactions on platforms outside the TaxBit Network, a cost will apply to retrieve tax forms from these platforms.
You'll need to export your reports to a tax filing software (like TurboTax) to file your taxes.
Best Features
- You can generate a tax report for free if your crypto exchange/wallet is part of the TaxBit Network.
Pricing
The individual plan is free, although you’ll have to pay to retrieve tax forms from platforms outside the TaxBit Network.
Blockpit
Blockpit is based in Austria and Germany, specilaizing in cryptocurrency compliance and has created software for tracking crypto transactions and generating tax reports. The tool streamlines the process of filling crypto returns and navigating anti-money laundering (AML) guidelines and other taxation laws. In addition, it comes with a real-time tax reporting system, enhancing effectiveness in compliance and AML processes through frictionless integration with multiple exchanges and wallets.
Best Features
- Blockpit enables you to submit fully compliant reports for Austria, France, Germany, Spain, Switzerland, and USA.
- You can port transactions manually or through auto-sync and download tax reports in multiple formats.
- You can see a summary of your past and current investment portfolio and assess your performance.
Pricing
Blockpit has four pricing plans:
Free – It offers portfolio tracking, covering exchanges, blockchains, staking, and NFTs. There is no tax report included in the Free plan.
Lite – The tax report covers up to 50 transactions annually and costs €49.
Basic – It covers up to 1,000 transactions annually and includes a tax optimization feature at €79.
Pro – It supports more than 1,000 transactions per tax year and prices start at €199.
TokenTax
Besides being a crypto tax software, TokenTax is a full-fledged digital currency accounting company. This makes its services more reliable, detailed, and accurate. The TokenTax support has a rich knowledge of cryptocurrency, DeFi, metaverse, and NFT, offering saving hacks when generating tax reports. The software also integrates well with multiple exchanges and wallets; hence, you don't have to manually enter much data into its tax calculation tool.
Best Features
- Supports all exchanges and wallets – While TokenTax directly integrates with 126 exchanges and wallets, you can port a CSV from any exchange or wallet, eliminating manual data entry.
- You can monitor your tax liability in real-time to avoid last-minute surprises.
- It generates a broad range of tax reports, including international reports.
Pricing
TokenTax has four pricing plans:
Basic – It covers up to 500 transactions per year and costs $65.
Premium – It covers up to 5000 transactions per year, supports every centralized exchange, and costs $199.
VIP – It covers up to 30,000 transactions per year, supports DeFi and NFT platforms, and costs $3,499. It also includes the option of full filing by TokenTax.
Enterprise – It offers customized tax and accounting solutions, with an expert team devoted to the client.
Conclusion
A crypto tax software streamlines the record-keeping of cryptocurrency transactions. It maintains secure records of all on-chain trades by integrating directly with your crypto exchange or wallet. Besides, it saves you a headache when filing returns at the end of a financial year by automating the processes of harvesting data and generating a tax report. By trying any of the software discussed in this article, you can rest easy that you are following all the crypto tax rules of your country.
(By Josiah Makori)
Read more: https://www.coingecko.com/learn/top-crypto-tax-software
All Comments