The pleasure of making money on fluctuations of the crypto market can be shut off by the task of reporting taxes, which is technically exhausting. Down below, you’ll find the list of crypto tax software providers helping you automate the process in the U.S.
What is crypto tax software?
Crypto Tax Software is a software that connects to crypto wallets and exchanges to sync up with them and generate tax reports, in most cases, Form 8949, Schedule D, and in some cases, Schedule 1 and others. After generating, checking and downloading reports, you can send them to your accountant or submit them with the Internal Revenue Service (IRS): electronically or by mail.
Before even choosing the right tool for cryptocurrency taxes, you should probably decide if you need it at all. You only need to pay taxes on your income when you sell, trade, or dispose of cryptocurrency in any way and recognize a gain. If you hold your crypto and do nothing with it, there’s nothing to tax. But if you dispose of cryptocurrency and recognize a loss, you should show it and deduct that on your taxes.
That said, cryptocurrency tax software providers offer a lineup of extra reports and services depending on your needs and paid plans. For example, they might offer you a crypto tax calculator, a portfolio tracker that helps you keep your eyes on your savings. Or, you can also get a tax loss harvesting report that can be used to reduce your cryptocurrency taxes when you sell investments for less than you paid.
Lost in translation? The task of filing your taxes is an important part of every trader’s routine, so maybe learn all the important details from this compact read first and, then, don’t hesitate to go back here and choose the best crypto tax software from the list down below.
How does crypto tax software work?
Just like with traditional tax software, TurboTax or H&R Block Tax Software helping you file federal and state income tax returns, crypto tax software tools were developed to make your life easier. That said, generally, they work in a very similar way.
First, you connect your crypto tax software to the crypto platforms you have accounts with, then, scrape the information about your revenue from staking activities, NFT trades, DeFi apps, airdrops, as well as transactions from all the wallets and exchanges. Second, they aggregate all the data in the dashboard where you review all the information and check the accuracy of the generated income and loss results. And, last but not least, they offer you to download a ready-to-file form or forms.
4 things to consider when choosing crypto tax software
- Check if the crypto tax software of your choice connects directly with all the wallets and crypto exchanges that you use. Normally, every platform has a public list on their website with exchanges and wallets connected, but sometimes you need to log in to see the list.
- If you already use specific software to file federal and state income tax returns, make sure the crypto platform of your choice is connected with it. TurboTax is often connected with the crypto software tools, but other products may not, so check in advance.
- How many transactions are available on each of their subscription plans? Maybe you’re about to buy a plan with a large number of transactions while you only sell twice a year. Make sure the subscription package has all you need and nothing more.
- Do you want to tax income from NFT trades, DeFi exchanges, staking, lending, etc? This is where things get trickier. Not all crypto tax tools support that, so read on that, too.
Top 8 crypto tax software solutions
We at TradeSanta love automation and have compiled a list of top eight crypto tax software solutions to help you automate the process of paying crypto taxes, too. If you want to save time and reduce the chance of miscalculating while manually filling out all the forms, definitely check out these solutions!
Say, you’ve decided on a certain crypto tax software solution. The first thing to do at this stage is to add your crypto exchanges and wallets to the dashboard of the crypto tax software. There are three ways to do so. You can either upload a file with transactions from the exchange/wallet (1), you can connect your software to all of your wallets directly from the dashboard (if such an opportunity is provided) (2), or you can do it via API keys (3). In this case, all the transactions will be imported, and from now on, will be sent automatically to the crypto tax software dashboard.
Then, using the crypto tax software’s dashboard, you might want to review the imported information and view tax liability for every transaction.
Once you have ensured that everything is correct, it’s time you generated the tax reports and filed them.
CoinLedger (former CryptoTrader.Tax)
KeyFeatures
- Generates Form 8949, Short & Long Term Gains Report, Tax Loss Harvesting Report, Cryptocurrency Income Report, TurboTax & TaxAct Direct Import, Audit Trail Report
- Covers FIFO, LIFO, HIFO
- Allows to tax DeFi, NFT, Staking
Pricing
| Hobbyist $49 per year | Day Trader $99per year | High Volume $199per year | Unlimited $299per year |
| Up to 100 transactionsper year Form 8949, Income Report, Capital Gains Report, End of Year Positions, Audit Trail Report,Tax Loss Harvesting FIFO, LIFO, HIFO | Up to 1,500 transactions per year Form 8949, Income Report, Capital Gains Report, End of Year Positions, Audit Trail Report,Tax Loss Harvesting FIFO, LIFO, HIFO | 5,000transactions per year Form 8949, Income Report, Capital Gains Report, End of Year Positions, Audit Trail Report,Tax Loss Harvesting FIFO, LIFO, HIFO | Unlimitedtransactions per year Form 8949, Income Report, Capital Gains Report, End of Year Positions, Audit Trail Report,Tax Loss Harvesting FIFO, LIFO, HIFO |
Pros
- Connects to 400+ crypto exchanges
- Your reports can be directly imported into TurboTax Online, TurboTax Desktop, TaxAct, and many other tax platforms.
Cons
- Not for beginners
ZenLedger
Key Features
- Generates IRS Form 8949, Schedule 1, Schedule D, Fincen 114/FBAR etc.
- Covers HIFO, FIFO, LIFO methods of calculation
- Allows to calculate your crypto taxes from DeFi, NFT, Staking
- A possibility to get a tax professional’s help and advice. The Consultation Plan including a 30-min consultation costs $295. The Single-Year Tax Report, where a professional prepares a crypto tax report for you, costs $3,500 per year. The Multi-Year Tax Report, where a professional prepares a crypto tax report for you for two years in a row, costs $6,500 per year.
Pricing
Free
| Starter $49 per year
| Premium $149 per year | Executive $399 per year | Platinum $999 per year |
Up to 25 transactions per year
No DeFi, No Staking, No NFT | Up to 100 transactions per year
No DeFi, No Staking, No NFT
| Up to 5000 transactions per year
DeFi, Staking, NFT
| Up to 15,000 transactions per year
DeFi, Staking, NFT
| Unlimited transactions per year
DeFi, Staking, NFT
2 hours of premium support from a dedicated customer service agent |
Pros
- Connects to 500+ crypto exchanges and wallets
Cons
- Only taxing in the USA is supported
- You cannot use crypto to pay for ZenLedger’s services
Koinly
Key Features
- Generates Form 8949, Schedule D etc.
- Covers FIFO, LIFO, HIFO calculation methods
- Allows to tax DeFi, Margin Trades, Futures
- Smart transfer matching. Koinly uses AI to detect transfers between your own wallets and keep track of your original cost. Which is a pretty nifty feature to have.
Pricing
| Free | Newbie $49 per year | Hodler $99per year | Trader $179per year |
| Up to 10 transactions per year | Up to 100 transactionsper year Form 8949, Schedule D International tax reports Comprehensive audit report Export to TurboTax, TaxACT FIFO, LIFO | Up to 1000 transactions per year Form 8949, Schedule D International tax reports Comprehensive audit report Export to TurboTax, TaxACT FIFO, LIFO | Unlimitedtransactions per year Form 8949, Schedule D International tax reports Comprehensive audit report Export to TurboTax, TaxACT FIFO, LIFO |
Pros
- Connects to 300+ crypto exchanges and wallets
- Supports 20+ countries
Cons
- You cannot use crypto to pay for Koinly’s services
Accointing.com
Key Features
- Generates Form 8949
- Covers FIFO, LIFO, HIFO calculation methods
Pricing
| Free | Hobbyist $79 per year | Trader $199per year | Pro $299per year |
| Up to 25 transactions per year Portfolio tracking dashboard Track your whole portfolio Tax-loss Harvesting tool Crypto tracker app | Up to 500 transactionsper year Portfolio tracking dashboard Track your whole portfolio Tax-loss Harvesting tool Crypto tracker app | Up to 5000 transactions per year Portfolio tracking dashboard Track your whole portfolio Tax-loss Harvesting tool Crypto tracker app | Up to 50,000transactions per year Portfolio tracking dashboard Track your whole portfolio Tax-loss Harvesting tool Crypto tracker app |
Pros
- Connects to 300+ crypto exchanges and wallets
- Supports the countries where FIFO, LIFO and LOT accounting methods are supported
- A comprehensive mobile app
Cons
- You cannot use crypto to pay for Accointing’s services
Cointracker.io
Key Features
- Generates IRS Form 8949, Schedule 1, Schedule D, etc.
- Covers FIFO, LIFO, HIFO, ACB (Canada), Sharepool (UK)
Pricing
| Free | Hobbyist $59 per year | Premium $199per year | Executive $399per year |
| Up to 25 transactions per year Cost basis & capital gains Error reconciliation Forum Support | Up to 100 transactionsper year Cost basis & capital gains Error reconciliation Forum Support | Up to 1,000 transactions per year Cost basis & capital gains Error reconciliation Forum Support DeFi functionality Tax summary by wallet Email support | Unlimited transactions per year Cost basis & capital gains Error reconciliation Margin trading DeFi functionality Tax summary by wallet Concierge support Custom features |
Pros
- Connects to 300+ crypto exchanges and wallets
- TurboTax, TaxAct integrated
Cons
- Minor bugs when uploading a CSV file, connecting to exchanges, topping up the balance
Bear.Tax
Key Features
- Generates IRS Form 8949, Schedule 1, Schedule D, etc.
- Smart Matching Algorithm, helping you avoid taxable events that were not actually taxable events
- Income classification, such as Gifts, Staking rewards, Airdrops, Hard forks, Referrals, Mining, Voting Rewards etc.
Pricing
| Basic $49 per year | Plus $149per year | Pro $499per year |
| Up to 200 lifetime transactions All supported exchanges Automated IRS 8949 8949 Aggregated Document Export to TurboTax | Up to 25,000 lifetime transactions All supported exchanges Automated IRS 8949 8949 Aggregated Document Export to TurboTax | 1 million lifetime transactions All supported exchanges Automated IRS 8949 8949 Aggregated Document Export to TurboTax |
Pros
- Connects to 200+ crypto exchanges
- TurboTax, TaxAct integrated
- Australia, Canada, India, United States supported
Cons
- No support for advanced crypto use cases like margin trading and decentralized finance (DeFi)
Cointelli
Key Features
- Generates Form 8949, Schedule D, Audit Trail, etc
- You can review your data in either Manual or Auto Mode
Pricing
| Free | For everyone $49 | For entreprise (customized price) |
| Free import & reviewPay only at download | Portfolio trackerCapital gain reportOrdinary income reportGift/Donation report | Yearly trading volume over 100K |
Pros
- Supports 110+ exchanges and wallets
- TurboTax, TaxAct integrated
- DeFi, staking, NFTs
Cons
- Only works for the users from the USA
TaxBit
Key Features
- Generates Form 8949, Tax Optimization and Tax-Loss Harvesting, etc
- CPA Review and IRS Audit Support
Pricing
| Free | Basic $50 | Plus+ $175 | Pro+ $500 |
| Unlimited Transactions +Connected Wallet Addresses Data Ingestion Across 500+ Platforms Current-Year Tax Forms for All Supported TaxBit Network Companies DeFi and NFT Tax Engine | Unlimited Transactions +Connected Wallet Addresses Data Ingestion Across 500+ Platforms Current-Year Tax Forms for All Supported TaxBit Network Companies DeFi and NFT Tax Engine Current-Year Tax Forms for All Other Platforms Historical Tax Forms | Unlimited Transactions +Connected Wallet Addresses Data Ingestion Across 500+ Platforms Current-Year Tax Forms for All Supported TaxBit Network Companies DeFi and NFT Tax Engine Current-Year Tax Forms for All Other Platforms Historical Tax Forms Custom Support for CSV Uploads NFT Suite Tax Optimization and Tax-Loss Harvesting | Unlimited Transactions +Connected Wallet Addresses Data Ingestion Across 500+ Platforms Current-Year Tax Forms for All Supported TaxBit Network Companies DeFi and NFT Tax Engine Current-Year Tax Forms for All Other Platforms Historical Tax Forms Custom Support for CSV Uploads NFT Suite Tax Optimization and Tax-Loss Harvesting Portfolio Performance Suite CPA Review and IRS Audit Support |
Pros
- Supports 500+ blockchain platforms
- DeFi, NFTs Tax Engine
Cons
- The CSV file parsing is manual formatting only
- Looks like the system is unstable at times, as the author couldn’t log in to the platform due to a 403 error bug.
Which crypto tax software is the best
Is there such a thing as the best cryptocurrency tax software? It’s fair to say that almost every tax filing software provider on the list tends to generate an IRS Form 8949, Schedule 1, and Schedule D – say, Koinly, Cointracker and TaxBit.
However, not all platforms allow covering DeFi, NFT, or Staking gains. For example, Koinly allows to tax only DeFi, Margin Trades, and Futures. FIFO, LIFO, HIFO accounting methods are also an often-case and offered by almost every platform, but as to supported countries, a lot of solutions are normally working with only a few countries. That said, it’s clear that most of the crypto tax software platforms are designed with the U.S. tax system in mind. But if you live in Europe, you’ll definitely have a chance to learn to love Koinly.
Filing taxes and a tax calculation process is a challenging task to accomplish. So, if you’re interested in having one more cutting-edge automation tool in your arsenal, go for it it and don’t forget to enrich your toolkit with the TradeSanta platform to take advantage of the crypto market volatility without manual hassle of the trading routine – buy and sell easily, using crypto trading robots.
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