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.
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.
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.
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.
KeyFeatures
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
Cons
Key Features
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
Cons
Key Features
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
Cons
Key Features
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
Cons
Key Features
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
Cons
Key Features
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
Cons
Key Features
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
Cons
Key Features
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
Cons
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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