Best Crypto Tax Software in 2021
Doing your taxes on your own can be so challenging and daunting. However, with the use of the most efficient and helpful tax software, it will surely make your life so easy and do your job in the most convenient way. The tax software is a third-party data aggregator that you can use to simplify the calculation process of the tax return of your crypto assets. You may all know that processing returns to the IRS during the tax season, everything should be accurate and up-to-date. So with the use of these tax software, everything will surely become quick and convenient.
Top 9 Best Crypto Tax Software
Here’s the table below summarizing the key findings of these best crypto tax software. The criteria we considered are Features, Price, and Ease of Use.
- Token Tax
- Advanced Software Features: margin trading taxes, ad-hoc accounting, initial public offering (IPO) tax planning
- Crypto Tax Software Integrations – making crypto tax calculation easier, including your taxes offshore
- Works with margin trading accounts
- It works everywhere
- Hands-on professional support
- Basic Plan: $65.00 per tax year; records up to 500 transactions on Coinbase and Binance only
- Premium Plan: $199.00 per tax year; up to 5000 transactions
Easy to Use
- It has become a go-to tax software for many
- It offers are tax optimization and loss harvesting
- Allows you to track the performance of your portfolio
- It’s integrated with several exchanges
- It offers services for consumers and enterprises
- Basic plan: $50.00 per year
- Plus plan: $175.00 per year
- Pro plan: $500.00 per year
Easy to Use
- Tax-loss harvesting tool: help offset any tax losses you incur
- It has traditional tax reporting software tools
- Integration TurboTax
- It offers a money-back guarantee.
- It offers a free plan: without TurboTax Integration; with live chat customer support
- Unlimited trade import pan: $299.00 per year; with priority support services
Easy to Use
- Crypto tax reporting tool: easy tax calculation
- TurboTax feature: combining all crypto tax documentation in yearly tax reports
- Application Programming Interface (API): integrating with various crypto exchanges
- Crypto tax-loss harvesting: advanced reporting tools
- Premium customer support for free users
- Robust tax professional support
- Offers a free plan: with limited features
- Premium package: $399.00; offers 1,000 transactions of up to $300,000 total of asset value
Easy to Use
- Quick monitoring and information updates for your crypto taxes and assets
- It generates crypto gains and crypto tax reports using IRS Form 8949
- It syncs your portfolio data in real-time to give an accurate picture of your investments
- It gives you access to accurate performance reports to measure your return on investment over time
- Offers free plan: 200 transactions, capital gains tax form generation, and error reconciliation
- Unlimited Plan: priced individually, with a one-time payment per tax year
- Enthusiast account: $14/month
- Pro account: $99/month
Easy to Use
- It utilizes international crypto tracking services; provides comprehensive support in more than 20 countries
- It supports more than 6,000 cryptocurrencies and integrates with 350 exchanges via API and CSV
- It supports staking, lending, and decentralized finance platform integrations
- Offers free plan
- Paid plans: ranges between $99.00 and $179.00, allowing for more transactions and full customer support
It’s suitable for users with more experience and engagement in the crypto market.
- It supports more than 50 exchanges with TurboTax features
- It creates crypto tax reports, like the IRS Form 8949, short-term and long-term sales reports, and TaxAct Direct Import, generated with API and CSV format integrations
- smart-matching algorithm matches: prevents you from unknowingly hitting a negative balance due to mismatches
- Basic plan: $10.00 per tax year
- Intermediate plan: $45.00 per tax year
- Expert plan: $85.00 per tax year
- Professional plan: $200.00 per tax year
Easy to Use
- It connects your crypto wallets and exchanges
- Provides valuable insights
- Review the portfolio of your crypto assets
- Influences the crypto space and explores the crypto market
- Free plan
- Hobbyist plan: $79.00
- Trader plan: $199.00
- Pro plan: $299.00
Easy to Use
- It generates real-time reports if your losses and gains
- Presents your realized and unrealized gains
- Analyzes your trades and transactions
- With direct imports from different platforms
- Free plan
- Pro plan: $10.99 per month
- Expert plan: $16.99 per month
- Unlimited plan: $54.99 per month
Not the Best Choice for Beginners
How to Choose a Crypto Tax Software?
When choosing a cryptocurrency tax software, you have to select one that’s quick and convenient to use for your crypto transactions and trades. Besides that, it should also provide you with options for customer support whenever you need any assistance or you may face any issues in the future. Hence, check these items below that you can use as a basis to know how to choose the best crypto tax software.
For crypto traders who do multiple exchange transactions, they need a tax crypto software that works with margin trading accounts and can be utilized by any user residing in different parts of the world. Also, if the software offers various affiliate programs, it’ll be a great advantage for them.
Businesses Accepting Cryptocurrencies
Businesses that accept cryptocurrencies should also consider using a particular tax crypto software that utilizes international crypto tracking services and as many cryptos as possible. Software that supports many countries will work best for them.
Crypto Investor – Long-Term Capital Gains
If you’re looking for long-term capital gains as a crypto investor, find a tax crypto software that offers various tools to help you offset your incurred losses to maximize your profits. Also, you have to keep in mind that to make your life easier in dealing with your crypto taxes, make use of particular software that calculates capital gains you’ve earned, both long-term and short-term capital gains. Read our guide on how to reduce taxes on cryptocurrencies.
Someone Who Received a Crypto Airdrop
When you offer products or services in return for a particular crypto asset, software that syncs the portfolio data in real-time to give you an accurate picture of your crypto investment will help you. Receiving a crypto airdrop is taxed as ordinary income. An easy way to monitor your assets and manage the information in your wallet can give you the most convenient way to control the activities in your crypto assets and the current status of your portfolio.
Someone Who Received a One-Off Crypto Payment
When you offer products or services in return of a particular crypto asset, a software that syncs the portfolio data in real-time to give you an accurate picture of your crypto investment will be a big help for you. An easy way to monitor your assets and manage the information in your wallet can give you the most convenient way to control the activities in your crypto assets and the current status of your portfolio. If you are a crypto miner, your crypto mining is considered ordinary income.
Our Evaluation Criteria
When looking for the best cryptocurrency tax software that fits your needs and preferences, you have to check these evaluation criteria to do a comparison between a particular software from the others. We considered the price of the software and its ease of use.
Capacity to Transfer Data
The bandwidth refers to the capacity of the cryptocurrency tax software to transfer data. So when you’re looking for the best one, make sure that it has enough bandwidth to process all of the transaction imports of your crypto assets. For instance, some software might limit you to only a certain amount of transactions. If you are a frequent crypto trader, those types of software may not be right for you.
Ability to Integrate
The best software or crypto tax platform to choose should have integration in order to communicate. Sometimes, most of the tools used for crypto tax reporting are using CSV files, allowing any transfer of data between different programs. Also, when it comes to processing requests between different programs, you can do that in the form of an Application Programming Interface or API.
Some software can link directly to your crypto exchange, such as Binance or Coinbase. At the very least, make sure you can download a CSV file from your exchange that has all your transactions.
Multiple Essential Functions
Another thing you have to check when finding a reliable tax software is its capability to provide you with multiple essential functions. It can import data at scale and in a standard format, and the imported data should be sorted based on the fiat currency value of your cryptocurrency.
Besides that, the crypto tax software should be able to format tax reports following the template that the IRS recommends, like Form 8949. Also, it should give you a clear picture of the movements of your crypto taxes and allow you to track your crypto gains and losses on a yearly basis. Then, this software will let you see the calculation of your losses and gains, which is crucial in tax filing to the IRS.
Hence, if you’re looking for the best crypto tax software, you need to check each feature it offers. Others may seem interesting, but you only have to consider those that you need and will significantly help you file your tax returns on time correctly and efficiently.
Making Your Data Safe
Of course, it will be in your best interest to make all of your data safe at all times. That’s why you have to choose a particular cryptocurrency tax software that has the capability to do this for you, whether it is transaction-related data or personal details. So before using any software or platform, you have to make sure that you completely understand how they store your data and make them secure to give you peace of mind. If data privacy laws are important to you, then choose a software provider that is based in a country that has strict data privacy laws.
The Reputation of the Software Provider
One thing you have to check when choosing a particular crypto tax software is the provider’s reputation in the crypto world. Doing so will give you an idea if the software is reliable enough to do what it says it can do. So you can check its history and record, and even look for reviews and testimonials from others who already have experience using it.
Making use of free software or platforms can be a good idea, but most of them will only allow you to have access to limited features. That’s why paying extra to gain access to essential features that you need will give you so much help in the long run.
Availability of the Customer Support
Another thing you have to check when looking for the best crypto tax software is the availability of customer support. It’ll also give you so much help whenever you need assistance in the future. You also have to know what time their support team will be available, so you will know when to contact them.
Look for the Best With Extra Offers
When you compare a particular crypto tax software from the others, you have to check the most unique and exciting offers they present, and don’t forget to look for the extra add-ons on the offer to make it the best one on your list.
Alternatives to Crypto Tax Software
With all of the crypto tax software discussed above, but you are still not confident of using any of them, you have some alternatives you can choose from. You can do your crypto taxes on your own. You may know that the computation and dealing with crypto taxes can be difficult and daunting, but as long as you completely understand how it works, it’ll be possible to do it yourself. Another alternative available for you is to consult crypto CPAs or tax attorneys. These professionals have a wealth of knowledge about the world of crypto taxes, and they can surely help you get your job done in the most convenient and efficient way.
Is TurboTax good for cryptocurrency?
Any crypto tax software that has been integrated into TurboTax is good for your crypto assets. It allows you to enjoy the benefits it gives while you’re using it, including transaction imports, smooth tax calculation, tax-loss harvesting feature that will help you save more money in the long run, and many others. However, it doesn’t appear that TurboTax directly supports crypto transactions at this time (but it does support Coinbase transactions).
Are there any free crypto tax calculators?
Yes! There are many software providers and other platforms that will allow you to use their crypto tax calculators for absolutely free. However, keep in mind that these free offers will usually give you access to limited features and functions. So paying an extra amount will significantly help you enjoy some exciting features and take advantage of the benefits it provides while preparing your crypto tax returns in the most convenient and efficient way.
How do I file taxes on cryptocurrency?
The first thing you need to do is to see if you owe taxes on your crypto assets by evaluating every taxable event you made within a tax year. After that, you have to report and include all of them in your tax return. Keep in mind that you need to determine every incurred gains and losses in every transaction you made and file them using a correct form in the IRS. So if you want more details about tax filing on your crypto assets, please go to Crypto Taxes – A Complete Guide.
Today, you can find other tax software with various exciting features and offers. But the best you can choose is the one that can provide you with organized, accurate, and easy-to-compile data. Besides that, you also have to use one that can support as many cryptocurrencies as possible and can integrate with the major crypto exchanges worldwide. On top of that, when generating tax reports, the software is capable of following the format and guidelines provided by the IRS.