As the crypto industry grows, filing crypto taxes has become a requirement for all crypto investors. This applies in a number of countries where crypto taxation has been adopted. However, filing crypto taxes can be a headache without the right tool.
Crypto tax software is the primary tool for filing taxes accurately and with as little pain as possible. There are many crypto tax programs out there, but here are five picks that you can use to file your crypto taxes for next tax season.
Crypto tax calculator
Cryptotaxcalculator is one of the best crypto tax software options. With it, you can easily identify, track and organize crypto investments or trade on hundreds of exchanges, blockchains and wallets.
When filing taxes, Cryptotaxcalculator allows you to include your NFT, DeFi and DEX trading history, without leaving out any details.
Specifically, the software is integrated with over 500 exchanges, blockchains and wallets. Tax reports include derivatives and bets where supported, and you can download your reports for all fiscal years at any time within a valid subscription period.
There is also a suite for accountants who manage multiple clients’ accounts, enabling them to harmonize their clients’ portfolios in one place.
Although Cryptotaxcalculator is not free, it comes with a 30-day trial, where you can use the software to categorize all your transactions for free.
You will only be required to pay if you want to see the tax report or after the 30 days have passed. New to crypto tax? Here’s everything you need to know about Bitcoin and crypto taxes.
The paid plans start from $49 per year for the beginner, $99 for the hobbyist, $189 for the investor and $299 for the Trader accounts.
ZenLedger
ZenLedger is another great tool for accurate and easy crypto tax filing. ZenLedger covers NFT, DeFi and crypto just like Cryptotaxcalculator and also makes sure you only pay what you have to pay and not a penny more with the crypto tax loss collection tool.
You can easily track your trades and with your cryptocurrency transaction history, the software automatically generates IRS forms for additional income, capital gains and losses, sales and many other actions.
It also has a great unified accounting feature, which is a unique ZenLedger feature that allows you to see the entire transaction history across all exchanges and wallets in a single spreadsheet, along with the associated calculated tax.
With this in place, you can connect to over 500 exchanges and wallets, review your crypto transactions and file your tax forms in minutes.
ZenLedger offers a free plan that allows up to 25 transactions in a year for those who use it for personal tax reporting. There is also a professional package for tax professionals to help them manage tax reporting for clients.
In addition to helping with portfolio tracking, tax reporting and filing, ZenLedger provides free crypto tax information and guidance to help you make informed decisions.
ZenLedger paid accounts are Starter ($49), Premium ($149), Executive ($399) and Platinum ($999), billed annually.
Cointracker
Cointracker is one of the largest and best-known crypto treasure programs, with $50 billion in tracked assets. You can track your crypto portfolio on the go for any supported exchange, cryptocurrency or wallet.
This also supports NFTs and is the official tax partner of OpenSea, the largest NFT marketplace in the world. You’ll enjoy automated portfolio tracking across over 10,000 cryptocurrencies and more than 300 wallets and exchanges.
At the same time, you can review your crypto transactions, and the software saves you money by optimizing cost-based accounting methods and using tax loss harvesting to prevent tax overpayments.
Cointracker offers a free account with up to 25 transactions, just like ZenLedger, but the paid offers are far less attractive than Cryptotaxcalculator or ZenLedger.
Apart from handling crypto taxes, Cointracker also serves as a crypto market information platform. You can access the prices of cryptocurrencies on the website and monitor the market right from there.
Cointracker has three paid plans that are billed annually: Hobbyist, Premium and Unlimited. The first two cost $59 and $199 respectively, while Unlimited is billed based on the user.
TaxBit
TaxBit bills itself as the crypto tax company that works with regulators to offer unique crypto tax services to its clients. It also bills itself as the most secure crypto tax software, with its platform built by tax and security experts. According to their website, TaxBit is “Independently SOC2 Certified.”
Both individuals and businesses can use TaxBit to report crypto tax information and track their crypto portfolios. In addition, by collaborating with regulators, the platform ensures that it delivers cutting-edge services that comply with government regulatory requirements.
TaxBit considers data security to be of utmost importance and it also has various security certifications including SOC1, SOC2 and ISO27001.
You can access unlimited crypto tax reporting on TaxBit’s free plan with email support and connected wallet addresses.
The free plan also allows data integration from over 500 exchanges, blockchains and wallets, as well as the DeFi and NFT tax engine. You will also have access to all current year tax forms for all supported TaxBit network companies.
Taxbit’s paid plans include Basic from $50 a year, Plus+ from $175 a year, and Pro, which starts at $500 a year.
Coinpanda
Coinpanda calls itself “the global crypto tax solution”. With over 65 countries supported, the company probably deserves the title.
If you are from any of these countries, you can simply link your account to an exchange or wallet and receive your crypto tax report that is fully compliant with local laws.
In addition to capital gains, DeFi and NFT, Coinpanda also generates reports for mining, staking, airdrops, yield farming and other sources of income at no cost.
Of course, the software is integrated with the best crypto exchanges, including Binance, Coinbase, Gemini, Kraken and many others.
Coinpanda can generate tax reports for more than 150,000 transactions, with support for over 12,000 cryptocurrencies. You can try out the free plan, which allows up to 25 transactions, with access to unlimited exchanges and wallets.
The free plan also supports portfolio tracking, capital gains preview and tax reporting for DeFi, futures and margin trades.
If you don’t want to file your taxes yourself, Coinpanda has a list of certified tax professionals who can help you file your taxes accurately in accordance with local laws.
Is Crypto Tax Software Worth Using?
Crypto tax software is designed to make filing crypto taxes easy. Using them, you can submit your taxes in minutes and across many exchanges, wallets and blockchains. Using such software reduces the chances of making mistakes in tax registration and saves you time.
Therefore, they are worth using unless you prefer to do everything manually, which can be a daunting task.
