As the crypto industry grows, crypto tax filing has become a requirement for all crypto investors. This is true in numerous 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 numerous crypto tax programs out there, but here are a select five that you can use to file your crypto tax for the next tax season.
Cryptotaxcalculator is one of the best crypto tax software options. With it, you can easily identify, track, and organize crypto investments or trades on hundreds of exchanges, blockchains, and wallets.
When filing your taxes, Cryptotaxcalculator enables you to include your NFT, DeFi, and DEX trading history, leaving no detail out.
Specifically, the software is integrated with over 500 exchanges, blockchains, and wallets. Tax reports include derivatives and staking where supported, and you can download your reports for all financial years at any time within a valid subscription period.
There is also a package for accountants who manage multiple clients’ accounts, which enables them to harmonize their clients’ portfolios in one place.
While Cryptotaxcalculator is not free, it comes with a 30-day trial period, during which you can use the software to categorize all your transactions for free.
You’ll only be required to pay if you wish to view your tax report or after the 30 days elapse. Are you new to crypto tax? Here is everything you need to know about Bitcoin and crypto taxes.
The paid plans start from $49 per year for the Rookie, $99 for the Hobbyist, $189 for the Investor, and $299 for the Trader accounts.
ZenLedger is another great tool for accurately and easily filing your crypto taxes. Covering NFT, DeFi, and crypto just like Cryptotaxcalculator, ZenLedger also ensures that you only pay what you are supposed to pay and not a penny more with its crypto tax loss harvesting 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 grand unified accounting feature, which is a unique ZenLedger feature that lets you see your entire transaction history across all exchanges and wallets on a single spreadsheet, together with the associated calculated tax.
With this in place, you can connect with 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 using it for personal tax reporting. There is also a professional suite for tax professionals to help them manage client tax reporting.
In addition to helping with portfolio tracking, tax reporting, and filing, ZenLedger provides free information and guidance on crypto tax to help you make informed decisions.
ZenLedger paid accounts are Starter ($49), Premium ($149), Executive ($399), and Platinum ($999), billed yearly.
Cointracker is one of the biggest and most well-known crypto tax 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 get to 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-basis accounting methods and using tax-loss harvesting to prevent overpayment of tax.
Cointracker offers a free account with up to 25 transactions, just like ZenLedger, but its paid offers are far less attractive than those of Cryptotaxcalculator or ZenLedger.
Apart from dealing with 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 billed yearly: Hobbyist, Premium, and Unlimited. The first two cost $59 and $199, respectively, while the Unlimited is billed based on the user.
TaxBit touts itself as the crypto tax company that works with regulators to provide unique crypto tax services to its clients. It also regards itself as the most secure crypto tax software, with its platform built by tax and security experts. According to its website, TaxBit is “Independently SOC2 certified.”
Both individuals and enterprises can use TaxBit to report crypto tax information and track their crypto portfolios. In addition, by working with regulators, the platform ensures that it provides cutting-edge services that comply with government regulatory requirements.
TaxBit considers data security to be of utmost importance and so has different 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 tax forms for the current year for all supported TaxBit network companies.
Taxbit’s paid plans include Basic from $50 a year, Plus+ starting from $175 a year, and Pro, which starts from $500 a year.
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 connect 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 NFTs, Coinpanda also generates reports for mining, staking, airdrops, yield farming, and other income sources at no cost.
Of course, the software is integrated with top crypto exchanges, including Binance, Coinbase, Gemini, Kraken, and many others.
Coinpanda can generate tax reports for more than 150,000 transactions, with over 12,000 cryptocurrencies supported. 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 wish to file your taxes yourself, Coinpanda has a list of certified tax professionals that can help you accurately file your taxes in compliance with local laws.
Is Crypto Tax Software Worth Using?
Crypto tax software is designed to make the filing of crypto taxes easy. Using them allows you to file your tax within minutes and across many exchanges, wallets, and blockchains. Using such software reduces the chances of making mistakes in your tax filing and saves you time.
Therefore, they are worth using unless you prefer to do everything manually, which can be a daunting task.