5 Best Crypto tax software for 2023:(free and paid)
In this article, we will review the best crypto tax software for 2023. There is a lot of confusion when it comes to crypto taxes. Which software should you use? How do you report your gains and losses? Do you need to pay taxes on every transaction? . We will also answer some of those questions on crypto taxes here. so, without wasting time.
What are the best Crypto tax software?
1. Koinly
Pros:
- 10,000 transactions on free plan!!
- Also offers support to businesses & accountants
- Available in over 20 countries
- They let you preview tax report for free
- upload direct to TurboTax & TaxAct
- Preview your capital gains tax for any year for free!
- Uses AI to detect transfers between own wallets
- They offer custom solutions for traders with significant transactions
2. TokenTax
Pros:
- amazing customer service
- Tax loss harvesting dashboard available
- TurboTax Integration
- API and wallet integrations
- Margin trading support
- capital gains and loss for any country
- Mining and staking income report
- International tax forms and tax report
- they also offer enterprise solutions for businesses and select investors with complex need
- offers solutions to Corporations with crypto holdings, NFT artists, VC firms, those using unsupported chains, complex use of cross-chains, high net worth individuals
- 10% off on multi-year purchase
3. ZenLedger
ZenLedger crypto tax software supports over 400 exchanges, Coinbase, crytpo.com being a few, and including over 100 DeFi protocols, 10+ NFT platforms. ZenLedger also has Cryptocurrency “Tax Professional Suite” which is specifically created for tax professionals that help them prepare and file taxes for their clients.
Pros:
- Includes a free plan
- Great for DIY
- Amazing customer support
- Upload transactions to Turbo tax direct
- Includes Tax-loss harvesting tool
- Offers two-factor authentication-2FA
- can also track asset portfolio
- All plans offer a 1-year refund policy!
- NFTs and DeFi are supported by Tax Professional prepared plans
Cons:
- Tax professional prepared plans are a little expensive
- Unlimited transactions only available in the Platinum plan
4. CoinTracker
CoinTracker offers solutions for crypto taxes, Enterprises, and accountants all in one place, but below am going to focus only on crypto tax software for individuals. They also offer a crypto portfolio tracker if you are interested!
Pros:
- Mobile app available for both ios & android
- full support for the US, India, UK, Canada, and Australia
- Real-time tax loss harvesting tool available
- file directly with Turbotax, H&R block or your own accountant
- 30-day money-back guarantee!
- you can even preview the tax impact of the transactions you are planning to execute
- Free plan available
Cons:
- Tiered pricing for >1000 transactions
- Margin trading support only on Premium and Unlimited plan
5. TaxBit
Taxbit supports over 500 exchanges, from trading activity tracking to calculating tax liabilities and portfolio performance and it’s great for both enterprises & individuals. Individuals can easily import data via API or upload using a CSV file. What’s great about TaxBit’s platform is that it connects the digital assets ecosystem across enterprises, individuals, and the government.
Pros for individuals:
- individuals download completed tax form 8949 for free!
- Free plan available
- great features on paid plans like portfolio performance tracking
- optimize tax loss harvesting with paid plans
- website claims unlimited transactions on free plan
Pros for enterprises:
- They offer tax reporting solutions and enterprise accounting
- The accounting suite easily integrates with ERP systems
- automate enterprise accounting and taxes in one platform
- GAAP & IFRS compliant entries mapped to chart of accounts
Cons:
- Free plans for individuals have limitations
You may also want to check out Accointing (Bonus)
Accointing
Pros:
- can generate a free tax report with up to 25 transactions
- they offer Tax-loss harvesting
- can track unlimited transactions in the portfolio tracker
- Mobile app available for ios & Android
- 30-day money-back guarantee for paid plans
- No credit card is needed for the free plan
What are Crypto tax software?
Crypto tax software refers to a set of tools that helps investors and cryptocurrency traders calculate and file their capital gains taxes on digital assets. While the exact features and functionality of different crypto tax software products may vary, they typically include a portfolio tracking feature that automatically calculates gains and losses, as well as a tax filing feature that helps users prepare and file their capital gains tax returns.
Some crypto tax software products also offer additional features, such as tax loss harvesting and expert support from CPAs or tax attorneys. For investors and traders who generate significant amounts of income from cryptocurrency trading, investing in a good crypto tax software product can help save time and money come tax time.
Are crypto tax software safe?
Normally they are but it’s always best to only go after the most popular ones like those mentioned here. Basically, you should work with those tax preparing software that looks to access only your crypto trading activity so that they can accurately calculate taxes.
Do you pay taxes for crypto?
The answer to this depends on individual circumstances. Yes, you would have to pay capital gains taxes if you are selling crypto for cash/dollars, converting from one crypto to another, or spending it on goods or services, and then there are short-term vs long-term capital gains depending upon how long you hold them. You could also get taxed as income for getting paid in crypto or mining crypto. source: Coinbase
How does crypto tax software work?
Basically, you sync the tax software with the exchange where you hold the cryptocurrencies. Once connected, tax software recognizes the transactions or trading activity and then calculates the capital gains or losses based on the tax laws in the country that you are working with. If you are in the US then the software, like the ones mentioned above can also sync with TurboTax, H&R Block or one can file taxes manually with the IRS.
Best crypto tax software for TurboTax?
One can choose between Koinly, TokenTax, ZenLedger & Cointracker to upload the tax forms directly to TurboTax.
Best crypto tax software for H&R Block?
CoinTracker is a good option if you are looking to file your tax returns with H&R Block.
Conclusion
What is the best software to file crypto taxes?
While there are a number of different crypto tax software products on the market, there is no one-size-fits-all solution for everyone. Some factors you may want to consider include the cost, the level of support offered, and the range of features available. With so many products on the market, there is sure to be a crypto tax software that meets your needs.
Koinly, ZenLedger, and TokenTax are all great options for those looking for a comprehensive solution for their crypto taxes. Each product has its own strengths and weaknesses, so be sure to evaluate each one carefully before making a decision.
Happy filing!
