Taxes can be hard to keep track of when investing in cryptocurrencies because the rules are always changing. However, the creation of specialised crypto tax software has made it easier to deal with the complicated nature of tax obligations. The best crypto tax software has a lot of features that are designed to meet the specific needs of traders, investors, and miners.
These software programmes are made to make it easier to figure out your capital gains, losses, and tax obligations for a wide range of digital assets and transactions. They work perfectly with well-known cryptocurrency wallets and exchanges, making it easy for users to import their transaction history. Users can make accurate tax returns and forms that they need to file with the government because the reporting tools are very good. Below, we have mentioned the best crypto tax software.
What is Crypto Tax Software?
Crypto tax software is a programme that helps people and businesses figure out and file their taxes for cryptocurrency transactions. It makes it easier to keep track of trades, gains, losses, and other events that are taxed that happen across many digital assets. Crypto tax software works with cryptocurrency exchanges and wallets to import transaction data. It then figures out a user’s tax obligations based on tax laws and rules, makes tax reports, and helps users stay in line with tax authorities. It makes crypto taxation easier and makes sure that reports are correct.
Best Crypto Tax Software Comparison Table
Crypto Tax Software simplifies cryptocurrency tax calculation. It tracks and reports digital asset capital gains, losses, and income automatically. These platforms integrate with cryptocurrency exchanges and wallets to provide detailed tax reports and ensure tax compliance, relieving crypto investors and traders.
| Feature | CoinTracker | CoinLedger | Accointing | CoinTracking | Koinly |
|---|---|---|---|---|---|
| Free Plan | Limited transactions | Limited transactions | Limited transactions | Limited transactions | Yes, up to 200 transactions |
| Tax Reports | Generates tax reports for various countries | Generates basic tax reports | Generates tax reports for US & Canada | Generates tax reports for various countries | Generates tax reports for various countries |
| NFT Support | No | Yes | No | No | Yes |
| DeFi Tracking | Yes | Yes | Limited | Yes | Yes |
| Portfolio Tracking | Basic features | Basic features | Advanced features | Advanced features | Advanced features |
| Ease of Use | Easy | Easy | Intermediate | Intermediate | Intermediate |
CoinTracker
Features:
- Cryptocurrency portfolio tracking.
- Real-time balance and transaction monitoring.
- Tax reporting and calculation for cryptocurrencies.
- Integration with multiple exchanges and wallets.
CoinTracker is a great choice if you want to do your crypto taxes online and get good customer service. You can email the company for help, and it says that live chat is “coming soon.” You can also use CoinTracker to find a crypto expert who can help you do your full tax return and give you legal tax advice. When you hire a CoinTracker pro, there is usually a fee. Currently, this is one of the best crypto tax software.
Pros
- User-friendly interface for tracking cryptocurrency portfolios.
- Supports a wide range of cryptocurrencies and exchanges.
- Provides tax reporting features for better financial management.
Cons
- Some users may find the pricing plans expensive for advanced features.
- Limited customer support options.
CoinLedger
Features:
- Cryptocurrency portfolio management.
- Real-time tracking of cryptocurrency holdings.
- Transaction history and reporting.
- Tax calculation and reporting features.
CoinLedger is well-known crypto tax software that has helped more than 400,000 people. To make tax returns, you only need to follow three easy steps. To start, you’ll need to link your exchange and wallet. CoinLedger will look over your transactions and show you a draft report in a few minutes. Overall, this is one of the best crypto tax software.
Pros
- Simplifies cryptocurrency portfolio management.
- Provides detailed transaction tracking and reporting.
- Supports multiple cryptocurrencies and exchanges.
Cons
- Limited integration options with third-party platforms.
- User interface may not be as intuitive for all users.
Accointing
Features:
- Cryptocurrency portfolio tracking and management.
- Comprehensive tax reporting for cryptocurrencies.
- Integration with multiple exchanges and wallets.
- Real-time balance and performance monitoring.
Accointing is yet another excellent choice for cryptocurrency traders who are active and have a diversified portfolio holdings. If you consistently dollar-cost average your investments, which means that you have multiple cost prices, then this is especially true for you. Traders are able to minimise their tax obligations by utilising the holding period tool that Accointing provides. This is the best crypto tax software that you can consider.
Pros
- Comprehensive cryptocurrency portfolio tracking and tax reporting.
- Integration with various exchanges and wallets.
- User-friendly interface with customizable reporting options.
Cons
- Pricing may be prohibitive for some users.
- Some users may experience occasional bugs or glitches.
CoinTracking
Features:
- Cryptocurrency portfolio management and tracking.
- Detailed trade analysis and reporting.
- Tax reporting and calculation for cryptocurrencies.
- Integration with numerous exchanges and wallets.
CoinTracking is a good option if you need help filling out your crypto tax returns. You can share information directly with your accountant using this crypto tax software, and it comes with detailed tutorials to help you finish your reports. More than 75 countries’ crypto tax laws can be found on CoinTracking, which is one of its benefits. Overall, it is one of the best crypto tax software that you can consider.
Pros
- Offers advanced features for tracking cryptocurrency portfolios.
- Supports a wide range of exchanges and wallets.
- Detailed tax reporting functionality for compliance purposes.
Cons
- Learning curve for new users due to feature richness.
- Some users may find the interface overwhelming.
Koinly
Features:
- Cryptocurrency tax calculator and reporting tool.
- Real-time portfolio tracking and management.
- Integration with major cryptocurrency exchanges and wallets.
- Support for multiple fiat currencies and tax jurisdictions.
A cryptocurrency tracking and tax reporting platform, Koinly was established in the year 2018. Currently, the platform is accessible in over twenty different countries. In order to provide users with an overview of their income, Koinly allows them to view all of the cryptocurrency that they have earned through mining, staking, and DeFi. Still, it is one of the best crypto tax software that you can consider.
Pros
- Simplifies cryptocurrency tax reporting and portfolio tracking.
- Supports a variety of exchanges, wallets, and currencies.
- Automated transaction tracking for efficiency.
Cons
- Pricing plans may not suit all users’ budgets.
- Customer support response times may vary.
Tips for Optimizing Your Crypto Tax Reporting with Software
Using software to optimise your crypto tax reporting can speed up the process and make sure you follow the rules. Here are some suggestions for getting the most out of crypto tax software:
How to Pick the Right Software: Choose crypto tax software that you can trust and that fits your needs. Look for things like the ability to work with multiple wallets and exchanges, the ability to automatically track transactions and do tax calculations, and the ability to connect to platforms for filing taxes.
Combine Your Transactions: Make sure that all of your cryptocurrency transactions are correctly recorded and combined in the software you use for tax purposes. Bring in transaction information from all of the exchanges, wallets, and trading platforms where you do crypto business.
Verify Transaction Accuracy: Look over the imported transaction data and make sure it is correct to find any mistakes or information that is missing. Add any transactions by hand that weren’t imported automatically or may have been missed.
Correctly Classify Transactions: Put each transaction into the right category based on its type (buy, sell, trade, or transfer) and the tax effects that come with it. Make sure that transactions are correctly classified so that you can figure out your gains, losses, and tax obligations.
Figure Out Gains and Losses: The software has built-in tools and features that can be used to figure out capital gains and losses for each crypto transaction. The software should figure out gains and losses for each asset based on its purchase price, sale price, and time held.
How to Choose the Best Crypto Tax Software for Your Needs
A lot of things need to be carefully thought through in order to find the best crypto tax software for your needs. To help you make an informed choice, here is a list:
Supported Exchanges and Wallets: Make sure that the crypto tax software works with the wallets and exchanges that you use to buy and sell cryptocurrencies. The software should be able to automatically import transaction data from well-known wallets and exchanges. This will save you time and effort from having to enter the data by hand.
Correctness and Compliance: Pick crypto tax software that correctly figures out your tax obligations based on your past transactions and the tax rules in your country. Check to see if the software follows all tax rules and laws, such as the ones that say you have to report capital gains, losses, and income from cryptocurrency transactions.
User Interface and Ease of Use: Crypto tax software should have an easy-to-understand interface and features that are simple to find. When you import transactions, sort trades into categories, and make tax reports, the software should walk you through the process in a way that is easy to understand.
Automation and Integration: Check to see if the crypto tax software can automate tasks and work with accounting software or tax filing platforms. Automation can speed up the tax filing process and lower the chance of making mistakes or leaving out information when you do your calculations.
Security and Data Privacy: Choose crypto tax software that puts security and data privacy first. Make sure the software follows best practices for data security in the industry and uses encryption protocols to keep sensitive financial information safe.
FAQs
Koinly’s free plan imports 10,000 transactions, has 750+ integrations, and offers a tax preview.
On Trustpilot, CoinLedger and Koinly rank highest. Customers complain about CoinTracker’s customer service.
