Best tax software for crypto


Many people first got into cryptocurrency in 2021, and with tax season approaching, many of these new crypto investors are now scrambling to find the best tax software for crypto. If you’re one of the many people in this situation who need help figuring out how to account for your gains and losses on your returns for the year, look no further. Below, we’ve rounded up the best tax software for crypto traders and investors so you can navigate the 2021 tax season like a pro.

TurboTax

  • Pricing: $69 for Premier plan, $89 for Self-Employed plan
  • Free try: Start for free and only pay when you deposit
  • Platforms: Windows, Mac, Android, iOS, ChromeOS
  • Expert help available: Yes
  • Crypto exchange integration: Yes, with Coinbase
  • Special Features: Free edition available for simple returns, but does not cover crypto

TurboTax is a name almost everyone has heard, which is no surprise considering it’s been around for as long as do-it-yourself tax software has been around. However, it might surprise some to see it on a list of the best tax software for crypto. TurboTax isn’t cryptocurrency-focused, but its $69 Premier plan lets you calculate and include your crypto trading gains and losses on your tax return. The $89 plan for freelancers also includes this, along with other add-ons aimed at freelancers, entrepreneurs, and small business owners.

In addition to crypto, TurboTax Premier accounts for other investments such as stocks, bonds, ETFs, and rental properties. TurboTax does not interface with crypto exchanges, but the software makes it easy to import documents provided the trading platforms you use allow you to upload your profit and loss reports.

TurboTax works on Windows, Mac and Chrome OS computers as well as Android and iOS devices, and you can start your taxes for free – you only pay when you file. Note, however, that currently the $69 Premier and $89 Freelancer plans are the only ones that include crypto reporting, and discounted pricing is only available until February 28, so act fast! Nonetheless, if you are looking for the best tax software for crypto that offers a host of reporting options for all your other sources of income.

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TaxBit

  • Pricing: Free for individual filers using the TaxBit network, $50 for the basic plan
  • Platforms: Browser-based
  • Expert help available: Yes, with the basic plan
  • Crypto exchange integration: Yes, over 500 exchanges and wallets
  • Special Features: NFT and DeFi support

The influx of crypto traders and investors has led to a number of tax reporting services aimed specifically at cryptocurrency. TaxBit is ranked among the best tax software for crypto because it is free for individual filers. There are also paid enterprise solutions for managing reports for businesses. The Enterprise Tax Center package allows organizations to manage income and other data for multiple people and automates much of the reporting work for you (such as collecting tax losses), while the Enterprise Accounting Suite is useful for managing the books if your business deals with crypto, DeFi or NFT.

For individual filers, however, the regular TaxBit filing service is free, as long as you report income from institutions on the TaxBit network. This network includes over 500 exchanges and other platforms involved in crypto (such as PayPal and NFT marketplaces). TaxBit interfaces directly through these platforms via its API, allowing you to easily import your profit and loss reports for easy filing. A few platforms supported by the TaxBit network include Binance, Uniswap, Coinbase. FTX.us, BlockFi, Gemini and PayPal. This connectivity ranks TaxBit among the best tax software for crypto if you are looking for a streamlined and largely automated filing process.

There are also no limits on crypto income or earnings, even for the free plan – provided you report institutions on the TaxBit network. However, if you need to import report data from off-net platforms, you will need to sign up for at least the basic $50 plan. The basic plan also lets you import historical tax returns if you need to and offers live web chat support if you need help at any point in the filing process. TaxBit is also browser-based, so you don’t have to worry about downloading any software.

ZenLedger

  • Pricing: Free Basic Plan, $49 for Starter Plan, $149 for Premium Plan
  • Free try: No, but basic free plan available
  • Platforms: Browser-based
  • Expert help available: Yes
  • Crypto exchange integration: Yes, over 500 exchanges and wallets
  • Special Features: NFT and DeFi support (Premium and Executive plans only), TurboTax integration, professional consultations available

Another excellent tax software for crypto is ZenLedger, which is one of the best choices for basic users. It’s a bit limited for active crypto traders and DeFi users, but for those who have smaller positions, are less active in their investments (maybe you bought Ethereum and Bitcoin like long-term investment, but don’t trade it much), ZenLedger is more than enough. Like TaxBit, ZenLedger can connect to over 500 crypto exchanges, wallets, and related platforms, allowing you to easily import your win/loss information to streamline the process a bit. ZenLedger can then analyze your trading history to calculate your gains and losses for automatic tax loss harvesting, ensuring that you take advantage of any tax savings to which you are entitled.

ZenLedger offers a basic free plan that allows reporting of up to 25 crypto transactions and does not include support for NFT transactions or token staking. The $49 Starter plan allows up to 100 trades to be reported, but also doesn’t work with NFTs and staking – for that you’ll need to sign up for at least the $149 Premium plan. The Premium service allows you to report up to 5,000 crypto transactions on your tax return, although it is one of the more expensive plans for heavy crypto users.

Our conclusion is that ZenLedger is one of the best crypto tax software for very basic users who do not actively trade tokens, buy or sell NFTs, or do any staking or other activities. related to DeFi. It’s certainly not the best crypto tax software for active traders and those involved in the DeFi scene, however – you’ll be better served with TaxBit or Koinly if you fall into those camps.

Koinly

  • Pricing: Free Basic Plan, $49 for Beginner Plan, $99 for Hodler Plan, $179 for Trader Plan
  • Free try: Start for free and only pay when you deposit
  • Platforms: Browser-based
  • Expert help available: No
  • Crypto exchange integration: Yes, over 400 exchanges and wallets
  • Special Features: Reports for 20+ countries, DeFi support, tax software integration

As you might have guessed just by looking at the name, Koinly is another self-reported tax app designed specifically for cryptocurrency investors. Koinly can sync with over 350 exchanges and 50 wallets, so although its network integration is a bit more limited than TaxBit and ZenLedger, you still have the most commonly used platforms covered. Koinly can automatically sync data from popular exchanges and wallets such as Coinbase, Binance, Crypto.com, Kraken, KuCoin, and Electrum, though Uniswap is notably absent.

Once synced, you can easily download your transaction data for reporting purposes. Koinly can then easily calculate profits and losses for capital gains reporting and tax loss harvesting, and it can also sort through everything to find and fix errors such as double-logged transactions. Koinly’s pricing structure also makes it one of the best choices for advanced traders looking for crypto tax software: its basic free plan lets you report entries from both trading activity and DeFi, although this is only for US filers and does not include TurboTax, TaxAct Software Integration or H&R Block. Paid plans allow you to export your reports directly to your tax software and can also generate reports for other countries including the UK, Canada and Germany.

There are a few downsides to Koinly that keep it from being the absolute best tax software for crypto. As we mentioned, it currently does not support Uniswap. NFT support is also notably absent (meaning you may need to calculate NFT-related wins and losses separately). Also, the free basic plan doesn’t give you a Form 8949, Schedule D – you’ll also have to fill it out yourself. If you can live without these features, Koinly ranks among our favorite crypto tax software, especially if you can take advantage of the free package.

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