Buying, owning and selling cryptos isn't as easy as it was a few years ago from a taxation perspective. Especially for anyone in the USA, having a solid plan for your crypto tax liabilities is a must.
Crypto tax software platforms are created to facilitate the tax side of your crypto trading activities. These platforms keep track of your crypto trades, and will calculate any capital gains taxes you need to pay based on your location.
Without the assistance from these software platforms, you have to deal with many challenges – as trading cryptos isn't like trading with ETFs or stocks.
Using crypto tax software is vital to making sure that your outstanding crypto trades don't end up being a massive headache with the tax authorities.
There are a lot of platforms out there that can help you with paying taxes on your trading activities, and we have put together a list of ten crypto tax platforms that are worth your attention.
This list will give you a great start in finding the right crypto tax platform for your needs:
#1 Tokentax.co – Best software for calculating and filing your crypto taxes
The company is well known for not only their crypto tax software platform but also for providing full service for tax accounting for cryptocurrency investors and traders.
The firm operates with the objective of making the entire process of collecting crypto trading data simple, and turning that data into easy to file crypto tax returns.
The platform provides three main functions:
- Connecting to exchanges
- Tracking trading activity
- Filing your tax return
Specifically, TokenTax is the only crypto tax calculator which enables connections to every major crypto exchange. This means wherever your data is, the platform will be able to import as well as reconcile all of the data in the records of your trading history.
The platform will also track your trading activity by providing a comprehensive account from the perspective of your profits and losses in terms of capital and tax liability for all relevant tokens and transactions.
Importantly, it has a Tax Loss Harvesting tool that will allow you to make tax-smart trades at the end of the financial year.
Last but not least, the “File your tax return” function on TokenTax will create all the required tax forms that would be used on IRS Form 8949 in order to prepare for your tax return. At this stage, if you find it is difficult to file your own taxes, the firm's tax filing team will be available to take care of the whole filing process.
Let’s have a quick look at the features that are offered by TokenTax to learn more about the platform.
The platform includes a variety of features:
- Generating tax reports
- Generate trading taxe reports for contracts on Bybit, Deribit or BitMEX
- Tax Loss Harvesting tool to optimize your year end positions
- Tax Professional Suite that has the ability to reconcile all the transactions as well as create tax forms for every situation
- Facilitating international taxes if foreign currencies are involved
Another brilliant feature of TonkenTax is that the platform offers conections to almost every exchange, such as Binance, BitMEX and Coinbase and also allows the automatic importation of API keys, as well as uploading the trading history manually.
Overall, this is a great set of tools that is geared specifically for crypto tax liabilities, and also works with all of the popular exchanges in the market.
#2 Cryptotrader.tax – Runner-up
The second crypto tax software we think offers a fantastic value is CryptoTrader.tax. This platform is specifically made for crypto taxes, and helps traders and investors prepare and file crypto taxes.
The platform provides step-by-step assistance for its clients when importing crypto transactions that may have tax liabilities attached to them.
After completing the simple importation process, users’ tax form will be automatically published on a professional dashboard where these can be viewed, downloaded and filled.
The main features that are included in CryptoTrader.tax are listed here:
- The possibility to automatically generate tax reports by using transaction data that is imported into client’s CryptoTrader.tax platform
- The dashboard allows clients to accessing every account while supporting the reconciliation of all missing transactions
- CryptoTrader.tax guides its users through all the steps when importing crypto transactions in the most secure way possible based on the capacity to automate the whole process
- The platform also assists clients in preparing cryptocurrency taxes for both accountants and tax professionals. By using the Crypto Taxes 101 guide, clients will find all of the necessary information and practices for cryptocurrency taxation liabilities
ZenLedger is designed to simplify crypto and DeFi taxation and for both investors and tax professionals. The software lets authorized persons track a clients’ crypto trading activities, and puts profits in a simple format so that there are no overpayments.
The user's guide for ZenLedger is pretty simple and contains three main steps:
- Importing transactions to generate a comprehensive cryptocurrency tax report
- Reviewing transactions to make sure that all the needed data is imported successfully (if there are any missing transactions, the platform's custom-built resolution center will assist you in identifying any data gaps)
- Finally, you will be able to download your IRS compliant forms – Form 8949, Schedule D, Schedule 1 and Grand Unified Accounting reports, as well as a Tax-Loss Harvesting report
ZenLedger also supports over 400 different platforms as well as many DeFi protocols. The software has a variety of different tokens, fiat currencies, e-wallets and DeFi platforms, although it is a good idea to check its list to make sure it fits your needs.
Accointing is an all-in-one crypto management platform that also has super easy crypto tax tools. In order to use this crypto tax solution, it is necessary to use it to manage and track all your crypto holdings.
The upside to this is that the platform does just about everything, from giving you a portfolio snapshot across multiple wallets and exchanges, to doing advanced market analysis.
Once you have entered all your token holdings into the platform, the company claims that you can file your crypto taxes in just five easy clicks. This platform isn't crypto tax specific, but it does offer you a lot of options if you have a deep token portfolio.
CoinTracking was crafted to analyze crypto transactions while supporting its clients with real-time reports to manage a trading operation. The platform will be able to determine the value of your portfolio, and any possible gains.
Of course, it creates reports for taxation purposes as well. The platform has more than 720,000 active users, 9204 coins and the total asset of all portfolios has been as high as $24.7 billion.
Like other crypto tax software, CoinTracking offers integration with different trading platforms via its ability to import trading data directly from Binance, Bitfinex, BitMEX and so on. You should be able to use this platform for most crypto tax filings.
Cointracker is more than a simple crypto tax accounting platform.
It will track your portfolio's performance as well as tax liabilities for your cryptocurrency assets. The only thing you have to do is connect your wallets or exchanges accounts, and the remaining work will be performed by the software.
The platform allows its clients to track tracking activities, margin trading. It handles millions of transactions from users spread out over 2500 cryptocurrencies and 300 exchange platforms.
BearTax will support traders and investors in tracking transactions from everywhere in the cryptoverse. It works with most of the major exchanges to track your performance, as well as to create relevant tax documents for your cryptocurrency trading operation.
The software offers the integration with over 50 exchanges via CSV and API interfaces for importing data. Like other tax software on this list, BearTax automatically generates tax documents in different formats like IRS Form 8949, TurboTax Direct and TaxAct Direct Import.
Another fast and affordable crypto tax software is Koinly which will support you in creating tax reports in only 20 minutes. How about that for fast turnaround?
The software calculates your crypto taxes and then helps to reduce your payable tax for the next year in any way it can. The software works in more than 20 countries, has no fees for creating a preview report, and it also creates documentation like IRS Form 8949 and Turbotax documents.
Similar to CoinTracker, Koinly also supports integration with over 300 wallets and exchange platforms for importing transaction data with ease.
Blockpit is designed to optimize all tax reports for cryptocurrency trading. Unlike other software on this list, Blockpit offers cooperation with partners such as Linde, Stadler Volkel, Venionaire, Coinfinity and European Super Angels Club.
The software also features automatic import, which means you will be able to sync your transaction data via API and CSV for importing purposes. Besides that, the platform can also help clients to manage their crypto portfolio with real time data tools.
Blox was developed to be a multi-purpose cryptocurrency kit. It can generate taxation reports, and also help to track and manage crypto portfolios in an automated and precise way. The software offers many different features to its clients.
Blox includes the following tools:
- Auto tracking and syncing data from different wallets and exchanges
- Providing Financial Tools for a CPA or other tax professional that can be exported via CSV files
- A real-time dashboard that assists you in viewing your asset while analyzing historical performance with data driven tools
- Bookkeeping for historical transactions and creating financial reports
- High security and privacy abilities with a “Read-only” mode that offers additional custom-made sharing options for enterprise users. This function operates with both TouchID and FaceID, as well as admin authority
Getting on Top of Your Crypto Taxes
With all these great crypto tax tools, there is no excuse for falling behind with your crypto tax filings. While the new tax codes that have been created for digital assets aren't as streamlined as other asset classes, there are work class tools that are here to make your life a lot easier!