If you’ve carried out any crypto transactions, you have to report your income on your tax return. Documenting this whole process can be exhausting for some people, and the best option is to sign up for crypto tax software to handle the task.
At Wegotrend, we have researched and tested top crypto tax software with its distinct features. You don’t have to go through long hours of research to pick what’s best for you.
Cryptocurrency has gained global adoption. However, it is also important to abide by tax laws and regulations.
Top Crypto Tax Software
Crypto tax software is a tool that helps you to calculate your loss and profits from trading crypto. It helps to prepare your crypto-related taxes.
Software A: Koinly
It is a crypto tax software that provides tax reports in minutes. You can check for your gains and expected returns. With Koinly, you can also fix transaction issues. You can track your portfolio across your wallets. Koinly supports over 50 wallets and 6000+ coins. You can use it on over 350 exchanges.
Pros
- Koinly is available at different levels and prices (Newbie, trader, pro, etc.).
- It is for staking and DeFi interactions
- Koinly supports over 50 wallets, 350+ exchanges, and 6000+ coins.
- Koinly works with a lot of tax offices.
Cons
- If you are a frequent trader, you’ll spend more on this app.
- It is more expensive than other crypto tax platforms.
Software B: CoinLedger
There is an extra function on crypto income in CoinLedger. This function makes it a unique choice for crypto enthusiasts who work in the crypto industry. This tool has a guide on how to go about importing your crypto transactions more easily.
With CoinLedger, you can easily import your transactions from any crypto platform. You can use it to obtain data on all your crypto activities, mining, staking, and airdrops. You’ll also have access to educational resources about cryptocurrencies.
Pros
- There is a free version
- You can transfer your transaction history
- It has international support
- There is a free portfolio tracking function
- 14-day money-back guarantee
Cons
- It doesn’t support all crypto wallets
- CoinLedger doesn’t accept cryptocurrency payments for services.
Software C: TurboTax
TurboTax is easy to use. You can always file your tax returns for individual or business use. With TurboTax, it is easier to get your exact tax returns. It obeys task laws and integrates them into its software. An expert can also handle the tax filing process for you. TurboTax supports a lot of exchanges and up to 4000 coins.
Pros
- There is a step-by-step guide for usage
- You get a review from a tax expert
- It is accurate in operation and pays attention to details
Cons
- Live expert assistance has additional costs attached to it
Software D: TaxBit
It is cost-effective and gives you tax reports via its integration automation technology. It implies you do not need human interference to get your tax report. The dashboard reflects your tax position, profits, and losses.
Pros
- Ease of use
- It supports most crypto exchanges
- Efficient customer service agents
Cons
- CSV file parsing (only manual formatting is allowed)
Software E: CoinTracker
With CoinTracker, you can track your crypto portfolio and taxes. It supports over 9000 cryptocurrencies and 300 exchanges. You can also check your market value and investment performance. CoinTracker helps in exporting crypto tax data to TurboTax or TaxAct. It supports audit trail, cash flow analysis, and capital gain calculation.
Pros
- The first 25 transactions are free for the free plan
- User-friendly interface
- There are services available for NFT and DeFi assets
Cons
- You can’t get access to customer service with the free plan
- It’s expensive
Importance of Crypto Tax Software
It’s hard to get your tax information when you use several exchanges and wallets. Tax software can save you money and reduce the possibility of wrong calculations. This tool is significant to those who buy, sell, stake, and trade crypto.
With Crypto tax software, your transaction data is timely, including your income from mining or other crypto activities. Crypto tax software can save you from tax laws and regulations as they obey the rules.
The Crypto tax software we have put on this list would be a good way for you to get accurate tax returns while complying with tax laws.
Factors to Consider When Choosing Crypto Tax Software
Get software that transfers transaction data directly from your connected wallets and exchanges.
Good tax software allows for 24/7 customer support. You can always reach out whenever you experience any challenges. Ensure you test out the software before making any purchase.
Conclusion
With many exchanges and wallets in use, it is hard to keep track of our transaction information. With crypto tax software, we are relieved of that stress. You can import your transaction data from exchanges and wallets and get your tax information.
Test out the software before making any purchase, and get one to save yourself the stress of manually recording your tax returns.
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