This is 2023. You don’t need to be sitting down and doing your taxes yourself. This is the age of Artificial Intelligence (AI) and Machine Learning (ML). Surely you can delegate some of your work to software, especially when it comes to something as boring as taxes. Right? If you think like us, here are some of the 5 best crypto tax software to help you through in 2023.
Overview of the best crypto tax software
Preparing to file taxes is a time-consuming process. It can be challenging to stay on top of all transactions. Especially when you’re investing in crypto, and there are many transactions. Many investors understandably find it too much of a burden. This is where crypto tax tools are beneficial.
Crypto tax tools are basically software programs. They can help crypto investors improve their capital gain and loss calculations, transaction tracking, and the generation of accurate reports.
The top 5 crypto tax software in 2023
Here’s your list of the five most popular crypto tax calculators we could find for you.
1. CoinTracker
CoinTracker is a popular crypto tax software. It simplifies your life by importing transactions, tracking your portfolio, and saving money through tax loss harvesting. Further, the tool lets you do the math for over 10,000 types of crypto.
It can also generate tax reports in minutes. You can use it to compute your capital gains and profits, and losses and even consult a personalized Certified Public Accountant (CPA) under the unlimited tier.
The software also comes with comprehensive customer care in several countries, including the United States, the United Kingdom, Canada, Australia, and India. They also offer limited support in other countries.
Pros
- Application available for both Android and iOS systems
- Provides 12 distinct ways to submit tax returns
- Supports 10,000 cryptos
- Simple report generation for TurboTax or one’s accountant.
Cons
- For free mode, chat support isn’t a priority, and it supports only two wallets
- Can make only 25 transactions on the free plan
2. Koinly
Koinly is a well-known crypto tax software. It is unrivaled in terms of speed, allowing users to create a tax report in less than 20 minutes.
It also provides transaction sorting and advanced transaction filtering. Visitors can use this to determine which transactions resulted in specific gains.
This software can integrate a wide range of exchanges and wallets. So the chances that your transaction records are lost in the system are minimal. Users can also track all imported data and reconcile every fee on their exchange thanks to this automated data importing.
What’s more, connecting your wallets and exchanges is super simple. Simply upload a.csv file or use the API to connect your investment accounts. Then enable access so the software can import all of your account data. Because the software works with over 300 exchanges and wallets, it is among the most user-friendly and dynamic crypto tax software.
Pros
- A simple dashboard displays current profit and loss, ROI, total growth, and other statistics
- Provides a comprehensive tax return plan
- System of double-entry ledgers to track transactions more effectively
- Data import is automated
- Data can be exported to other tax software
- Great for overseas tax calculations and filing
- Compatible with 353 crypto exchanges, 14 blockchain addresses, and 74 wallets
Cons
- Free plan does not include a tax report
- No tax-loss harvesting tool
- Email support only available to Trader Plan subscribers
3. Accointing
This Swiss crypto tax tool makes tax work so much easier. It’s one of the best apps for those new to crypto. Because they probably won’t require the more detailed technological features in other tools.
The software comes with one of the most user-friendly interfaces, too. Beginners can easily import all transactions through the API Connect and manual input modes. You can also import data from various platforms and manage crypto profits and losses.
The tool works with over 300 wallets and exchanges and includes a useful tax-harvesting feature.
This crypto and Bitcoin tax calculator is designed to comply with IRS tax guidelines. That is one of its more amazing features. However, Accointing not only adheres to US regulations. It offers tax calculator iterations based in Switzerland, Australia, the United Kingdom, Germany, and Austria.
Pros
- A simple user interface to extract data easily
- Can create tax reports for the United States and Europe
- Customizable tax schemes
- Compatible with over 300 types of crypto and exchanges
- Tax-loss harvesting included
Cons
- The Hobbyist plan only allows for 500 transactions
- Non-Pro plans have limited customer service
4. TokenTax
This is software we would recommend for advanced users and corporations. It is a multispecialty crypto filing tax software that can calculate and file your taxes. The software is designed to calculate complex taxes for crypto exchanges. And its automation features make tax reporting simple and straightforward.
Additionally, the tax loss harvesting option allows you to reduce your client’s tax liabilities.
Pros
- Audit assistance
- International tax-loss harvesting software available
- Over 85 exchanges on board
Cons
- No free trial.
- The basic plan lacks key features
5. ZenLedger
ZenLedger is a software that simplifies the tracking and import of transactions. It helps make crypto taxes error-free and protect users from overpaying or overlooking transactions. The platform offers a variety of tax forms to meet various requirements. And it can do the math to help report capital losses and gains.
The tool also includes Grand Unified Accounting. This specialized feature consolidates all transactions from your various wallets into a single spreadsheet. It also allows for the tax-loss harvesting, which can save you some money.
ZenLedger supports over 400 exchanges as well as 30 DeFi protocols. It has an easy-to-use interface suitable for both new and seasoned crypto investors.
Extensive features apart, it also has a reputation for providing dependable customer support. Customers can seek help 24 hours a day, seven days a week, through email, chat, or phone calls.
Pros
- Easy tracking and combining of all transaction details
- Offers detailed tax reports and a variety of templates
- Includes tax-loss harvesting
- Outstanding customer service
Cons
- Only for US residents
- Unlimited transactions are pricey
As previously stated, each crypto tax software comes with its own set of advantages and disadvantages. Some offer comprehensive forms, while others offer tax-loss harvesting. Price differences may also impact your decision, so make sure to look up the charges.
FAQs
1. What’s the best crypto tax software?
While we have mentioned the top 5 crypto tax software in the article above, the best one depends on your needs and wants.
2. What is the best way to file crypto taxes?
Crypto tax software tools can be very handy when it comes to helping you file taxes as they automate the process. That said, do not hesitate to reach out to a specialist if you feel you need one. Because there is no single best way to file taxes that works for everyone.
3. Can I do my crypto taxes myself with crypto tax software?
Yes, you can. However, it’s better to be safe than sorry, so if this is your first time, seeking professional help may not be a bad idea.
