5 Cryptocurrency Tax Software to Help You File Your Taxes

Crypto tax software is a machine that helps you prepare taxes for your digital digital assets. This article will discuss 5 cryptocurrency tax software to help you file your taxes. 

More people are engaging in cryptocurrencies daily. This is because it can quickly turn you into a millionaire or even a billionaire.

However, figuring out how to pay your taxes for trading on crypto sites can be challenging.

You will likely make several deals in a year if you are a cryptocurrency investor. Only some people can track all these deals and determine their net profit or loss.

Crypto tax software can help you. It syncs your crypto wallets and exchanges instantly, figures out your capital gains and losses, and gives you final tax reports that you can use to file your taxes.

What is the need for Crypto Tax Software?

Taxes are a pain to file. Keeping track of all the deals when investing in crypto can be challenging. 

Besides that, you’d have to figure out the tax that applies to that action by hand. A lot of buyers may need more time to handle this.

Coin tax tools are helpful for this reason. These software programs make it easier to keep track of transactions, figure out capital gains and losses, and make correct reports. 

You might want to use a crypto tax software tool for multiple reasons. Some of the reasons we need Crypto Tax Software include;

1. Automated data input
2. Integrations
3. Security
4. Ready-to-Use paperwork

Automated Data Input 

Everything in crypto moves quickly. Crypto tax software removes the need to keep track of things like the transaction date, the amount of tokens involved, their price at the time of the transaction, and so on.

The crypto tax program keeps track of all the information and shows it in an easy-to-read spreadsheet. 

Also, easy-to-use crypto tax tools ensure almost no mistakes in the calculations. This is very important for skilled traders who do daily business. 

Integrations 

A vital thing that your crypto tax tool should have is the ability to work with all stablecoins, well-known tokens, and platforms. 

You can then use that one app to keep track of everything you do, even if you trade in different cryptocurrencies. 

It’s too much work to switch between apps and figure out taxes on tokens that a crypto tax tool needs to support by hand. 

If you buy software that can do many different things, you can trade more without considering your taxes at the end of the year. 

It’s also essential that you can use the program from where you live. Because tax laws are different in each country, the app should show you the tax rules in your country.

Security

When it comes to software that handles your profit information, it should be safe and effective. 

A reliable crypto tax software will always give you correct results, keep your data safe, and have an easy-to-use interface that lets you find all the features and information you need.

If you choose crypto tax software you can trust, there will be no mistakes on your tax return that could get you fined. You can get an idea of the tool’s accuracy by reading reviews from other users.

Ready-to-Use Paperwork

Crypto tax tools keep track of all transaction details, calculate tax, and provide downloadable tax documentation. 

Pre-filled forms, such as the IRS Form 8949, are included in most crypto tax software packages, simplifying the tax filing process. The IRS form is just one of many available in pre-filled formats. 

In addition to keeping up with the most recent tax laws, these systems typically provide audit tracking, data on gains and losses in real-time, and other essential documentation.

5 Cryptocurrency Tax Software to Help You File Your Taxes 

We’ve compiled a list of the best crypto tax software tools for 2023 so that you can trade in crypto without worrying about making tax mistakes. 

These tools can automatically keep track of all transactions, whether they are mining or selling. You can make records ready to send to the IRS or your accountant.

1. Koinly
2. CoinTracking
3. CoinLedger
4. Accointing
5. ZenLedger 

Koinly 

Koinly is crypto tax software that cuts down on the time it takes to make a crypto tax report. For free, it lets you know how much capital gains tax you’ll have to pay. 

You can also keep track of your projected capital gains on crypto over time so that you don’t get a nasty surprise when tax time comes around.

Koinly has a crypto tax answer that works with more than 350 exchanges, more than 50 wallets, and over 6,000 coins. 

It works with NFT and DeFi taxes, but NFTs must be entered by hand. Koinly works in the U.S., UK, Canada, Australia, and many other countries, and it has an easy-to-use layout.

Pros

1. Profit and loss, overall growth, return on investment, and other metrics are displayed in real-time on an intuitive dashboard.
2. Detailed financial accounts 
3. Double-entry ledger system for better transaction tracking 
4. Allowing importing data and automating data exporting to other countries.
5. Excellent for filing and calculating taxes in multiple countries,
6. supports 353 cryptocurrency markets, 74 wallets, and 14 blockchain addresses.

Cons 

1. Tax report is not part of the free plan.
2. Email support is only for people who have the Trader plan.

CoinTracking 

The CoinTracking studies help you trade and make real-time reports on your crypto coins’ value, profit, and loss. 

They also figure out your crypto taxes. For taxes and much more, you will also get up-to-date information on the gains that have been realized and those that still need to be discovered.

This is a crypto management tool called CoinTracking. It works with exchanges like Bitbox, Binance, and Kraken but doesn’t handle NFT and DeFi taxes. 

It works with wallets like Trezo, ADA, and BNB and keeps track of 16,465 coins, giving you complete control over your crypto wealth.

Pros

1. It has an app for both Android and iOS
2. Twelve different ways to file tax returns are available.
3. Over 10,000 cryptocurrencies can be used.
4. It’s easy to make reports you can send to your lawyer or TurboTax.

Cons 

1. Chat support is not a concern for people on the free plan. 
2. The free program only lets you make 25 transactions.

CoinLedger

CoinLedger has an extra feature that helps you make crypto income, which is why many crypto users who work in the bitcoin and, more generally, the cryptocurrency business prefer it. 

This cryptocurrency tax expert walks your clients through step-by-step importing their cryptocurrency transactions.

CoinLedger works with well-known platforms like Coinbase, Binance, Kraken, and Gemini. 

It works with wallets like Trezor, Exodus, and Ledger. It works for people in the USA, UK, Canada, and other places, but not for NFT and DeFi fees.

Pros

1. Easy exporting of transaction data to TurboTax, TaxAct, and other programs has been added.
2. Make short-term and long-term reports on sales, crypto income, gain and loss, etc.
3. Comes with the tax return (IRS Form 8949)
4. Works well with the majority of coin exchanges 
5. Figures out events on the Ethereum blockchain and NFTs
6. Full support for audits
7. This includes tax loss harvesting
8. You can count on customer service 24 hours a day, seven days a week, by email or chat

Cons 

1. CryptoLedger does not accept cryptocurrencies as a form of payment.

Accointing 

Accointing is a crypto tax tool that makes crypto tax work easier. It’s one of the best apps for people new to crypto and don’t need the more advanced technology features that other tools offer.

It is based in Switzerland and has one of the easiest-to-use layouts. All activities can be easily imported by beginners using modes like API Connect and typing them in by hand. 

You can import from other platforms, keep track of your crypto gains and losses, and do other things. 

The cryptocurrency tax calculator, which is made to follow IRS tax rules, is one of its great benefits. 

Accointing works with U.S. tax rules, and versions are based in Switzerland, Australia, the UK, Germany, and Austria. 

The valuable tax harvesting feature of the tool lets you connect to more than 300 platforms and wallets.

Pros 

1. A simple User interface that makes it easy to get information
2. It lets you make tax returns for both the U.S. and Europe
3. Flexible tax plans
4. Works with more than 300 cryptocurrencies and markets
5. This includes tax loss harvesting.

Cons 

1. The Hobbyist plan only allows for 500 transactions. 
2. Non-Pro plans to provide limited customer service.

ZenLedger

Trusted crypto software like ZenLedger makes it easy to track and import transactions. 

This tool ensures that your crypto taxes are done correctly and that you don’t overpay or forget about transactions. It is also easy to use.

ZenLedger has a lot of different tax forms for all of your needs, and it can also figure out your capital gains and losses for you. 

The tool also has a feature called “Grand Unified Accounting” that reports all of your activities from your wallets in one spreadsheet. 

It also lets you use tax-loss harvesting to make trade decisions that save you money.

ZenLedger works with 30 DeFi protocols and more than 400 trades. It has an easy-to-use interface that works for new and expert crypto investors. 

ZenLedger is known for more than just its many features; it also has excellent customer service. Customers can chat, email, or call for help with any technical problem 24 hours a day, seven days a week.

Pros 

1. All transaction details are easily tracked and combined.
2. There are detailed tax reports and a variety of templates available.
3. Tax-loss harvesting is included.
4. Outstanding client service

Cons 

1. It is expensive
2. It is only for people based in the U.S.

Final Thoughts 

To make tax reports error-free and easy, we’ve discussed five of the most notable options right now. With an array of crypto tax software tools out there, it can be challenging to choose one. 

That’s why we’ve outlined these options in the hopes that we’ll make it easier for you to weigh your options.