Cryptocurrency trading has become increasingly popular in recent years, but when it comes to tax time, it can be a complex process. Fortunately, several software companies have created products to help investors and traders prepare to file taxes for Bitcoin and other cryptocurrencies.
Our comprehensive guide will explore four of the best crypto tax software options available in 2023, their features, pricing, and integrations.
Crypto tax software simplifies calculating and reporting your cryptocurrency transactions for tax purposes. These crypto tax tools assist in creating precise tax forms, like IRS Form 8949 (for reporting asset sales).
With the growing popularity of cryptocurrencies and the increasing complexity of trading activities, using crypto tax software has become as essential for individuals as it is for businesses.
Before diving into the best crypto tax software options, it’s crucial to consider a few factors that can help you make an informed decision. Here are some key things to think about:
To determine the best crypto tax software options for 2023, we considered several factors, including user reviews, features offered, ease of use, pricing, customer support, and integrations with popular tax preparation programs. The following software products emerged as the top contenders:
Crypto Tax Software |
Prices start at |
Best for |
Our Rating |
Token Tax |
$65 per year |
Wide Range of Pricing Options |
***** |
CoinLedger io |
$49 per year |
Supporting Multiple Exchanges |
**** |
ZenLedger |
$49 per year |
Outstanding Customer Support |
**** |
Koinly |
$49 per year |
Great Choice for International Crypto |
**** |
TokenTax offers a range of plans to cater to different types of crypto traders. Pricing starts at $65 per year and supports up to 500 transactions with automated connections to Coinbase and Coinbase Pro.
Higher-tier plans offer additional features such as tax-loss harvesting, NFT and DeFi integration, and professional tax preparation assistance. All plans include live chat support, ensuring you have access to assistance when needed.
CoinLedger, formerly known as CryptoTraderTax, offers a comprehensive suite of features to simplify your crypto tax reporting. Their pricing is based on the number of transactions, with a free plan available for up to 100 trades.
Paid plans start at $49 per year and offer additional tax forms, support for DeFi income, and live chat support. CoinLedger connects with over 500 exchanges, wallets, and other crypto services, ensuring your transaction data is accurately imported.
ZenLedger offers a range of pricing plans based on transaction volume. Their free version is suitable for occasional traders with up to 25 transactions. Plans starting at $49 per year cater to users with more than 25 transactions and offer support for NFTs, DeFi, and staking.
One notable feature of ZenLedger is its premium support, which includes chat and phone assistance. They also offer professional tax preparation services for users who require expert assistance.
Koinly is a popular choice for crypto tax software, offering a free trial for up to 10,000 transactions. Their pricing starts at $49 per year for plans that include tax form downloads. Koinly supports integration with TurboTax, TaxAct, and H&R Block, making it easy to transfer your data to popular tax preparation programs.
With support for staking and other types of crypto income, Koinly caters to a wide range of cryptocurrency traders. They also provide tax reports for multiple countries, including Canada, Australia, The United Kingdom, Germany, Norway, Denmark, and Sweden.
When choosing the best crypto tax software for your needs, it’s important to consider several factors. Ask yourself the following questions:
Consider these questions alongside the features and pricing of each software option to make an informed decision.
A: It’s possible that your existing tax software may support importing data from leading cryptocurrency services. Check with your tax software provider to see if this feature is available.
A: Yes, some crypto tax software providers offer free plans for personal investors. However, these plans may have limitations on the number of transactions or features available.
A: Crypto tax software relies on the data you provide, so it’s important to ensure that your transaction history is complete and accurate. Always review the generated reports and consult with a tax professional if needed.
A: Some crypto tax software providers offer tax-loss harvesting features, which can help you offset capital gains by selling investments for less than you paid. Check if the crypto software you choose includes this feature.
A: Yes, most crypto tax software can generate IRS Form 8949 based on your transaction data. This form is used to report sales of capital assets, including cryptocurrency.
In conclusion, choosing the best crypto tax software is crucial for accurately reporting and calculating your cryptocurrency transactions for tax purposes.
Consider factors such as integration with your crypto exchange, compatibility with tax preparation programs, transaction volume, and support for DeFi, staking, and NFTs. By selecting the right software, you can streamline the tax filing process and ensure compliance with tax regulations.
Remember, it’s always a good idea to consult with a tax professional to ensure that you are meeting all tax obligations related to your cryptocurrency activities. Happy tax filing!
Alexander Sterling is a renowned financial writer with over 10 years in the finance sector. With a strong economics background, he simplifies complex financial topics for a wide audience. Alexander contributes to top financial platforms and is working on his first book to promote financial independence.
Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.
