7 Best Crypto Tax Software To Use In 2022

As tax season looms ahead, many taxpayers are feeling anxious about the process. This year, however, there are many different software options to make the process easier- including crypto tax software! We’ve compiled a list of the best crypto tax software for you to make the process quick and easy.

Worried about doing your taxes this year?

Don’t worry, using cryptocurrency tax software will make the process a breeze. All of the top options are listed here, so you can find the best one for you. Make sure to get your taxes done on time and without any stress- using crypto tax software is the easiest way to do it.

Filing your taxes can be a daunting task, especially if you’re not familiar with the process. Tax season is already a stressful time, and it can be even harder if you’re not sure what to do.

Use cryptocurrency tax software to make the process easier! All of the top options are listed here, so you can find the best one for you. Scroll down to learn more about the best cryptocurrency tax software and start filing your taxes today!

The Importance of Crypto Tax Software

When it comes to crypto taxation, it is essential to use the right software in order to make the process as smooth as possible. Failure to do so can lead to errors and potential fines from the IRS. Luckily, there are many different options for crypto tax software- so you can find the one that best fits your needs.

What Is the Best Crypto Tax Software for 2022?

There are many different types of crypto tax software available on the market. Some of the most popular ones include:

1. Koinly

This software is designed to be user-friendly and easy to use. It offers a wide range of features, including support for over 2,000 different types of cryptocurrency.

It is compatible with typical FIFOs, LIFOs and averaging cost base for tax accounts. Data export is provided by more than 350 Exchanges. The Koinly app supports nearly 17000 cryptocurrency coins in one convenient location. You can find missing transaction information and delete duplicate entries. Koinly plans include free plans which support DeFi, Margins and Futures trading.

What Makes Koinly a Great Choice for Crypto Tax Software?

Koinly is a great choice for the top cryptocurrency tax software, as it offers a wide range of features that make the tax filing process quick and easy. Here are some of the features that make Koinly a great choice:

1. User-Friendly Interface

The software has a user-friendly interface that makes the tax filing process quick and easy. This is important, as many taxpayers find the tax filing process to be daunting.

2. Accurate Calculations

Koinly offers accurate calculations, so you can be sure that you’re getting the most accurate tax return possible. This is essential in order to avoid any errors or fines from the IRS.

3. Support for Multiple Assets

Koinly supports multiple assets, so you can file your taxes for both crypto and non-crypto assets. This is a great feature, as it allows you to keep all of your tax information in one place. 

4. Affordable Pricing

Koinly is an affordable option, with prices starting at just $49.99 per year. This makes it a great choice for taxpayers who are on a budget.

Koinly Pricing

How to Use Koinly

Using Koinly is a simple process. Just follow these steps:

1. Enter your personal information

2. Connect your exchanges

3. Generate your tax report

4. File your taxes!

The Pros of Koinly

• Koinly is available in over 20 counties
• Koinly is accurate- The software is designed to ensure accuracy when filing taxes for crypto assets.
• Koinly supports over 350 cryptocurrency exchanges/wallets and all crypto listed on CoinMarketCap

The Cons of Koinly

• Expensive for frequent traders
• Specifically designed for tax purposes lacking other features

2. Tokentax.co

Tokentax is another popular choice for the best crypto tax software. It offers a wide range of features, including support for over 8,000 different types of cryptocurrency.

Tokentax is another similar crypto account management application supporting FIFO, HIFO, and LIFO reporting techniques. Base plans only support the Coinbase pro account. And the upgrade to their lower tier allows for multiple exchanges. A subscription to our newsletter is required in order to participate. Nonetheless, it’s intuitively designed.

There is a number of exchange options available through API keys. API key: TokenTax also allows automatic entries/CSV uploads of data. You have the option to pay by transaction, number, exchange support, and many additional features.

What Makes Tokentax a Great Choice for the Best Crypto Tax Software?

Tokentax is a great choice for taxpayers who are looking for a comprehensive solution. Here are some of the features that make Tokentax a great choice:

1. User-Friendly Interface

The software has a user-friendly interface that makes the tax filing process quick and easy. This is important, as many taxpayers find the tax filing process to be daunting.

2. Accurate Calculations

Tokentax offers accurate calculations, so you can be sure that you’re getting the most accurate tax return possible. This is essential in order to avoid any errors or fines from the IRS.

3. Support for Multiple Assets

Tokentax supports multiple assets, so you can file your taxes for both crypto and non-crypto assets. This is a great feature, as it allows you to keep all of your tax information in one place.

4. Affordable Pricing

Tokentax is an affordable option, with prices starting at just $65 per year. This makes it a great choice for taxpayers who are looking for a comprehensive solution.

TokenTax Pricing

How to Use Tokentax

Using Tokentax is a simple process. Just follow these steps:

1. Enter your personal information

2. Connect your exchanges

3. Generate your tax report

4. File your taxes!

The Pros of Tokentax

• Tokentax is the only cryptocurrency tax calculator that supports every exchange.
• Tokentax has a CPA and full tax filing team available for hire unlike all of its competitors
• Tokentax supports a wide range of exchanges- The software supports over 8,000 different types of cryptocurrency.

The Cons of Tokentax

• Tokentax does not offer a free trial
• Tokentax does not universally unlock API integrations

3. TaxBit

If you are looking for the top crypto tax software that is also user-friendly, TaxBit is the ideal solution. I found the software to be very intuitive and easy to use, and the customer support was stellar. TaxBit is a cryptocurrency tax software company that helps cryptocurrency holders and investors calculate their profits, losses, and tax liabilities, and generate IRS-friendly tax forms.

Taxbit includes over 500 exchanges and wallet systems. Crypto is only supported in America by taxpayers. The platform states that anyone with the same taxes could be used for this purpose. TaxBit offers an unlimited lifetime free service to its customers. It can also integrate different related services to have all the information in one dashboard. TaxBit is an online tool for making profits and losses before a sale or investment. Notably, a number of tax optimizations, such as tax losses resulting from IRS auditing assistance, are reserved for the higher levels.

Once a user connects their exchanges via TaxBit’s read-only API keys, TaxBit automatically pulls the user’s transaction history and cycles them through their tax engine. Users are then able to see the real-time tax impact of all their cryptocurrency transactions and download their yearly tax reporting forms.

TaxBit offers a wide range of features to make tax season less stressful. For example, you can automatically import your transaction data from exchanges and wallets. TaxBit also offers support for over 1,000 different types of cryptocurrencies. And if you’re not sure how to file your taxes, the platform has a team of tax experts on hand to help.

Overall, I was extremely pleased with TaxBit and would highly recommend it to anyone looking for a hassle-free way to file their cryptocurrency taxes.

TaxBit Pricing

How to Use TaxBit

Using TaxBit is easy. Just follow these steps:

1. Sign up for an account

2. Connect your exchanges

3. Generate your tax report

4. file your taxes!

5. Pay your taxes!

The Pros of TaxBit

• TaxBit supports over 500 crypto exchanges
• TaxBit is backed by PayPal and has a heavy emphasis on security
• TaxBit offers a variety of tools- The software offers a range of tools to help users track their trades and minimize their taxes.

The Cons of TaxBit

• DeFi Support is still in beta
• Tax-loss harvesting is not available unless you upgrade to TaxBit Plus+

4. CoinLedger

CoinLedger is a cryptocurrency tax software company that helps cryptocurrency holders and investors calculate their profits, losses, and tax liabilities, and generate IRS-friendly tax forms. This software is designed for traders who want to minimize their taxes. It offers a variety of tools to help users track their trades, and can also be used to file taxes.

How it works: CoinLedger offers a variety of tools to help users track their trades and file taxes. The software can be used to generate reports, and can also be integrated with other tax software.

CoinLedger supports a wide range of exchanges- The software supports over 8,000 different types of cryptocurrency.

CoinLedger Pricing

How to Use CoinLedger

Using CryptoTrader is easy. Just follow these steps:

1. Sign up for an account

2. Connect your exchanges

3. Generate your tax report

4. file your taxes!

5. Pay your taxes!

The Pros of CoinLedger

• CoinLedger supports over 300 exchanges
• CoinLedger includes outstanding customer service
• CoinLedger offers a variety of tools- The software offers a range of tools to help users track their trades and minimize their taxes.

The Cons of CoinLedger

• CoinLedger is only available in English- The software is not yet available in other languages.

5. ZenLedger

ZenLedger is an innovative crypto tax solution which allows users to easily upload their exchanges through API Keys and CVS upload. This is compatible with LIFO, HFO and FIFO reports. ZenLedger provides unlimited Exchange Platform options. It also allows displaying different cryptocurrency income types such as defie, NFT, staking donations or mining, for example. ZenLedger offers 2 different types for subscribers – DIY and tax professional assistance. Obviously both are more economical, as there is a free tier allowing for 25 transactions. Even these Free plans are fully paid with no support for DeFi nor NFT.

What Makes ZenLedger a Great Choice for the Best Crypto Tax Software?

ZenLedger crypto tax software is a great choice for taxpayers who are looking for a comprehensive solution. Here are some of the features that make Tokentax a great choice:

1. User-Friendly Interface

The software has a user-friendly interface that makes the tax filing process quick and easy. This is important, as many taxpayers find the tax filing process to be daunting.

2. Accurate Calculations

Tokentax offers accurate calculations, so you can be sure that you’re getting the most accurate tax return possible. This is essential in order to avoid any errors or fines from the IRS.

3. Support for Multiple Assets

Tokentax supports multiple assets, so you can file your taxes for both crypto and non-crypto assets. This is a great feature, as it allows you to keep all of your tax information in one place.

4. Affordable Pricing

Tokentax is an affordable option, with prices starting at just $99 per year. This makes it a great choice for taxpayers who are looking for a comprehensive solution.

How to Use ZenLedger

Using ZenLedger is a simple process. Just follow these steps:

1. Enter your personal information

2. Connect your exchanges

3. Generate your tax report

4. File your taxes!

The Pros of ZenLedger

• ZenLedger is easy to use- The simple process makes it quick and easy for taxpayers to file their taxes.
• ZenLedger is accurate- The software is designed to ensure accuracy when filing taxes for crypto assets.
• ZenLedger supports a wide range of exchanges- The software supports over 8,000 different types of cryptocurrency.

The Cons of ZenLedger

• ZenLedger is only available in English- The software is not yet available in other languages.

What to look for in a Crypto Tax Software?

Upon entering the crypto world, it’s essential you have an accurate way to know crypto tax rates. Every activity in the cryptocurrency world is always taxed by the IRS so you must keep your documentation in a proper order. It tracks the information about your activities for the purposes of preparing accurate reports and preventing the overpayment of your taxes.

Pricing and Free Trials

How can we learn crypto taxes? Get an online demo. Some providers are offering try-before-buy schemes, some of them also have simple plans which are cheap. Firsthand knowledge and understanding of the software is essential in deciding on tax solutions for cryptocurrencies. Finally, it’s also about the value that’s offered for the price. It’s best to understand what transactions you are putting into each tax year, because pricing tiers primarily depend upon such numbers. It is worth looking at if a particular software can handle more sales during your year in order to get it scaled properly.

Available features

The best crypto tax software has excellent dashboards and can track transactions. From then on the tool is going to cover tax harvesting and other functions that are intended to make the taxing process easier. This application recognizes transactions in the wallet and can help you avoid paying tax for these transactions. Some will automatically eliminate duplicate transactions on the form for you. This feature also saves time for the professional taxer. This product offers software that is useful in a business environment for analyzing taxable gains and tax liabilities of clients.

Available integrations

It is important for cryptocurrencies to have the capability to work in all the popular exchanges for data input automatically. When it comes to trading it can sometimes seem overwhelming to keep track manually. You must track all the coins and token trades in your wallet as well as the dates of the transactions. Another factor to consider when choosing software is the ability to be installed in your own country, as tax rates differ by place. The software should conform to the national tax laws.

Reputation and security

Another important factor for software handling taxation is its reputation and the security. It is important to choose an efficient tax software for crypto. If the IRS tries to use a cryptocurrency exchange to report fraud it could make the report more complicated. Whenever you buy an application, know the experience that others are having. It’s advisable to look for cryptocurrency tax reviews in person which will allow you to find the best software.

Accuracy of ready-to-use paperwork

Once these data aggregators can find your data, they will calculate your cryptocurrency tax. For this to happen seamlessly, we recommend looking at crypto tax calculators with accuracy. Many tax software programs may also offer you pre-filled documents ready for download. This book will give you more information on Form 8949. Those who do international taxes can rely on this to audit their accounts.

Other Important Factors to Consider

When it comes to comparing the features of different crypto tax software, there are a few key things to look at. Here are some of the most important factors:

1. Location- When it comes to crypto taxation, location matters. Different countries have different rules and regulations. Some software is designed specifically for taxpayers in certain countries, so be sure to choose a package that is compatible with your location.
2. Exchanges Supported- Not all exchanges are created equal. Some exchanges are more popular than others, and some only support a limited
3. Price- All of the software packages on our list are relatively affordable, but some are more expensive than others. Bitcoin Taxes, for example, is one of the more expensive options.
4. Supported cryptocurrencies- Not all crypto tax software supports every type of cryptocurrency. Bitcoin Taxes, for example, supports Bitcoin, Ethereum, and Litecoin. Cointax supports over 4,000 cryptocurrencies.
5. Ease of use- All of the software packages on our list are relatively easy to use, but some are more user-friendly than others. Cointax, for example, offers a simple step-by-step process that is perfect for beginners.
6. Accuracy- All of the software packages on our list are accurate, but some are more accurate than others. CoinTracker, for example, uses data from over 20 exchanges to ensure accuracy.

Based on these factors, we believe that the best crypto tax software for 2022 is Koinly. It is one of the more affordable options, supports over 4,000 cryptocurrencies, and is very user-friendly.

Tips for Avoiding Taxes

When it comes to reducing taxes during tax season, there are a few things that taxpayers can do:

1. Invest in cryptocurrencies- One way to reduce taxes is to invest in cryptocurrencies. Because these investments are considered capital gains, they are taxed at a lower rate than other types of income.

2. Use a crypto tax software- Another way to reduce taxes is to use a crypto tax software. This will help you to take advantage of all of the deductions and credits that you are eligible for.

3. Stay organized- One of the best ways to reduce taxes is to stay organized throughout the year. This means keeping track of all of your income and expenses, as well as any losses or gains.

By following these tips, you can minimize your taxes and maximize your returns during tax season.

Crypto Taxes

Cryptocurrencies are becoming increasingly popular, and with popularity comes regulation. As tax season approaches, it is important for taxpayers to understand how cryptocurrencies are taxed in their particular location.

There are a few different types of cryptocurrency taxes:

1. Capital gains- When you sell a cryptocurrency for more than you paid for it, you are subject to capital gains taxes.

2. Income taxes- If you are paid in cryptocurrency, you are subject to income taxes.

3. Mining taxes- If you mine cryptocurrencies, you are subject to mining taxes.

Each type of tax has different rules and regulations. It is important to familiarize yourself with the taxation system in your country before filing your taxes.

One way to reduce taxes is to invest in cryptocurrencies. Because these investments are considered capital gains, they are taxed at a lower rate than other types of income.

Another way to reduce taxes is to use crypto tax software. This will help you to take advantage of all of the deductions and credits.

Crypto Tax Reports

When it comes to crypto taxes, one of the most important things to keep track of is your crypto tax reports. A crypto tax report is a document that contains all of the information needed to file your taxes correctly. It includes information such as the date of purchase, the price you paid for the cryptocurrency, and the date of sale.

Crypto Tax Software FAQ

Is crypto tax software free?

Most crypto tax software is not free, but there are a few exceptions. To find the best crypto tax software for your needs, be sure to do your research and compare pricing.

Is TurboTax good for crypto?

Yes, TurboTax is a great option for those looking to file their crypto taxes. They have a number of features that make the process simple and straightforward, and they offer customer support in case you have any questions.

How is Cryptocurrency Taxed in Different Countries?

Cryptocurrency is taxed differently in different countries. The United States, for example, taxes cryptocurrency as property, while other countries may tax it as a commodity or currency. To calculate your cryptocurrency taxes, you will need to know the date of purchase, the price you paid for the cryptocurrency, and the date of sale.

How do I keep track of crypto taxes?

Normally when reporting your tax you must keep track of the cryptocurrency names, the dates that you obtained and the dates that you have traded them. The tool can be used to monitor costs, gain, sale price and other information. The best crypto tax software on the market keeps an eye out for your tax returns and presents you with a complete tax report you could file with the IRS.

Do you have to pay taxes on crypto if you don’t cash out?

The cryptocurrency can be stored in the bank without any taxation or other fees for its value. When selling your cryptocurrencies, you are required to pay income taxes. The taxes that are owed are dependent on your holding time in cryptocurrency. For example, if you’ve owned coins for less than ten years the tax on selling the coins is equal to your regular earnings.

What happens if you don’t report cryptocurrency on taxes?

If your tax returns don’t include cryptocurrencies, your account might be audited by the IRS. It’s an intimidating process that may result in penalties or worse. It’s also important to report your cryptocurrency earnings and trades as accurately as possible to avoid potentially severe penalties.

Are crypto-to-crypto trades taxed?

Crypto trading is taxed. If you earn or suffer a loss from this sale, you must monitor their progress and file a tax return through Form 8949 with IRS officials.

What is the difference between short-term and long-term gains on cryptocurrency?

Short-term gains are those that are held for one year or less, while long-term gains are those that are held for more than one year. Short-term gains are taxed at a higher rate than long-term gains.

Conclusion

As tax season approaches, it is important for taxpayers to understand how cryptocurrencies are taxed in their particular locations. There are a few different types of cryptocurrency taxes: capital gains, income taxes, and mining taxes. Each type of tax has different rules and regulations. It is important to familiarize yourself with the taxation system in your country before filing your taxes.

No matter what type of crypto investor you are, it’s important to stay up-to-date on the latest tax laws. And, with tax season right around the corner, now is the perfect time to start planning. By using crypto tax software, you can make the process quick and easy. So, what are you waiting for? Get started today.