Best Crypto Tax Software List for 2024 and Beyond
Cryptocurrencies have emerged as an incredible financial vehicle for active traders. With markets open 24×7 and zero downtime, trading volumes continue to break records. Billions of dollars are being moved daily across various chains.
But as with any investment, there are tax implications that need to be considered.
With so many tools and technological prowess, people are able to make money more easily than able to figure out how much exactly they owe their governments in taxes.
Crypto investors who are not familiar with tax law and accounting principles find the process of filing taxes daunting and sometimes even get into legal trouble for underreporting or not reporting at all.
In this article, we will explore the best crypto tax software 2024 that can help you navigate the complex world of cryptocurrency taxation with ease. From features to pricing, we will provide a comprehensive review of each tool to help you choose the right one for your needs.
Table of contents
Why Should You Use The Best Crypto Tax Software 2024?
Many investors are unaware of the tax implications of their cryptocurrency investments, leading to under-reporting of gains or even legal troubles.
Keeping track of every trade across various platforms manually does not seem practical, especially when dealing with a large number of trades.
This is where the best crypto tax reporting software come in handy. These tools automate the process of tracking and calculating tax obligations, making it easy for investors to report their gains and stay compliant with tax laws.
What about crypto tax professions? Isn’t it easier to hire them?
While hiring a crypto tax professional can be beneficial, it is more expensive and unviable for everyone.
Further, most accountants are still unfamiliar with the nuances of cryptocurrency tax laws and often fail to give accurate advice. This is partly because of the dynamic stance of governments across the world on crypto regulation. Hence, finding a skilled cryptocurrency tax accountant at an affordable rate for most individuals and small businesses is challenging.
This makes crypto tax tools the preferred choice for many investors looking to stay on top of their taxes and remain compliant with the laws.
By automating their crypto tax filing process with the best crypto tax app, investors can save time and money while staying compliant with local regulations. Furthermore, the data generated by these tools can be used to identify areas of improvement and optimize their strategies for maximum returns.
CoinLedger
CoinLedger is an effective crypto tax reporting software geared toward US residents. (image source)
CoinLedger is a cryptocurrency tax tool that offers a wide range of features to help US residents manage their crypto taxes efficiently. While the solution does generate international gain and loss reports that can be generated in any fiat currency, it’s mainly geared toward US residents.
CoinLedger is trusted by over 500,000 crypto investors to save them time, thanks to some impressive features.
With CoinLedger, you can get your crypto tax report done in three simple steps.
- The first step is to import all your crypto transactions into the software. Fortunately, this solution has import integrations for major wallets like Exodus, Trezor, Trust Wallet, and more. For those who use DeFi, integrations also exist for most major DeFi solutions. The same goes for crypto exchanges.
- After importing your crypto wallet, DeFi, and exchange transactions into CoinLedger, you won’t have to worry about calculating the cost basis or fiat value – the tool does it for you using historical crypto prices data. You can also declare any additional crypto income, such as mining rewards, gifts, or airdrops in that financial year.
- Then you merely have to review all that data, and CoinLedger will generate your tax reports within seconds. These reports include short and long-term sales audit trail reports, tax loss harvesting reports, and the all-important IRS Form 8949 for US residents.
Additionally, CoinLedger also gives a TurboTax direct import, which is a required tax form that US taxpayers need to attach to their return.
Pricing: Freemium. Paid version starts at $49.
Accointing
Accounting is supported in seven countries. You can get a generic tax report for 41 more countries. (image source)
Accointing is a crypto tax tool that simultaneously tracks your portfolio and helps you file your crypto taxes efficiently. It has a 3.3/5 rating on Trustpilot.
The tool generates tax reports specific to your country and its particular tax rules. If you reside in Australia, the UK, Germany, Switzerland, or Austria, you can get a tax report generated that caters to your country’s tax regulations.
In the UK, Accointing generates tax reports based on the guidelines set out by HMRC, which is an added advantage for UK-based traders. The tool is similar to CoinLedger, but it boasts more than 300 integrations, including a range of wallet types, platforms, and exchanges.
Accointing offers three key methods for importing transactions:
- CSV uploads
- Direct connections via API integrations
- Providing your public wallet address
Those who would rather not deal with APIs will find the third option especially beneficial. On the other hand, if you value your privacy highly, it is best to veer away from this selection as it links your identity to a wallet.
After you import your data, Accointing will automate the classification of transactions and tax calculations. This is especially important in countries such as the UK, which have explicit rules for DeFi staking, margin trading, mining, and trading.
Pricing: Paid. Starts at $49.
Koinly
Koinly supports six different accoutning methods. (image source)
One of the best things about Koinly is its wide range of supported countries. Unlike many other crypto tax solutions that focus solely on the US market, Koinly has support for Canada, Australia, New Zealand, Brazil, most of Europe, and several Asian countries like Japan, South Korea, and Singapore.
Koinly supports the following accountancy methods:
- FIFO
- LIFO
- Highest cost
- Lowest cost
- Average cost basis
- Shared pool
Koinly’s crypto portfolio tracker is another standout feature. With this tool, you can view the return on investment (ROI) on each crypto investment, invested fiat income, profit/loss, and capital gains. This makes it easier to track your gains and losses and provides a clear understanding of your portfolio’s performance.
The tool also provides an option to use your wallet’s public address to collect all of your transactions on the chain. Koinly’s smart transfer matching feature can use AI to detect transfers between your own wallets and exclude them from tax reports. However, if you’re uncomfortable with that, you can also import that data via API.
Koinly supports over 23,000 cryptocurrencies, has ten years of historical price data to draw upon, and supports 170+ blockchains, 400+ exchanges, and 100+ wallets. It also offers integration with more than 30 other services like BlockFi.
Utilizing Koinly’s double-entry ledger system is a great way to identify and fix errors that may arise from automation quickly. Not only does the platform alert you when your balances dip below zero, but it also helps avoid duplicate transactions – potentially saving you several hours. Plus, automatic checks ensure data has been imported correctly so that everything runs as seamlessly as possible.
Pricing: Freemium. Starts at EUR 39 per tax year.
CoinTracker
Unlike many other crypto tax software, CoinTracker also supports NFT transactions. (image source)
CoinTracker is a powerful crypto tax tool that simplifies the process of calculating and reporting taxes on cryptocurrency transactions. It has over 1 million users and is highly recommended for DeFi and NFTs transactions. In this article, we will delve deeper into the features and benefits of CoinTracker.
CoinTracker has integrations with popular DeFi and NFTs sites, including OpenSea, Compound, and Uniswap, allowing you to easily track your transactions on these platforms and calculate taxes accurately. With CoinTracker, you can integrate over 500 exchanges, wallets, and blockchains.
If your crypto platform is not available on CoinTracker, you can still import data using your crypto wallet’s public address. CoinTracker also allows you to share your tax reports with your accountant before processing. This is a great feature for those who want to ensure their tax reports are accurate and compliant with the latest regulations.
CoinTracker has a mobile app that you can use to track your crypto transactions on the go. The app is user-friendly and offers all the features of the desktop version. You can also enable two-factor authentication for added security.
When you connect your crypto platforms to CoinTracker, the tool only obtains read-only access. All API keys are encrypted, and you can enable two-factor authentication for added security.
Pricing: Freemium. Starts at $59 per year.
TaxBit
Unlike many other crypto tax software, TaxBit also supports NFT transactions. (image source)
TaxBit is one of the best free cryptocurrency tax software that allows you to calculate your tax liability in real-time. It uses automated data feeds from over 500 different exchanges and offers NFT and DeFi support, making it one of the most comprehensive crypto tax tools available today.
TaxBit works by analyzing your crypto trades and providing you with a report of your tax liability. One of the standout features of TaxBit is its real-time tax calculation. It’s perfect for investors who want to stay on top of their tax liabilities and avoid surprises when tax season rolls around. TaxBit also has a comprehensive list of supported exchanges and wallets, so you can be sure that all your trades are accounted for.
When it comes to safety, TaxBit takes your data privacy seriously. It only collects the information it needs to calculate your taxes and encrypts all your data. It doesn’t share your information with the IRS or any other authority.
While TaxBit is an excellent tool for US residents, it may not be as useful for those living outside the US. Some of its features, such as DeFi support, are tailored to the US market. TaxBit also doesn’t have a mobile app yet, which could be a drawback for investors who want to manage their crypto taxes on the go.
Pricing: Freemium. Contact for the paid version.
ZenLedger
ZenLedger was rated the best crypto tax software for tax professionals by Fortunly.. (image source)
With ZenLedger’s comprehensive yet straightforward platform, you can effortlessly manage several transactions like mining income, staking rewards, gifts, and much more. Their specialized Crypto Income feature is especially useful for businesses that generate revenue in cryptocurrency. Additionally, their Grand Unified Spreadsheet provides users with an overall view of your crypto portfolio alongside any tax liabilities you may have incurred.
One of the most loved features of ZenLedger is its security. They do not store any of your data, and all storage is encrypted. Additionally, their security goes one step further with the amount of encryption on their platform.
It’s great that ZenLedger has a version that’s free for all users, and their security is top-notch. However, it’s important to note that only US tax forms are available to download, so that might be something to consider before using the platform. ZenLedger also has an app that you can download, making it convenient to use on the go. They also provide one of the best tax service for crypto.
Pricing: Freemium. Paid version starts at $42.
CryptoTaxCalculator
CryptoTaxCalculator also supports ERC-1155 tokens. (image source)
CryptoTaxCalculator is a sophisticated platform engineered to handle and monitor all of your cryptocurrency exchanges from different blockchains. It simplifies complex tax-related tasks, transforming them into simple calculations – making it an excellent solution for intricate tax computations.
One of the standout features of CryptoTaxCalculator is its ability to integrate significant exchanges, wallets, and chains, covering NFTs, DEX, and DeFi trading. It even takes into account complicated scenarios like leverage trading, staking rewards, DeFi loans, and gas fees.
With its strong and accurate tax reporting system, the platform can perform all of your taxes with impressive precision. It outlines each computation in detail as well, helping you understand how DeFi and DEX trading is taxed. By doing this, it teaches you what remains applicable to these types of transactions so that you can make informed decisions when managing your portfolio.
It also connects to approximately 500 exchanges, including all major international exchanges. This makes it a perfect solution for accountants and tax professionals who need to prepare tax reports for their clients.
CryptoTaxCalculator is also configurable with tax settings, so you can customize it to meet your needs. This means you won’t have to struggle with spreadsheets anymore and can rely on this for all of your crypto tax reporting needs.
Conclusion
No matter what your needs are, one of these three platforms is sure to be a perfect fit. Whether you need something simple or an advanced tool for complex tax computations, each has its own unique features that can help you manage your crypto taxes quickly and accurately.
Spend some time researching each platform, and you’ll be sure to find the ideal one for you.
FAQs
What is the best way to file crypto taxes?
The most efficient way is using specialized crypto tax software. These tools automate calculations and generate reports, saving you time and ensuring accuracy. Consider your portfolio’s complexity and your country’s tax laws when choosing a tool.
Can I do my crypto taxes myself?
Yes, you can do your crypto taxes yourself with the help of cryptocurrency tax reporting software. However, it is recommended that you seek professional advice if your crypto portfolio is complex and demanding.
Is crypto tax software free?
Some of the best crypto tax software is free to use, while others offer a freemium version with limited features. For more advanced features and access to the complete platform, you’ll have to pay for a premium subscription.
How do I avoid paying tax on crypto?
The only way to avoid paying tax on crypto is by not engaging in any taxable activities. Any activity that involves the purchase, sale, or trade of cryptocurrencies requires you to pay taxes. Furthermore, if you are mining or staking cryptocurrencies, you also need to pay taxes on the rewards earned.
There may be other ways to bring your tax liability to zero depending on your local crypto regulations. For this, we recommend that you speak to a certified crypto tax professional.
Disclaimer: Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more at: https://go.payb.is/FCA-Info
