Best Crypto Tax Software

Cryptocurrencies are now treated as financial assets in the US and many other countries today, making crypto taxation a reality. As a result, crypto transactions must be tracked, carefully reported, and filed to tax authorities. The major challenge, however, is making accurate records of crypto transactions. Cryptocurrency taxation is a complex and ever-evolving area. As such, it can be difficult to determine which crypto tax software is the best for your needs. However, by considering the various factors involved in making this decision, you can make an informed choice about the best crypto tax software for you.

This article will guide you to choose the best crypto tax software 2022. You'll also learn about the best crypto tax software, the essential features, the factors to consider when selecting software, and the best way to use crypto tax software for filing tax reports.

What do you need to know when choosing cryptocurrency tax software?

It is vital to check up on crypto tax software reviews before choosing a software. Although you can easily choose the best crypto tax software, you need one that fits your needs. There are four key factors that you should consider before choosing crypto tax software. These are:

Costs and fees

Most crypto tax software offers competitive pricing. Although there are few free tax software, it is best to use premium software as the free ones provide limited functions or use. Pricing typically ranges from $29 to $87 with various features accessible via different packages and are charged for submitting tax reports and not for collating transactions. Therefore, you must review the pricing plans and what features they offer before choosing a tax software.

Ease of use

Whatever software you choose should be easy to use; the complex user interface can frustrate you. The best crypto tax software 2022 has a simple but well-designed user interface with all features creatively displayed. However, watch out for software with little to no on-screen assistance or back-end support.

Customer support options

If you ever run into some trouble with tax software, you'll want access to a customer support agent to help you out. These days, the question is no longer whether software comes with customer support but the effectiveness of the agents. Please find out how the customer service agents of the crypto tax software operate before choosing them. You should skip any software that doesn't provide customer support service.

Free filing options

There are IRS partners that offer free tax filing options. They are called the IRS Free File partners. Here is another factor that you should consider when choosing tax software. Does the software provide free electronic tax preparation? As a qualified taxpayer, you are positioned to enjoy this feature, and you should find out how to get it done for you.

These four factors will help you choose your best crypto tax software for a smooth filing experience. Let's take a look at some of the best crypto tax software.

Comparison of Top Cryptocurrency Tax Software

Here are our top four recommended crypto tax software for 2022:

Let's look into these software to understand their features and advantages.

TokenTax

TokenTax is a crypto-focused tax software that tracks cryptocurrency transactions and calculates their tax. TokenTax is particularly useful to crypto users who have old transactions dating as far back as 2014; TokenTax can follow and calculate the tax on such transactions even if they are inaccurate. In addition, as a tax-first software, TokenTax reports IRS-compliant tax and the use of tax-loss harvesting, among other tax minimization methods.

The software sends automated reports and allows manual entry and export tax information in a CSV file. Because TokenTax accepts most cryptocurrencies, it is one of the best bitcoin tax software today. TokenTax takes integrations, and external data from every crypto exchange supports DeFi and NFT platforms and offers tax-loss harvesting. TokenTax generates IRS Form 8949. We list TokenTax as one of the best crypto tax services because of its firm customer service policy, ease of payment (crypto, debit, and credit cards), and support, margin trading.

TokenTax offers competitive pricing plans:

• Free, which allows up to 500 transactions and integrates with a few exchanges
• Premium, at $199, allows up to 5,000 transactions and integrates with all exchanges
• Pro, at $799, allows up to 20,000 transactions and integrates with all exchanges
• VIP, at $2,500, allows up to 30,000 transactions and integrates with all exchanges.

TokenTax integrates with TurboTax, one of the many tax software that helps people file federal and state taxes properly.

TaxBit

TaxBit is a crypto tax software that provides crypto accounting services for users. TaxBit was released in 2018 and focused on delivering digital asset accounting for individuals, governments, businesses, and corporate organizations. The software delivers automated crypto tax reports directly to the software of choice and integrates with nearly every crypto exchange. TaxBit supports all cryptocurrencies and is available on both desktop and mobile.

TaxBit plans begin from the $50 Basic program, which provides access to download tax forms and upload reports from other platforms. The other plans are the Plus plan which costs $175, and the Pro plan, which costs $500. All programs have dedicated customer support lines, and there is no free version. Some Taxbit Plus features are specialized CSV import, tax optimizer, NFT gallery, and portfolio analysis. The Pro features a dedicated manager, CPA review, product support, and IRS audit support. TaxBit is one of the best crypto accounting software in 2022 and is listed severally as the best software for crypto taxes.

CryptoTrader

CryptoTrader was published in 2017 and is also considered among the best tax software for crypto. CryptoTrader works by integrating with crypto platforms and sending tax reports directly to the authorities.

The software integrates with every crypto exchange and accepts over 10,000 cryptocurrencies.

The pricing plans are:

• Hobbyist, at $49, allows 100 trades and
• Day trader, at $99, allows 1,500 trades
• High volume, at $199, allows 5,000 transactions
• Unlimited, at $299, allows unlimited transactions.

There is no free version, but all plans have a 14-day money-back guarantee. In addition, CryptoTrader permits unlimited revisions and provides dedicated customer support and data import from any crypto exchange.

All CryptoTrader plans integrate with CEX and DeFi and tax software such as TurboTax Online, TurboTax Desktop, and TaxACT. In addition, CryptoTrader provides tax reports for IRS Form 8949, capital gains, tax-loss harvesting, end-of-year positions, income report, and audit trail report. If you want the best crypto tax app, you can't do better than CryptoTrader.

TurboTax

TurboTax was published in 1984 and is easily one of the oldest and cheapest crypto tax software. The software was developed to help citizens perform easy and seamless tax reports and has now grown to include crypto tax reporting. TurboTax operates a DIY pricing plan that provides flexibility and fair pricing. The TurboTax plans are:

TurboTax supports all exchanges and all cryptocurrencies. The software was previously part of the IRS Free File Alliance, a program that helped a certain income group access free tax report services. TurboTax crypto mining tax calculator is regarded as one of the best today. TurboTax's main advantages are the DIY option that allows users to control their tax report timing and integrate with tax authorities. The software also has a live customer support service that offers prompt assistance to users, especially in the DIY plans.

Koinly

Koinly was first released in 2018 in London. Koinly is one of the recommended tax software 2022 for its simplicity, ease of use, and fast turnaround time. Koinly integrates with over 350 exchanges, including the major crypto exchanges such as Binance, Bittrex, Coinbase, and DEX. The software supports over 17,000 cryptocurrencies and 350 blockchains. Some outstanding features of Koinly are the Double-entry ledger system, tax-loss harvesting, auto import, duplicate verification, smart transfer matching, and customer support service.

Koinly pricing plans are:

• Free, at $0, support 10,000 transactions, and do not offer Schedule C, D, and Form 8949. The free plan does not integrate with TurboTax.
• Newbie, at $49, offers 100 transactions and the full features
• Hodler, at $99, offers 1000 transactions and the full features
• Trader, at $199, offers 10,000+ transactions, the full features, and email support.

Koinly is arguably the best tax service, and it's free forever plan makes it a great tax software 2022 option if you are on a budget.

Conclusion

Crypto taxes are important today, and it is probably best to use tax software for reporting your crypto taxes. You could find it difficult to choose the best crypto tax service from the plethora of software in the market today, but carefully consider some factors before deciding. We recommend Koinly, TurboTax, CryptoTrader, Taxbit, and TokenTax as some of the best tax software for cryptocurrency in 2022.

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Getting your tax reporting right is a priority, and you'll get that with any recommended software. It is best to choose software that meets your needs. Perhaps, you are a small retail trader with dozens of transactions. You could take advantage of free tax reports or the DIY mode.